Sportradar, the leading provider of sports data and content, has revealed a significant increase in its first-quarter revenues, showcasing a strong start to the fiscal year 2024. The company reported a revenue surge to €265.9 million, marking a substantial 28.1% growth from the previous year’s €207.6 million for the same period. This remarkable expansion is a testament to Sportradar’s robust business model and the increasing demand for sports betting and data services.
The positive momentum didn’t stop there, as Sportradar also noted an adjusted EBITDA of €47.2 million—up by 28.6% from Q1 2023’s €36.7 million. The firm credits its successful adjustments to operational efficiencies and revenue escalations, which have effectively curbed the amplified costs related to sports rights.
This impressive revenue performance was underlined by exceptional developments across Sportradar’s diverse product mix, with “broad-based strength” being a recurrent theme. The betting technology and solutions division experienced the most remarkable upsurge, with an increase of 34.6%, which equated to €218.8 million. This division alone accounted for a staggering 82.3% of the total revenue.
Not to be overshadowed, the sports content, technology, and solutions sector also saw revenue growth, albeit at a slightly more modest scale of 4.7%, culminating in a figure of €47.1 million. This represents 17.7% of the overall revenues.
While these figures paint a picture of financial health, Sportradar has reported a net loss for Q1, a stark contrast to the €6.8 million profit from the same quarter of the previous year. Nevertheless, Sportradar asserts that this loss is negligible as a percentage of revenue. CEO Carsten Koerl remains optimistic about the company’s stability and growth, emphasizing that the adjusted EBITDA margin has held steady at 18%.
Koerl expressed confidence in the company’s direction, stating, “Fiscal 2024 is off to a great start, building on the strong momentum and progress we made last year.” He added, “This quarter, we saw broad-based strength across our product portfolio including strong client adoption of our ATP and NBA product offerings.”
Exploring the underlying factors of Sportradar’s Q1 loss, significant increases in various costs have played a role. Service and license purchases swelled by 34.7% to €65.2 million, finance costs more than tripled to €18.8 million, and foreign currency losses escalated by 291.9% to €14.5 million. Although personnel expenses remained relatively stable, depreciation and amortization surged by 61.6% to €76.9 million.
A sharp rise in sports right costs, amounting to a 78% year-on-year increase, culminated in an expenditure of €90.9 million. Sportradar attributes this spike to partnership deals with prominent organizations such as the Association of Tennis Professionals (ATP) and the National Basketball Association (NBA), aligning with the company’s 2024 expectations.
Despite the loss, Sportradar is buoyed by gains in other business segments owing to strategic sports partnerships. The data and streaming rights deal with Tennis Data Innovations, alongside a close relationship with the NBA, have been pivotal for growth. The company’s offerings, particularly ATP content, and exclusive NBA data, directly influenced a 46% growth in streaming and betting engagement, with live data and odds surging by 29%.
In the company’s sports content, technology, and solutions segment, a 6% rise in marketing and media services revenue has helped balance otherwise stable sports performance revenues.
Specific market highlights showed exceptional growth in the US, with revenues rocketing by 65% to €60.5 million. In contrast, the rest of world markets also displayed an upward trajectory with a 19.4% gain, reaching €200.4 million.
Riding this wave of ascendancy, Sportradar is raising its financial outlook for 2024 and has announced a share repurchase program worth €200m, signaling confidence in its business fundamentals. Koerl affirmed this approach, saying, “In light of our strong business fundamentals, we are raising our full year outlook and are commencing purchases under our share repurchase program.”
As Sportradar navigates the complexities of sports data and betting landscapes, its mixed financial results underscore a dynamic industry climate—one where rising costs are met with strategic initiatives and optimism for continued growth.
