Sportradar has posted positive results of its 2023 Q1, delivering growth in revenue and adjusted EBITDA during a trading period that saw further big investments in AI and CV. In its report for the period, the company highlights:
- Revenue in the first quarter of 2023 increased 24% to €207.6 million compared with the first quarter of 2022.
- The RoW Betting segment, accounting for 52% of total revenue, grew 25% to €108.5 million, primarily driven by strong performance from Managed Betting Services (MBS) and Live Odds.
- The U.S. segment revenue grew 55% to €39.7 million compared with the first quarter of 2022, driven by higher sales of betting products as well as the Company’s digitaladvertising (ad:s) product. The U.S. segment generated positive Adjusted EBITDA for the third consecutive quarter with an Adjusted EBITDA2 margin of 17%.
- Total Profit for the first quarter of 2023 was €6.8 million compared with €8.2 million for the same quarter last year. The Company’s Adjusted EBITDA2 in the first quarter of 2023 increased 37% to €36.7 million compared with the first quarter of 2022, demonstrating operational leverage from higher revenue despite increased investment into Artificial Intelligence (AI) for liquidity trading, and Computer Vision technology.
- Adjusted EBITDA margin was 18% in the first quarter of 2023, an increase of 176 bps compared with the prior year period.
- Adjusted Free Cash Flow2 in the first quarter of 2023 was €12.4 million, compared with €12.9 million for the prior year period, as a result of improved working capital management offset by an unfavorable impact from foreign currency exchange rates. The resulting Cash Flow Conversion was 34% in the quarter.
- The Company’s customer Net Retention Ratio (NRR) was 120% in the first quarter of 2023, an improvement over the NRR from the fourth quarter of 2022 of 119%.
Carsten Koerl, Chief Executive Officer of Sportradar commented: “We started fiscal 2023 on solid footing, as we continued to deliver strong top line growth, predominately by growing our value add products such as MBS and Live Odds in the Rest of World business, and strong, profitable growth in our U.S. segment.”
“We are also demonstrating operational leverage as we continue to focus on cost discipline across the organization and invest prudently to grow our top line. We are confident that our ongoing product innovation in AI and computer vision will enable us to remain a market leader and increase shareholder value for our investors.”
Regarding its annual financial outlook, Sportradar reaffirmed the one provided on March 15, 2023, for revenue and Adjusted EBITDA2for fiscal 2023 as follows:
- Sportradar expects its revenue for fiscal 2023 to be in the range of €902.0 million to €920.0 million, representing growth of 24% to 26% over fiscal 2022.
- Adjusted EBITDA2 is expected to be in a range of €157.0 million to €167.0 million, representing 25% to 33% growth versus last year.
- Adjusted EBITDA margin is expected to be in the range of 17% to 18%.
Source: GMB
