In a significant update to its financial performance, Sportradar has announced its results for the second quarter of 2024, showcasing notable growth in revenue and strategic expansions despite facing a slight net loss. 

Sportradar Reports Q2 2024 Financial Results

Revenue Performance: A Robust Growth Trajectory

Sportradar has reported impressive revenue figures for Q2 2024, reaching €278.4 million ($304.2 million), marking a remarkable 29% increase year-on-year. This growth underscores the company’s solid operational execution and market positioning. The adjusted EBITDA for the quarter stood at €48.8 million, up 22% year-on-year, reflecting enhanced profitability and operational efficiency.

However, despite these strong revenue figures, Sportradar faced a net loss of €1.5 million this quarter, a reversal from the minimal profit recorded during the same period last year. This loss highlights the challenges the company faces amid its aggressive expansion and investment strategies.

Segment-wise Revenue Analysis

Betting Technology and Solutions

A major contributor to Sportradar’s revenue growth in Q2 was its Betting Technology and Solutions segment, which generated €229.1 million, up by 30% year-on-year. This segment now accounts for 82% of the company’s total revenue, an increase from 81% last year. Key areas of growth within this segment include:

• Streaming and Betting Engagement: Revenue surged by €26.2 million or 41%.
• Live Data and Odds: An increase of €18.6 million, translating to a 27% rise.
• Managed Betting Services: Revenue grew by €8.5 million, or 21%.

These figures illustrate Sportradar’s expanding footprint in the sportsbook technology arena, driven by enhanced services and innovative solutions.

Sports Content, Technology, and Services

The Sports Content, Technology, and Services segment generated €49.3 million in Q2, reflecting a 22% increase year-on-year. Despite this growth, the segment now represents only 18% of total revenue, a decrease from 19% last year. This segment saw:

• Marketing and Media Services: An increase of 28%.
• Sports Performance Segment: Remained relatively flat compared to the previous year.

This shift indicates a stronger performance in betting-related services compared to content and technology offerings.

Geographical Revenue Distribution

United States Market Growth

The United States emerged as a significant growth driver for Sportradar, accounting for 22% of Q2 revenue, which amounts to €60.6 million. This represents a substantial 59% increase year-on-year, up from 18% of total revenue last year. This growth reflects the increasing demand for sports betting technology and solutions in the US market.

Rest of the World

The Rest of the World segment contributed 78% or €217.8 million to Sportradar’s Q2 revenue, marking a 22% increase year-on-year. This segment’s share of total revenue has decreased from 82% last year, highlighting the accelerated growth in the US market.

Cost and Expense Analysis

Purchased Services and Licenses

Sportradar’s purchased services and licenses increased by 44% year-on-year, totaling €72.6 million. This includes:

• Expensed Sport Rights: €28.9 million.
• Other Purchased Services: €43.7 million, up 32% year-on-year.

Personnel Expenses

Personnel expenses rose by 6% in Q2, amounting to €89.1 million. This increase reflects Sportradar’s investment in talent and resources to support its growth initiatives.

Other Operating Expenses

Other operating expenses totaled €22.6 million, an 8% increase. This includes a notable 83% year-on-year rise in total sports rights, driven by new agreements with major sports organizations such as the ATP and NBA, amounting to €95.9 million.

Strategic Developments

During Q2, Sportradar made several strategic moves to bolster its market position:

• Executive Appointment: In May, Sportradar appointed Behshad Behzadi as its Chief Technology Officer (CTO) and Chief Artificial Intelligence Officer (CAIO).
• Partnership with UTR Sports: Sportradar secured a long-term partnership with UTR Sports to provide data coverage for over 20,000 Pro Tennis Tour matches.
• Technological Advancements: The company released new audio and digital out-of-home marketing technology aimed at enhancing sports betting advertisements.

CEO Statement on Financial Results

Carsten Koerl, CEO of Sportradar, commented on the results:

“Our strong second quarter results, including another quarter of record revenues, are a testament to the operating momentum we are generating across our business and the clear execution against our strategies to drive outperformance versus the market. We delivered robust growth across our high-value product portfolio and strong client uptake, while continuing to strengthen our business by driving efficiencies and 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.”

Outlook for 2024

Based on the current quarter’s performance, Sportradar has revised its outlook for the fiscal year 2024. The company now projects total revenue to reach €1.07 billion, an increase of €10 million from previous forecasts and up 22% year-on-year. Adjusted EBITDA is expected to total €204 million, a €2 million increase from previous projections, also reflecting a 22% rise. Sportradar anticipates an adjusted EBITDA margin of approximately 19%.

Conclusion: The Results

Sportradar’s Q2 2024 results show strong revenue growth of 29% year-on-year to €278.4 million and a 22% increase in adjusted EBITDA to €48.8 million. Despite this, the company reported a net loss of €1.5 million. Key revenue drivers included the Betting Technology and Solutions segment and significant growth in the U.S. market. Strategic advancements and technological innovations support an updated full-year forecast of €1.07 billion in revenue and €204 million in adjusted EBITDA.

FAQs About Sportradar’s Q2 2024 Financial Results

1. What were Sportradar’s total revenues for Q2 2024?

Sportradar reported total revenues of €278.4 million ($304.2 million) for Q2 2024, representing a 29% increase year-on-year.

2. How did Sportradar’s adjusted EBITDA perform in Q2 2024?

The adjusted EBITDA for Q2 2024 was €48.8 million, up 22% year-on-year, indicating a strong improvement in profitability.

3. Did Sportradar report a profit or loss for the quarter?

Sportradar reported a net loss of €1.5 million for Q2 2024, compared to a minimal profit recorded during the same period last year.

4. What are the key revenue segments for Sportradar, and how did they perform?

• Betting Technology and Solutions: Generated €229.1 million, up 30% year-on-year, and now accounts for 82% of total revenue.
• Sports Content, Technology, and Services: Earned €49.3 million, up 22% year-on-year, representing 18% of total revenue.

5. How did Sportradar’s revenue break down geographically?

• United States: Contributed €60.6 million (22% of total revenue), up 59% year-on-year.
• Rest of the World: Generated €217.8 million (78% of total revenue), up 22% year-on-year.

6. What were the major cost and expense changes in Q2 2024?

• Purchased Services and Licenses: Increased by 44% year-on-year, totaling €72.6 million.
• Personnel Expenses: Rose by 6%, amounting to €89.1 million.
• Other Operating Expenses: Totaled €22.6 million, an 8% increase.

7. What significant strategic moves did Sportradar make during the quarter?

• Appointed Behshad Behzadi as Chief Technology Officer (CTO) and Chief Artificial Intelligence Officer (CAIO).
• Secured a long-term partnership with UTR Sports to cover more than 20,000 Pro Tennis Tour matches.
• Launched new audio and digital out-of-home marketing technology for sports betting ads.

8. What did CEO Carsten Koerl say about the Q2 results?

CEO Carsten Koerl highlighted that the strong Q2 results reflect the company’s operational momentum and strategy execution. He expressed satisfaction with the robust growth across high-value products and indicated an improved full-year guidance due to strong topline growth and increased cash flow generation.

9. What is Sportradar’s updated outlook for the fiscal year 2024?

Sportradar has adjusted its forecast to project total revenue of €1.07 billion (up €10 million from previous estimates) and adjusted EBITDA of €204 million (up €2 million from previous projections). The company expects an adjusted EBITDA margin of approximately 19%.