Sportradar positive of year outlook despite mounting operational costs
Sportradar AG has outlined confidence in achieving its full-year 2022 commercial and US growth objectives following a ‘fast start to year trading’.
Publishing its Q1 trading results (period ending 31 March), the Global Nasdaq-listed sportstech firm registered group revenues of €168m up 31% on corresponding 2021 results of €128m.
Period trading saw Sportradar register double-digit revenue growth across its core trading units of Betting Services, Audiovisual and North America business.
Managed Betting Services (MBS), a division of Sportradar Betting Services, increased its income by 51% to €26.5m due to upped demand for its live-odds services and value-added market provisions by sportsbook clients.
MBS income growth helped Betting Services register a 13% increase in EBITDA contribution to €44.6m, despite the unit recording a lower 51% operating margin due to temporary savings in sports rights accumulated during 2021 trading.
Increased demand by partners for NHL and Tennis Australia content saw Sportradar’s Audiovisual unit register a 17% increase in income to €46m. Despite registering growth, Audiovisual EBITDA remained flat at €9m as a result of higher sports media costs against 2021 pandemic comparatives.
Period trading saw Sportradar expand its North American services portfolio to include the sports data provisions of Synergy Sports for new and existing clients.
The firm’s North American unit doubled its income to €25.7m, benefitting from the continued expansion of clients across legalised US wagering states.
The North American unit registered operating losses of €8.9m (Q12021: €36.m), attributed to increased investment in Sportradar’s league and team solutions required to accelerate market growth.
“Our fiscal 2022 is off to a fast start, with core, high-margin betting products driving growth around the world,” commented Carsten Koerl, Founder and Group CEO of Sportradar AG. “Our US business continues its tremendous growth story as more states legalize and sports betting becomes live, mainstream entertainment.
“As the market leader, our technology and data-driven insights continue to transform the converging media, entertainment and sports industries and fuel our consistent and long-term profitable growth story.”
Q1 EBITDA results dragged by 5% to €27m (Q12021: €28.2m) as Sportradar reported a corporate expenditure of €71m during the period.
Significantly, the sports technology firm outlined higher personal costs of €52m for new tech recruits across all departments, as “employee headcount increased by 620 to 3,075 full-time employees at the end of the first quarter of 2022”.
Further operating expenses increased by €5m to €19.5m compared with Q1 2021 trading, with costs “associated with being a public company, and the reversal of temporary COVID-19 related cost savings versus the prior year”.
Accounting for increased expenditures, Sportradar maintained profitability, declaring period profits of €2.3m (Q12021: €8.2m).
As stands, the company maintains its 2022 financial outlook, targeting an expected revenue in the range of €665-to-€700m, combined with an adjusted EBITDA range of €123-to-€133m.