The landscape of sports data and technology under the umbrella of Endeavor has experienced a significant uptick in revenue growth, with an impressive 80.3% increase in FY23. This surge in revenue highlights the division’s contribution to Endeavor’s overall financial health, accounting for 7.8% of the company’s aggregate annual revenue, which totaled an astounding $5.96 billion.
The remarkable growth trajectory of Endeavor’s sports data and tech segment can be traced back to strategic corporate maneuvers throughout the year. Such initiatives include the acquisition of OpenBet for $800 million in September 2022, a pivotal move that bolstered Endeavor’s portfolio in the sector.
Endeavor’s strategic expansion continued with OpenBet’s acquisition of Neccton, a specialist in responsible gambling and anti-money laundering (AML) technology, in June 2023. OpenBet further solidified their leadership roster by appointing Sam Depoortere as its vice president of platform products in September.
The collective strength of Endeavor’s assets was augmented last month when the company announced the integration of OpenBet and another of its holdings, IMG Arena, consolidating both entities under the OpenBet brand. This integration emphasizes Endeavor’s commitment to reinforcing its presence in the competitive sports segment.
Ariel Emanuel, CEO of Endeavor, took the opportunity to commend the exceptional performance of the sports segment as a key factor in the robust earnings reported for the year. “2023 was a transformational year for Endeavor as we strengthened our positions in sports and entertainment through many of our industry-leading assets,” Emanuel said. He further emphasized the company’s dedicated pursuit of shareholder value maximization, through dividends and strategic alternatives.
As Endeavor celebrated its milestones, Light & Wonder’s FY23 results released the previous day reflected on the sale of OpenBet, a divestment that allowed the company to pivot its focus onto other business areas.
During Endeavor’s full-year 2023 earnings conference call, Jordan Lublin, the chief finance officer, credited the standout performance of the sports data and technology segment to OpenBet’s impressive first-year results following the acquisition. Lublin also acknowledged the catalyst role played by IMG Arena’s offerings, which elevated the company’s financial profile—particularly IMG Arena’s foray into betting data and streaming products. Significant developments for IMG Arena included its acquisition of Leap Gaming in April and securing exclusive media rights to 85 territories of the Confederation of African Football in December.
A closer look at the company’s financial health revealed that the Adjusted EBITDA for the year tallied at $62.7 million, marking a 31.1% year-on-year increase. This figure represents a noteworthy 5.1% of Endeavor’s total Adjusted EBITDA for the year, which stood at $1.21 billion.
Quarterly performance also showcased the sports data and technology segment’s resilience, with fourth-quarter revenues reaching $113.5 million, reflecting a 4.7% annual increase. The Adjusted EBITDA for this quarter was reported at $20.5 million, a slight dip from $21.6 million recorded in the same quarter of the previous year.
Emanuel took pride in highlighting stellar achievements by OpenBet and IMG Arena during Endeavor’s earnings call, particularly pointing out OpenBet’s agreement to enhance Veikkaus’ sports betting platform in Finland. Emanuel regards Finland as a key opportunity in the European sports betting scene and praised it as a pinnacle of OpenBet’s growth in 2023, which also expanded to Greece, Germany, the Czech Republic, and Canada. Emanuel further indicated the company’s focus on expanding to Australia and Brazil in 2024, showcasing Endeavor’s strategic growth aspirations on a global scale.
