Sports technology provider Sportradar Group AG has showcased a 22% surge in revenue in the second quarter of 2023, totaling $238.5 million (€216.4 million). The company has now reaffirmed its annual outlook, with projected growth of 24% to 26% for revenue and a 25% to 33% for Adjusted EBITDA for the entire year.
Carsten Koerl, Chief Executive Officer of Sportradar, commented on the positive results: “We are very proud of our strong performance during the first half of 2023 and remain on track to achieve the highest annual revenue in the company’s history. We hold a pivotal position in the global sports ecosystem and believe our talent, technology, and diverse product offering position us for strong future growth.”
The second quarter also saw Sportradar maintain a Net Retention Ratio (NRR) of 120%, indicating the company’s prowess in cross-selling and upselling its products and services to existing clients.
In terms of profitability, Sportradar demonstrated growth in Adjusted EBITDA, which surged by 46% to $44.21 million (€40.1 million) compared to Q2 2022. This increase was primarily driven by the company’s revenue growth and operating efficiency.
Including a one-time loss of $8.8 million (€8.0 million) on the disposal of an equity investment, Sportradar’s Total Profit from continuing operations witnessed a decrease of $25.1 million (€22.8 million) compared to the same quarter in the previous year.
This decline was mainly attributed to a net negative impact from foreign exchange rates. The Adjusted EBITDA margin, which stood at 19% for Q2 2023, reflected an improvement of nearly 300 basis points compared to the prior year period.
Sportradar provided an update on its financial position, boasting a total liquidity of $533.6 million (€484 million), including $291 million (€264 million) in cash and cash equivalents, along with an undrawn credit facility of $242.5 million (€220 million) as of June 30, 2023.
In the RoW Betting segment, revenue for Q2 2023 increased by 20% to $125.8 million (€114.1 million), primarily attributed to the success of Managed Betting Services (MBS), Live Odd, and Live Data products. Meanwhile, the RoW Audiovisual (AV) segment reported a 25% surge in revenue, driven by new deals and sustained sales growth.
Sportradar’s U.S. segment remains a standout performer, with Q2 2023 revenue surging by 31% to $41.9 million (€38.0 million). This surge is primarily driven by a collective 105% growth in betting, gaming, and audiovisual products.
A notable achievement in this segment is the marked improvement in Adjusted EBITDA margin, which shifted from a negative 19% in Q2 2022 to a positive 14% in Q2 2023, reflecting the efficacy of Sportradar’s operational strategies.
A major driver of Sportradar’s success during the period was its strategic partnerships with renowned sports leagues such as the NBA, MLB, and NHL. These collaborations enable the development of products and solutions that cater to the needs of operators on a global scale. The company is “optimizing our portfolio with a focus on products that will give us a higher margin,” Koerl said in a call with analysts Wednesday morning.
Sportradar’s positive outlook extends to its full-year guidance for fiscal 2023. The company reaffirmed its projections, anticipating revenue in the range of $994.5 million (€902 million) to $1 billion (€920 million), signifying a growth of 24% to 26%. Adjusted EBITDA is expected to fall between $173.1 million (€157 million) and $184.1 million (€167 million), indicating a growth range of 25% to 33%.
Access Sportradar’s full Q2 report here.