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Sportradar Reports Strong Growth and Increased Profitability and Cash Flow

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Sportradar Group AG, the leading global technology company enabling next generation engagement in sports and provider of business-to-business solutions to the global sports betting industry, today announced financial results for its third quarter ended September 30, 2022.

Third Quarter 2022 Highlights

  • Revenue in the third quarter of 2022 increased 31% to €178.8 million ($175.2 million)1 compared with the third quarter of 2021. 2022 year-to-date revenue grew 28% compared to the same nine months in 2021.
  • The RoW Betting segment, accounting for 56% of total revenue, grew 28% to €100.9 million ($98.9 million)1, driven by strong performance from our Managed Betting Services (MBS).
  • U.S. segment revenue grew 61% to €31.6 million ($31.0 million)1 compared to the third quarter of 2021, driven by strong market growth and positive adoption of in-play betting. The U.S. segment turned profitable for the first time since the Company’s initial public offering and generated a positive Adjusted EBITDA margin of 11%.
  • The Company’s Adjusted EBITDA2 in the third quarter of 2022 increased 75% to €36.5 million ($35.8 million)1 compared with the third quarter of 2021 as a result of strong revenue growth even with continuous investments in the Company’s growing business.
  • Adjusted EBITDA margin2 was 20% in the third quarter of 2022, an increase of 500 bps compared to the quarter for the prior year period and 400 bps higher compared to the second quarter of 2022.
  • Adjusted Free Cash Flow2 in the third quarter of 2022 increased to €33.9 million, compared to €32.9 million for the prior year period. The resulting Cash Flow Conversion2 was 93% in the quarter.
  • During the quarter, the Company prepaid €200.0 million of its outstanding debt. As of September 30, 2022, total debt was €236.9 million, and cash and cash equivalents totaled €512.5 million.
  • The Company has raised its guidance for revenue and the lower end of its Adjusted EBITDA2 range for the full year 2022.
Key Financial Measures Q3 Q3 Change
In millions, in Euros 2022 2021 %
Revenue 178.8 136.8 31%
Adjusted EBITDA2 36.5 20.9 75%
Adjusted EBITDA margin2 20% 15%
Adjusted Free Cash Flow2 33.9 32.9 3%
Cash Flow Conversion2 93% 158%

1 For the convenience of the reader, we have translated Euros amounts at the noon buying rate of the Federal Reserve Bank on September 30, 2022, which was €1.00 to $0.98.
2 Non-IFRS financial measure; see “Non-IFRS Financial Measures and Operating Metrics” and accompanying tables for further explanations and reconciliations of non-IFRS measures to IFRS measures.

Carsten Koerl, Chief Executive Officer of Sportradar said: “Our strong performance in the third quarter exceeded our expectations across all key financial metrics. We consistently managed to grow revenue, profitability and cash flows despite adverse market conditions during the first three quarters of 2022. The Company exceeds expectations quarter-in and quarter-out, and as a result of our operational performance – in particular the U.S. and the betting rest-of-world business – as well as our organizational streamlining, we are able to raise our full year guidance for revenue and increase the lower end of our Adjusted EBITDA range.”

“We are proud of the continuous success of our U.S. operations. We managed to generate a U.S. profit for the first time in the third quarter, displaying solid operational leverage in the business model. Underpinning this success is the extension of our long-term partnership with FanDuel. This partnership is a testimony for our strategy, to expand our relationships and become an embedded technology provider for our customers, based on strategic long-term deals with our league partners.”

Ulrich Harmuth, Interim Chief Financial Officer added: “The financial results in the third quarter demonstrated that Sportradar consistently has managed to grow almost three times faster than the underlying betting market and our growing scale has led to margin expansion – as indicated by the U.S. segment turning profitable in the third quarter. As a result of this strong momentum and based on what we can see today, our 2023 preliminary expectations are for revenue to grow in the mid-20’s percent while expanding Adjusted EBITDA margin above 2022 levels.

Segment Information

RoW Betting

  • Segment revenue in the third quarter of 2022 increased by 28% to €100.9 million compared with the third quarter of 2021. This growth was driven primarily by increased sales of our higher value-add offerings including Managed Betting Services (MBS), which increased 84% to €38.2 million, and Live Odds Services, which increased 12% to €27.1 million. MBS growth was attributable to a record annualized turnover3 of €19.0 billion and the success of our strategy to move existing customers to higher value add products.
  • Segment Adjusted EBITDA2 in the third quarter of 2022 increased 8% to €48.2 million compared with the third quarter of 2021. Segment Adjusted EBITDA margin2 decreased to 48% from 57% in the third quarter of 2021 driven by inorganic investments into AI capabilities for our MBS business, expanding our sport rights portfolio, as well as temporary cost savings in sport rights and scouting from the prior year due to the COVID-19 pandemic.

RoW Audiovisual (AV)

  • Segment revenue in the third quarter of 2022 increased by 14% to €33.1 million compared with the third quarter of 2021. Growth was driven by cross-selling audiovisual content to existing data customers and expanding AV portfolio sales with existing AV customers.
  • Segment Adjusted EBITDA2 in the third quarter of 2022 increased 32% to €12.6 million compared with the third quarter of 2021. Segment Adjusted EBITDA margin2 increased to 38% from 33% compared with the third quarter of 2021 as a result of AV revenue growth.

United States

  • Segment revenue in the third quarter of 2022 increased by 61% to €31.6 million compared with the third quarter of 2021. This growth was driven by a strong increase of U.S. betting services, driven by cross-selling non-data products to betting operators as well as benefiting from our customers’ growth as a result of a development in the underlying market and new states legalizing betting.
  • Segment Adjusted EBITDA2 in the third quarter of 2022 was €3.4 million compared with a loss of (€6.6) million in the third quarter of 2021, primarily driven by enhanced operating leverage as a result of the growing scale of our business despite continuous investments in the U.S. segment’s products and content portfolio. Segment Adjusted EBITDA margin2 improved to 11% from (34%) compared with the third quarter of 2021.

2 Non-IFRS financial measure; see “Non-IFRS Financial Measures and Operating Metrics” and accompanying tables for further explanations and reconciliations of non-IFRS measures to IFRS measures.
3 Turnover is the total amount of stakes placed and accepted in betting.

Costs and Expenses

  • Purchased services and licenses in the third quarter of 2022 increased by €18.1 million to €47.5 million compared with the third quarter of 2021, reflecting continuous investments in content creation and processing, higher event coverage and higher scouting costs. Of the total, approximately €13.7 million was expensed sports rights.
  • Personnel expenses in the third quarter of 2022 increased by €16.9 million to €68.3 million, an increase of 33% compared with the third quarter of 2021. Adjusted for inorganic hires, personnel cost grew 27% compared to the third quarter in 2021.
  • Other Operating expenses in the third quarter of 2022 decreased by €4.9 million to €20.3 million, as a result of our efforts to increase the effectiveness of our central services and due to one-time costs resulting from our initial public offering in September 2021.
  • Total sport rights costs in the third quarter of 2022 increased by €5.9 million to €34.6 million compared with the third quarter of 2021, primarily a result of costs associated with new acquired rights in 2022 for the ITF, UEFA and ATP.

Recent Business/Company Highlights

  • Sportradar and FanDuel sign long-term agreement for Official NBA data through the 2030-31 season. Providing FanDuel with a comprehensive portfolio of betting products and entertainment tools, Sportradar remains the preferred data and odds supplier to FanDuel through 2031. Using official NBA data, Sportradar and FanDuel will collaborate to enhance the sports betting experience with new offerings such as certain player tracking data to create props and same game parlays. Additionally, FanDuel will use Sportradar’s proprietary Live Channel Trading (LCT) product.
  • Sportradar reaffirms leadership position in cricket market with partnerships with Australian Premier Cricket competitions. Sportradar announced the renewal of partnership agreements with the top tier club cricket competitions in Tasmania, Queensland, and Western Australia. Currently, Sportradar is partners with every single state and territory cricket governing body in Australia. Extensions with these clubs enable Sportradar to remain the official streaming partner until mid-2025
  • Sportradar and International Golf Federation enter integrity partnership. Sportradar’s Integrity Services (SIS) unit signed a multi-year integrity partnership with the International Golf Federation (IGF). Under the terms of the initial two-year agreement, SIS will provide bet monitoring through its Universal Fraud Detection System (UFDS) for several IGF competitions. Sportradar Integrity Services have detected more than 7,300 suspicious matches during the past 17 years, with over 600 taking place in 2022 alone.
  • Tennis Data Innovations and Sportradar team up to expand official tennis data distribution. The partnership sees the launch of a “new secondary feed,” to enable the provision of betting-related services based on official ATP Tour and ATP Challenger Tour scores to a suite of global bookmakers. Of significance, the partnership sees the ATP change its data framework, allowing bookmakers to have uninterrupted access to official data, as scores to date have been delivered directly from the umpire’s chair.
  • Sportradar continues to evolve its organizational structure to set it up for continued success in achieving its strategic goals around growth, organizational effectiveness and efficiency. The Company is optimizing its organization by appointing global leaders for content creation, product development and commercial excellence – with the U.S. retaining a dedicated go-to-market approach. With this new structure, the Company will become faster in decision-making and execution, and will be more effective and efficient in serving global customers with a growing global product portfolio. The net effect will also be to significantly reduce the number of direct reports to the CEO.

Annual Financial Outlook 
Sportradar has updated its outlook for revenue and Adjusted EBITDA for fiscal 2022 as follows:

  • Sportradar has raised its revenue outlook for fiscal 2022 to a range of €718.0 million to €723.0 million ($703.6 million to $708.5 million)1, from its previous range of €695.0 million to €715.0 million representing prospective growth of 28% to 29% over fiscal 2021.
  • Outlook for Adjusted EBITDA2 is narrowed to a range of €124.0 million to €127.0 million ($121.5 million to $124.5 million)1 from the previous range of €123.0 million to €133.0 million, representing 22% to 24% growth versus last year.
  • Adjusted EBITDA margin2 is expected to be in the range of 17% to 18%.4

George Miller (Gyorgy Molnar) started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

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INCENTIVE GAMES SIGNS DISTRIBUTION DEAL WITH ARISTOCRAT INTERACTIVE™

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Incentive Games, a leading B2B games provider specialising in acquisition and retention, has announced that it is collaborating with Aristocrat Interactive™, Aristocrat’s online Real Money Gaming (RMG) division.

Under the terms of the agreement, Incentive Games will distribute its suite of high-quality Free-to-Play and Real Money Gaming content through the Aristocrat Interactive network. Its expert team will tailor the games to align seamlessly with the platform, ensuring it resonates with the Aristocrat Interactive’s valued operators and their players.

This agreement unites two industry leaders in iGaming, combining their strengths to deliver exceptional player experiences and elevate customer engagement.

John Gordon, CEO of Incentive Games, commented: “We are thrilled to work with Aristocrat Interactive, a renowned industry leader and exceptional aggregator that we know will showcase our games with the care and attention they deserve. The agreement marks a landmark moment for our company, opening the door to new markets and enabling us to bring our best-in-class products to new audiences worldwide.”

Ashley Bloor, Director of Partnerships at Aristocrat Interactive Content & Aggregation, said, “We are delighted to offer Incentive Games content through our aggregation platform, further enhancing our ability to provide diverse and dynamic experiences for our customers. This is an exciting opportunity to expand our portfolio, and we look forward to working closely with Incentive Games to create exceptional, tailored experiences that help us deliver premium gaming experiences to our global audience.”

 

The post INCENTIVE GAMES SIGNS DISTRIBUTION DEAL WITH ARISTOCRAT INTERACTIVE™ appeared first on European Gaming Industry News.

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Boomerang make statement appointment with Justin Browning-Smith joining as Product Director from Aspers Casino

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Boomerang Digital, the technology-driven entertainment solutions provider built by Andrew Ludlow and Air Dice has announced the appointment of Justin Browning-Smith to the newly created post of Product Director. 

Justin, whose industry career started as a Gaming Machine Manager with Scottish and Newcastle in 1994 joins from Aspers Casino where he was Director of Electronic Gaming.

Reporting to Chief Operating Officer Chris Wrigley Justin will take responsibility for Boomerangs growing suite of products, services and innovations ensuring the expanded portfolio is completely aligned and represents best-in-class delivery and value to our customers.

Confirming the news which he described as an ‘appointment of intent’ Boomerang Group Chief Executive Andrew Ludlow said: “I am personally and professionally delighted to be able to announce what is a Tier 1 appointment to a role which will be pivotal to the growth of Boomerang and to our drive to consistently exceed the expectations of our growing customer base across every sector we now supply.

“This is a dynamic new role and Justin’s track record of delivering high profile, industry leading projects including Gala Touchpads for Gala Bingo, Virtual Racing streaming channels and the shop of the future to Ladbrokes and Coral as well as the Aspers’ betting office confirms the calibre of industry talent that we are attracting.”

“Boomerang is about deploying best in class technologies in order to meet the specific operational requirements of our customers and Justin is ideally qualified to help us achieve this. With the exception of a period at PwC, his entire career has been in land based gaming working across the pub, betting, bingo, adult gaming centre and casino sectors.

Justin Browning-Smith added: “Over the past 15-years my focus has been on product development and I am seriously looking forward to continuing that core delivery with Boomerang, a company that is built on enterprise and which has innovation running through its veins.

“The Boomerang culture is underpinned by a real energy and enthusiasm and I am relishing the opportunity to work alongside a highly talented team and of course contributing to Boomerang’s compelling future vision and success story.”

 

The post Boomerang make statement appointment with Justin Browning-Smith joining as Product Director from Aspers Casino appeared first on European Gaming Industry News.

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Plaza Hotel & Casino hosting Nike Pickleball Camp, March 14-16 Registration deadline extended to March 13 but only a few spots remain

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Offering 16 rooftop pickleball courts, the most of any Las Vegas resort, the Plaza Hotel & Casino in downtown Las Vegas will host a three-day Nike Pickleball Camp led by nationally-ranked professional pickleball player Rick Witsken, this weekend Friday, March 14 through Sunday, March 16, from 1 to 4 p.m. each day.

Open to players 18 years or older and at any skill level (beginner, intermediate, or advanced), the weekend camp gives participants the option to attend one, two, or three days of pickleball lessons and play that are designed to address specific needs, increase knowledge of the game, and help improve play in a fun and friendly environment.

The Nike Pickleball Camp will be led by Rick Witsken, a top ranked senior pro and co-founder of the National Pickleball League (NPL). Previously world-ranked on the Association of Tennis Professionals (ATP) in both singles and doubles play and currently ranked #1 on the Association of Pickleball Players (APP) Senior Pro Men’s standings, Witsken has won more than 100 senior and open pro medals and has served as director of over 50 camps. He currently hosts the “RipSken Pickleball” podcast and posts instructional videos online via the Midwest Pickleball club. He also founded the first public scholastic middle school pickleball team at Zionsville Middle School in Whitestown, Indiana.

The first day of the camp will focus on short and soft game skills, like dinks and drops. The second day highlights aggressive game skills, including drives, serves, returns, speed ups. The final day will culminate with strategy and positioning lessons.

All camp participants will receive a Nike Pickleball Camp t-shirt and prizes with their registration. They must bring their own athletic shoes and water bottle, and if they do not have their own paddle, one will be provided free of charge.

Upon arrival, all participants are evaluated by camp staff so that their personal instructional needs can be addressed throughout the weekend. Participants are grouped by ability first then by age per the camp director’s discretion, and adjustments are made as needed during camp.

Interested players can register for one, two or all three days of the camp online at plazahotelcasino.com/pickleball/. The deadline for registering has been extended to Thursday, March 13 but only a few spots remain.

The Plaza Hotel & Casino will also offer exclusive hotel room packages for participants that can be booked online. Depending on demand, additional Nike Pickleball Camps at the Plaza may be scheduled in the future.

 

The post Plaza Hotel & Casino hosting Nike Pickleball Camp, March 14-16 Registration deadline extended to March 13 but only a few spots remain appeared first on European Gaming Industry News.

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