Sportradar CEO Carsten Koerl has declared that 2024 is “off to a great start” after the Swiss sportstech reported growth across all business and geographic segments Q1.
In an update to its NASDAQ investors, Sportradar outlined total revenue of €265.9m, a 28% increase on €207.6m the year prior. This was accompanied by an increase in adjusted EBITDA of 29% from €36.7m to €47.2m.
The firm did struggle when it came to profit, however. Its profit of €6.8m turned into a loss of €0.6m year-over-year, a decline of 110%. This corresponds with an increase in costs, as purchased services and licensing expenses rose 35% to €65.2m, personal expenses were up 3% to €79.6m and total sports rights costs were up 78% to €90.9m.
These sports rights costs are a necessary expense for Sportradar’s business and growth ambitions. The firm noted that the renewal of its prominent partnerships with the NBA and ATP played a part in this, but also added that the costs fall in line with its 2024 expectations.
“Fiscal 2024 is off to a great start, building on the strong momentum and progress we made last year,” Koerl remarked.
“This quarter, we saw broad-based strength across our product portfolio including strong client adoption of our ATP and NBA product offerings. In light of our strong business fundamentals, we are raising our full year outlook and are commencing purchases under our share repurchase programme.
“I would also like to welcome to the leadership team Craig Felenstein as our Chief Financial Officer and Behshad Behzadi as our Chief Technology Officer and Chief AI Officer.”
Segment-by segment, revenue for the firm’s Betting Technology and Solutions division rose 35% from €162.6m to €218.8m, and 5% for its Sports Content, technology and Services division. Revenue for the latter segment stood at €47.1m (€45m).
This is where the necessity of the ATP and NBA rights costs comes into play. Sportradar’s Streaming and Betting Engagement income was up 46% to €26m, attributed by the firm to demand for its ATP content and growth in the US market.
The ATP deal, as well as premium pricing from the NBA, drove a 29% increase in Live Data and odds revenue to €19m. Lastly, Managed Betting Services revenue was up 32% year-n-year and Marketing and Media Services revenue – part of the Sports Content, tech and Solutions division – was up 6% year-on-year.
Geographically, Sportradar divides its business into two segments. The first is the US, where revenue was up 65% from €39.7m to €65.5m, and secondly is Rest of World, where revenue was up 19% from €167.9m to €200.4m.
The latter half of Q1 2024 saw Sportradar create an enhanced betting-related functionality with the NBA and renew its partnership with China’s CBA League. The quarter also saw the appointment of a new CFO and CTO, as noted by Koerl.
Looking ahead, Sportradar hopes to build a foundation for success throughout the rest of the year. Early Q2 saw the company sign its first new partner of the quarter in UTR Sports, focusing on data and streaming around the UTR Pro Tennis Tour.
Following 28% revenue growth in Q1, Sportradar has raised its guidance for the remainder of the year. The firm now expects full year YoY revenue growth of 21% to €1.060bn, alongside EBITDA of €200m, up 21% YoY, and an accompanying margin of around 19%.
