Sportradar AG has released its financial results for the second quarter, recording a 29% year-on-year increase in revenue from €216.4 million to €278.4 million (+€62 million). Management expects Sportradar AG to close the €1 billion revenue gap for the year, which would be the highest since its listing on the Global Nasdaq in 2021.
Adjusted EBITDA increased by 22% from €40.1 million to €48.8 million. EBITDA growth was maintained despite the trading margin declining from 18.5% to 17.5% in the second quarter, indicating the company’s profitability.
Sportradar’s profit from continuing operations also fell to -€1.5 million in the first half of the year, down 1.6% year-on-year.
The loss was likely due to increased expenses. Fee and compensation costs rose 44% year-on-year to €72.6 million. Out-of-pocket expenses increased 6% to €89.1 million, total sports rights expenses rose 83% to €95.9 million and other operating expenses rose 8% to €22.6 million.
Carsten Koerl, Sportradar CEO, said: “Our strong second-quarter results, including another quarter of record revenues, demonstrate the operating momentum we are generating across our business and the clear execution of our strategies to outperform the market.”
Segment by segment, revenue for the firm’s Betting Technology and Solutions division grew 30% year-over-year from €176.1m to €229.4m, making up 82% of group-wide revenue, up from 81% in Q2 2023.
The Sports Content, Technology, and Services division recorded revenue growth of 22%, increasing from €49.3m to €40.3m. This division accounted for 18% of group revenue, down slightly from 19% the previous year.
In the US, Sportradar continues to see strong revenue growth. The country’s huge betting market, high-value sports leagues, and extensive media broadcasting network make it a lucrative market for sports tech and data firms.
US revenue during Q2 2024 rose 59% year-over-year from €38m to €60.6m. While Rest of World revenue remains larger – increasing by 22% from €178.4m to €217.8m – the US now accounts for 22% of Sportradar’s global revenue, up from 18% last year.
Sportradar counts the NBA as one of its biggest US clients. The company’s figures also indicate active partnerships across various other sports and regions, including China’s CBA League (basketball) and UEFA (football). Both partnerships were renewed this year, with the UEFA deal extended in Q2.
Arrangements with prominent sports leagues have contributed to rising media rights costs, particularly NBA and ATP rights. However, these deals have played a significant role in securing Sportradar’s strong position in the global sports tech and data sector.
Looking ahead, Sportradar expects its 2024 revenue to reach €1.07bn, slightly up from its previous projection of €1.06bn, marking a 22% year-over-year growth. Adjusted EBITDA is expected to reach €204m, also a 22% increase from the previous year and 1% higher than its earlier expectation of €202m, with a margin of around 19%.
Koerl added: “We delivered robust growth across our high-value product portfolio and saw strong client uptake while continuing to strengthen our business by driving efficiencies and generating significant cash flow. I am pleased to once again raise our full-year guidance as we continue to build long-term shareholder value through strong topline growth, a focus on delivering additional operating leverage, and increasing cash flow generation.”
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