Sportradar sees 30% revenue hike in 2022 driven by US growth

Sports technology company Sportradar has announced its financial results for the fourth quarter and full year 2022. Revenue for the entire year increased 30% to €730.2 million ($781.3 million) from 2021, while Q4 revenue hiked by 35% to €206.3 million ($220.7 million). The favorable results were driven by a 26% growth from the rest of the world betting segment and a 78% growth from the US for the year.

Full-year revenue exceeded the company's 2022 annual outlook range of €718 million to €723 million, and Adjusted EBITDA for the full year of 2022 increased 23% to €125.8 million ($134.6 million), within the annual outlook range.

However, total profit for 2022 was down by 18%, reaching €10.5 million ($11.1 million), and the company actually made a loss of €33 million ($35 million) in the three-month period ending 31 December amid rises in a number of key costs in the year.

Despite these setbacks, Sportradar had much to celebrate last year. In 2022, the company strengthened its core betting business by increasing its wallet share with customers by selling its higher-value products and Managed Trading Services (MTS) turnover volume grew 84% to €19.4 billion ($20.5 billion).

Moreover, the company's digital advertising product ad:s' revenue grew 69%, and U.S. betting revenue grew 101%. The results came as Sportradar continues to invest in trading algorithms, artificial intelligence and computer vision technology.

Carsten Koerl, Chief Executive Officer of Sportradar, said: “I am very pleased with our strong results driven by exceptional execution this past year. We saw excellent performance across all of our key performance metrics despite challenging macroeconomic conditions including a second consecutive quarter of positive Adjusted EBITDA in the U.S.”

“Our continued long-term partnerships with leading global sports bodies, and innovation across new technologies such as artificial intelligence and computer vision and as importantly, a team passionate about delivering solutions to our clients, make us very excited about our growth in 2023 and beyond,” he added.

As for fourth quarter highlights, the Rest-of-World betting segment, accounting for 51% of total revenue, grew 29% to €105.9 million ($113.3 million), driven by strong performance from Managed Betting Services (MBS). MTS trading volume grew 75%, primarily driven by a strong FIFA World Cup performance.

The U.S. segment revenue grew 77% in the quarter to €41.2 million ($44.0 million) compared with the fourth quarter of 2021, driven by strong market growth and positive adoption of in-play betting. The U.S. segment generated a positive Adjusted EBITDA for the second consecutive quarter with an Adjusted EBITDA margin of 11%.

Ulrich Harmuth, Interim Chief Financial Officer, added: “Our fourth quarter financial results illustrate the momentum we’ve built throughout 2022. We demonstrated operational leverage in our business model, despite making significant investments in our products and technology, streamlined our organization to be more customer-centric, and strengthened our balance sheet by repaying our debt.”

The company is now providing an annual outlook for full year 2023. Revenue is expected to be in the range of €902 million ($956.6 million) to €920 million ($975.7 million) and Adjusted EBITDA is expected to be in the range of €157 million ($166.5 million) to €167 million ($177.1 million).