Sportradar clocks 20% revenue growth to $954.6 million in 2023, launches $200 million share buyback

Sports technology provider Sportradar's revenue for the full year of 2023 increased 20% to €877.6 million ($954.6 million) compared to the previous year, driven by 20% growth from the rest of world betting segment and 30% growth from the U.S.

The full-year revenue was at the upper end of the company’s 2023 annual outlook range of €870-€880 million ($946.4 million - $957.3 million).

Total profit from continuing operations for the full year grew a whopping 229.5% from €10.5 million ($11.4 million) in 2022 to €34.6 million ($37.6 million) in the reporting year. Adjusted EBITDA for the full year increased 33% to €166.8 million ($181.4 million) and was at the upper end of the company’s 2023 annual outlook range of €162 - €167 million ($172 - $181.6 million), close to exceeding it.

Total Profit from continuing operations, as a percentage of revenue, stood at 4%, up from 1% last year. The Adjusted EBITDA margin for 2023 increased over 177 bps to 19% compared to 2022, primarily driven by strong operating leverage from sports rights and personnel costs.

Carsten Koerl, Chief Executive Officer of Sportradar

Cash and cash equivalents grew to €277.2 million ($301.5 million) as of December 31, 2023, and total liquidity available for use on December 31, 2023, including undrawn credit facilities was €497.2 million ($541 million).

The company said it has authorized a $200 million share buyback program given the "confidence in the long-term outlook and ability to generate significant excess capital going forward." Sportradar also reiterated that it expects to deliver at least 20% year-over-year growth in revenue and Adjusted EBITDA in fiscal 2024.

The company also released its financial results for the fourth quarter, during which time its revenue increased 22% to €252.6 million ($274.8 million) compared to the same period in 2022.

Its overall FY2023 success can be partly attributed to the successful Q4 close to the year, in which it recorded double-digit growth in both revenue and adjusted EBITDA, as well as a turn to profitability compared to the same quarter last year.

Total profit for the fourth quarter stood at €23.2 million ($25.2 million) compared to a loss of €33.3 million ($36.2 million) for the same quarter last year. Adjusted EBITDA  increased 13% to €39.5 million ($43 million) during Q4.

“2023 was another dynamic and successful year for the company delivering our 3rd consecutive year of more than 20% revenue growth, improved profitability, and margin expansion. We are pleased with our growth momentum, fueled by our best-in-class content portfolio, innovative product roadmap and technology capabilities,” Carsten Koerl, Chief Executive Officer of Sportradar, said.

"For 2024, we plan to continue to scale our business globally, targeting at least 20% growth in revenue and adjusted EBITDA. Given our market leadership and confidence in the long-term profitability and cashflow outlook for the company, we have authorized a $200 million share buyback program. We remain laser-focused on disciplined execution of our growth strategy and delivering tremendous value for our clients and our shareholders."