Sportradar has reported its financial results for the second quarter of 2024. In total, the sportsbook technology company made €278.4m ($304.2m) in Q2, up 29% year-on-year, with adjusted EBITDA of €48.8m, up 22% year-on-year.
Despite this, Sportradar reported a loss of €1.5m this quarter, compared to a “de minimis” profit this time last year.
By segment
Looking at revenue by segment, Sportradar’s betting technology and solutions made €229.1m in Q2, up 30% year-on-year. This accounts for 82% of the business’ total revenue, compared to 81% last year.
Of this, streaming and betting engagement was up by €26.2m, or 41%, live data and odds was up €18.6m, or 27%, and managed betting services were up by €8.5m, or 21%.
Sports content, technology and services meanwhile made €49.3m, up 22% year-on-year. Despite this, the growth rate of the technology and solutions means this accounts for just 18% of Sportradar’s total revenue, compared to 19% last year.
Of this, marketing and media services were up 28%, while the sports performance segment remained broadly flat compared to last year.
By geography
The US accounted for 22%, or €60.6m, of Sportradar’s Q2 revenue, up a sizeable 59% year-on –year, having only accounted for 18% of the business’ revenue this time last year.
The remaining 78%, or €217.8m, was made by operations across the rest of the world, up 22% year-on-year. This is a dip from the 82% share this segment had this time last year, reflecting just how much the US segment has grown year-on-year.
Costs and expenses
Purchased services and licences were up 44% year-on-year in Q2, totalling €72.6m. Of this, €28.9m went towards expensed sport rights. The remaining purchased services came to €43.7m up 32% year-on-year.
Personnel expenses rose by 6% in Q2, totalling €89.1m. Other operating expenses came to €22.6m, up 8%. Total sports rights were up a noteable 83% year-on-year, driven by Sportradar’s deals with the ATP and NBA, totalling €95.9m.
During the quarter
At the start of May, Sportradar appointed Behshad Behzadi as its CTO and CAIO. Later in the month, UTR Sports agreed to a long-term partnership with Sportradar, with the supplier’s data set to cover more than 20,000 Pro Tennis Tour matches. Among other things in the quarter, Sportradar also released new audio and digital out-of-home marketing technology to improve sports betting ads.
Quotes
On the results, Sportradar CEO Carsten Koerl said: “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 this quarter’s results, Sportradar has adjusted its outlook for its fiscal year results. It now predicts revenue for the year will total €1.07bn, up €10m from its previous prediction, up 22% year-on-year. Adjusted EBITDA is predicted to reach €204m, up by €2m from Sportradar’s previous outlook, also up 22%.
Sportradar expects an adjusted EBITDA margin of roughly 19%.
