Sportradar, the leading sportsbook technology company, has announced its financial results for the second quarter of 2024, showcasing impressive growth across several key metrics. The company’s total revenue for Q2 reached €278.4 million ($304.2 million), marking a significant 29% increase compared to the same period last year. Adjusted EBITDA also saw a healthy rise of 22%, reaching €48.8 million. Despite these positive indicators, Sportradar reported a quarterly loss of €1.5 million, a decline from the minimal profit reported in the previous year.
Betting Technology and Solutions
Sportradar’s betting technology and solutions segment delivered strong performance in Q2, generating €229.1 million, which accounts for 82% of the company’s total revenue. This segment experienced a robust 30% year-on-year growth.
Sports Content, Technology, and Services
The sports content, technology, and services segment achieved €49.3 million in revenue, up 22% year-on-year. Despite this growth, the segment’s contribution to total revenue decreased to 18% from 19% last year due to the more rapid expansion of the betting technology and solutions segment.
US Market
The US market has shown remarkable growth, contributing €60.6 million, or 22% of Sportradar’s Q2 revenue. This represents a dramatic 59% increase year-on-year and a rise from 18% of total revenue last year, highlighting the expanding footprint of Sportradar in the American market.
International Market
The remaining 78% of revenue, amounting to €217.8 million, came from international operations outside the US. This segment grew by 22% year-on-year but saw a reduction in its share of total revenue from 82% to 78%, underscoring the accelerating growth in the US market.
Purchased Services and Licenses
Costs related to purchased services and licenses increased by 44% year-on-year, totaling €72.6 million. This included €28.9 million spent on sports rights and €43.7 million on other purchased services, marking a 32% rise.
Personnel Expenses
Personnel expenses rose by 6%, totaling €89.1 million, reflecting ongoing investment in human resources to support business growth.
Other Operating Expenses
Other operating expenses amounted to €22.6 million, up 8% from the previous year, contributing to the overall increase in operating costs.
Sports Rights Costs
Total expenditure on sports rights saw a significant increase of 83% year-on-year, reaching €95.9 million. This surge was primarily driven by new deals with the ATP and NBA.
Quarterly Developments
In May, Sportradar made notable strides by appointing Behshad Behzadi as Chief Technology Officer (CTO) and Chief Artificial Intelligence Officer (CAIO). Additionally, a strategic partnership was established with UTR Sports, expanding Sportradar’s data coverage to more than 20,000 Pro Tennis Tour matches. The company also introduced new audio and digital out-of-home marketing technologies aimed at enhancing sports betting advertisements.
Carsten Koerl, Sportradar’s CEO, 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.”
2024 Outlook
Based on Q2 performance, Sportradar has revised its fiscal year outlook. The company now anticipates total revenue for 2024 to reach €1.07 billion, an increase of €10 million from previous estimates, representing a 22% growth year-on-year. Adjusted EBITDA is forecasted to reach €204 million, up by €2 million from the earlier forecast and also reflecting a 22% increase. The company expects an adjusted EBITDA margin of approximately 19%.
Sportradar’s Q2 2024 financial results illustrate a period of robust growth and strategic advancement despite recording a quarterly loss. The company’s substantial revenue increases across key segments and markets, coupled with strategic partnerships and technological advancements, position it well for continued growth in the latter half of 2024. The revised full-year guidance underscores the company’s confidence in sustaining its growth trajectory and operational efficiency.