Sportradar Reports Fourth Quarter and Full Year 2024 Results and Announces Agreement to Acquire IMG Arena and Its Strategic Portfolio of Global Sports Betting Rights

Full Year 2024 Highlights

   -- Revenue increased 26% to EUR1,107 million 
 
   -- Profit for the period of EUR34 million was in-line with prior year 
 
   -- Adjusted EBITDA1 increased 33% to EUR222 million and Adjusted EBITDA 
      margin1 expanded to 20.1% 
 
   -- Net cash from operating activities increased 36% to EUR353 million and 
      Free cash flow1 increased 133% to EUR118 million 
 
   -- Customer Net Retention Rate1 increased to 127% 
 
   -- Implemented $200 million share repurchase plan and purchased $20.3 
      million under the plan 
 
   -- Exceeded full year guidance for both revenue and Adjusted EBITDA 
 
   -- Acquired affiliate marketing assets of XLMedia PLC 

Fourth Quarter 2024 Highlights

   -- Revenue increased 22% to EUR307 million 
 
   -- Loss for the period of EUR1 million primarily due to foreign currency 
      fluctuations 
 
   -- Adjusted EBITDA1 increased 53% to EUR61 million and Adjusted EBITDA 
      margin1 expanded to 19.7% 
 
   -- Net cash generated from operating activities increased 57% to EUR82 
      million and Free cash flow1 decreased to a use of EUR4 million primarily 
      due to the timing of sport rights payments 
 
   -- Repurchased $5.7 million of shares under the share repurchase plan 

ST. GALLEN, Switzerland, March 19, 2025 (GLOBE NEWSWIRE) -- Sportradar Group AG (NASDAQ: SRAD) ("Sportradar" or the "Company"), a leading global sports technology company focused on creating immersive experiences for sports fans and bettors, today announced financial results for its fourth quarter ended December 31, 2024.

Carsten Koerl, Chief Executive Officer of Sportradar, said: "We are pleased with our strong execution in 2024, achieving record revenue, operating margins and free cash flow generation. Importantly, we continued to build on our key competitive advantages including enhancing the depth and breadth of our content portfolio and further innovating on our product offerings. On the content front, with the extension and expansion of our Major League Baseball partnership, we now have all our existing major rights locked in for an average of six years, providing us with great cost visibility. And with the announced agreement to acquire IMG ARENA's sports rights portfolio, we will further enhance our sports coverage in some of the most bet on sports globally. This past year we also grew our product offering, launching a number of award-winning products that expand our best-in class product suite and bring fans closer to their favorite sports. Importantly, as we grow our topline, we are at an inflection point for multi-year margin expansion and increasing cash flow, positioning us to deliver meaningful shareholder value for years to come."

FOURTH QUARTER AND FULL YEAR REVENUE BY PRODUCT GROUP

Revenue

 
                      Three-Month Period Ended                   Year Ended 
                            December 31,                         December 31, 
                 ----------------------------------  ----------------------------------- 
in EUR 
thousands 
(unaudited)       2024     2023    Change      %       2024      2023    Change     % 
--------------   -------  -------  -------  -------  ---------  -------  ------- 
Revenue by 
product 
  Betting & 
   Gaming 
   Content       191,783  147,747  44,036    30%       707,119  530,099  177,020  33% 
  Managed 
   Betting 
   Services       55,145   55,870    (725)   (1)%      199,871  173,391   26,480  15% 
                 -------  -------  ------   ---      ---------  -------  ------- 
Betting 
 Technology & 
 Solutions       246,928  203,617  43,311    21%       906,990  703,490  203,500  29% 
 
  Marketing & 
   Media 
   Services       44,282   36,445   7,837    22%       146,919  126,629   20,290  16% 
  Sports 
   Performance    11,051   10,608     443     4%        40,366   39,758      608   2% 
  Integrity 
   Services        4,809    1,916   2,893   151%        12,281    7,744    4,537  59% 
                 -------  -------  ------   ---      ---------  -------  ------- 
Sports Content, 
 Technology & 
 Services         60,142   48,969  11,173    23%       199,566  174,131   25,435  15% 
                 -------  -------  ------   ---      ---------  -------  ------- 
Total Revenue    307,070  252,586  54,484    22%     1,106,556  877,621  228,935  26% 
                 =======  =======  ======   ===      =========  =======  ======= 
 
Revenue by 
geography 
  Rest of World  232,298  199,738  32,560    16%       843,791  711,613  132,178  19% 
  United States   74,772   52,848  21,924    41%       262,765  166,008   96,757  58% 
                 -------  -------                    ---------  ------- 
Total Revenue    307,070  252,586                    1,106,556  877,621 
                 =======  =======                    =========  ======= 
 

FULL YEAR FINANCIAL RESULTS

Revenue

Total revenue for the full year was EUR1,107 million, up EUR229 million, or 26% year-over-year driven by 29% growth in Betting Technology & Solutions and 15% growth in Sports Content, Technology & Services.

Betting Technology & Solutions revenues of EUR907 million were up 29% year-over-year primarily driven by a 33% increase in Betting & Gaming Content benefiting from existing and new customer uptake of products and premium pricing from NBA and new ATP product offerings, as well as from overall strong U.S. market growth. Managed Betting Services of EUR200 million were up 15% driven by strong growth in Managed Trading Services from higher trading margins and increased betting activity from existing and new clients.

Sports Content, Technology & Services revenues of EUR200 million increased 15% year-over-year primarily driven by 16% growth in Marketing & Media Services with strength in both European and North American ad:s revenue, with a variety of sportsbooks investing in marketing campaigns during the year.

The Company generated strong revenue growth globally with Rest of World up 19% and the United States up 58%. As a percentage of total Company revenues, United States revenue represented 24% of total Company revenue for the full year as compared to 19% in the prior year due to continued market growth, additional customer uptake of our products and premium pricing.

Profit for the period

Profit for the full year was EUR34 million, in line with the prior year. The strong operating results were primarily offset by a foreign currency loss of EUR38 million for the full year compared to a EUR23 million gain last year, due to unrealized currency fluctuations associated with the U.S. dollar-denominated sport rights. The current year also included higher financing costs due primarily to our new ATP, NBA and Bundesliga partnership deals, as well as an income tax benefit of EUR11 million driven primarily by the recognition of deferred tax assets.

Adjusted EBITDA

Full year Adjusted EBITDA was EUR222 million, up EUR56 million, or 33% compared to EUR167 million in the prior year. The increase was largely driven by the 26% revenue growth, partially offset by increased sport rights costs primarily related to the NBA and ATP partnership deals, higher purchased services driven by investments in developing our product portfolio and increased personnel expenses primarily due to headcount growth and a higher bonus accrual in the current year.

FOURTH QUARTER FINANCIAL RESULTS

Revenue

Total revenue for the fourth quarter was EUR307 million, up EUR54 million, or 22% year-over-year driven by 21% growth in Betting Technology & Solutions and 23% growth in Sports Content, Technology & Services.

Betting Technology & Solutions revenues of EUR247 million were up 21% year-over-year primarily driven by a 30% increase in Betting & Gaming Content benefiting from existing and new customer uptake of our products and premium pricing, led by the addition of new ATP content, as well as from overall strong U.S. market growth. Managed Betting Services revenues of EUR55 million were down 1% as strong growth in Managed Trading Services from higher trading margins and increased betting activity from existing and new clients was more than offset by the impact a year ago from the one-time initial setup revenues related to hardware deliveries for the new Taiwan Lottery deal.

Sports Content, Technology & Services revenues of EUR60 million increased 23% year-over-year primarily driven by 22% growth in Marketing & Media Services with strength in both European and North American ad:s revenue as several sportsbooks invested in marketing campaigns during the quarter.

The Company generated strong revenue growth globally with Rest of World up 16% and the United States up 41%. As a percentage of total Company revenues, United States revenue represented 24% of total Company revenue in the fourth quarter as compared to 21% in the prior year quarter due to continued market growth, additional customer uptake of our products and premium pricing.

Customer Net Retention Rate of 127% increased sequentially and from prior year demonstrating our ability to cross sell and up sell to our clients, as well as the market growth in the United States.

Loss for the period

Loss for the period was EUR1 million, down EUR24 million, compared to profit of EUR23 million in the same quarter a year ago, as the strong operating results were more than offset primarily by a foreign currency loss of EUR38 million in the quarter as compared to a EUR27 million gain last year, due to unrealized currency fluctuations mainly associated with the U.S. dollar-denominated sport rights. The current quarter also included higher financing costs due primarily to our new ATP and Bundesliga partnership deals, as well as an income tax benefit of EUR20 million driven primarily by the recognition of deferred tax assets.

Adjusted EBITDA

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March 19, 2025 07:00 ET (11:00 GMT)