Press Releases
Sportradar Reports Fourth Quarter and Full Year 2023 Results
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 and year ended December 31, 2023.
Carsten Koerl, Chief Executive Officer of Sportradar, said: “2023 was another dynamic and successful year for the Company delivering our 3rd consecutive year of more than 20% revenue growth, improved profitability, and margin expansion. We are pleased with our growth momentum, fueled by our best-in-class content portfolio, innovative product roadmap and technology capabilities. For 2024, we plan to continue to scale our business globally, targeting at least 20% growth in revenue and adjusted EBITDA. Given our market leadership and confidence in the long-term profitability and cashflow outlook for the Company, we have authorized a $200 million share buyback program. We remain laser focused on disciplined execution of our growth strategy and delivering tremendous value for our clients and our shareholders.”
Full Year 2023 and Recent Highlights, Annual Outlook
- Revenue for the full year of 2023 increased 20% to €877.6 million compared with the prior year, driven by 20% growth from Rest of World Betting and 30% growth from the U.S. Full year revenue was at the upper end of the Company’s 2023 annual outlook range of €870.0 million to €880.0 million.
- Total profit from continuing operations for the full year 2023 was €34.6 million compared with €10.5 million for the prior year. Adjusted EBITDA1 for the full year of 2023 increased 33% to €166.8 million compared with the prior year and was at the upper end of the Company’s 2023 annual outlook range of €162.0 to €167.0 million.
- Total Profit from continuing operations, as a percentage of revenue, for the full year 2023 was 4% compared with 1% for the prior year. Adjusted EBITDA margin1 for 2023 increased over 177 bps to 19% compared to 2022, primarily driven by strong operating leverage from sport rights and personnel costs.
- Cash and cash equivalents grew to €277.2 million as of December 31, 2023, and total liquidity available for use on December 31, 2023, including undrawn credit facilities was €497.2 million.
- Authorized a $200 million share buyback program given the confidence in the long-term outlook and ability to generate significant excess capital going forward.
- The Company reiterated that it expects to deliver at least 20% year-over-year growth in revenue and Adjusted EBITDA1 in fiscal 2024. Please see the “Annual Financial Outlook” section of this press release for further details.
Fourth Quarter 2023 Financial Highlights
- Revenue in the fourth quarter of 2023 increased 22% to €252.6 million compared with the fourth quarter of 2022 with growth across all segments.
- Total Profit from continuing operations for the fourth quarter of 2023 was €23.2 million compared to a loss of €33.3 million for the same quarter last year. The Company’s Adjusted EBITDA1 for the same period increased 13% to €39.5 million compared with the fourth quarter of 2022, primarily due to strong revenue growth.
- Total Profit from continuing operations, as a percentage of revenue, for the fourth quarter of 2023 was 9% compared with (16%) for the same quarter last year. Adjusted EBITDA margin1 was 16% in the fourth quarter of 2023, compared with 17% in the prior year period.
- The Company’s customer Net Retention Rate1 (NRR) was 111% in the fourth quarter of 2023, demonstrating the Company’s strength in cross selling and upselling to its clients.
- As of December 31, 2023, Sportradar had total liquidity of €497.2 million including cash and cash equivalents of €277.2 million and an undrawn credit facility of €220.0 million.
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1 Non-IFRS financial measure or operating metric; see “Non-IFRS Financial Measures and Operating Metric” and accompanying tables for further explanations and reconciliations of non-IFRS measures to IFRS measures.
| Key Financial and Operating Metrics | ||||||
| Q4 | Q4 | Change | FY | FY | Change | |
| In millions, in Euros € | 2023 | 2022% | 2023 | 2022% | ||
| Revenue | 252.6 | 206.3 | 22% | 877.6 | 730.2 | 20% |
| Profit (loss) for the period from continuing operations | 23.2 | (33.3) | 170% | 34.6 | 10.5 | 230% |
| Profit (loss) for the period from continuing operations as a percentage of revenue | 9% | (16)% | +2,530 bps | 4% | 1% | +251 bps |
| Adjusted EBITDA1 | 39.5 | 35.1 | 13% | 166.8 | 125.8 | 33% |
| Adjusted EBITDA margin1 | 16% | 17% | -136 bps | 19% | 17% | +177 bps |
| Net Retention Rate1 | 111% | 119% | -717 bps | 111% | 119% | -717 bps |
Recent Company Highlights
- Sportradar launched a landmark product suite, ATP Service+, as a result of the Company winning the ATP global betting and media data rights. Sportradar and ATP are now working together to drive the commercial growth of tennis and enhance fan engagement.
- Sportradar entered into agreements with NASCAR, the South American Football Confederation (CONMEBOL) and Bundesliga, Germany’s premiere soccer league, for exclusive global data rights.
- Sportradar extended agreements with BetMGM and Caesars Sportsbook for official NBA data. For the first time, Sportradar will provide these sportsbooks with products and services that leverage NBA optical tracking data as a result of its exclusive partnership with the NBA. This will enable sportsbooks to grow their proposition markets, same-game parlays, as well as in-play betting markets.
- Sportradar was selected by the Taiwan Sports Lottery Company, Ltd. to power its Sports Lottery with a customized omnichannel sportsbook and player management solution. As part of a consortium, Sportradar will operate the Sports Lottery through 2033 using the Company’s ORAKO end-to-end sportsbook and player account management system.
- Alpha Odds, Sportradar’s automated odds recalculation tool, launched delivering an average profit increase of 10% for clients in 2023.
- FanID, which connects rights holders and brands with sports fans launched as the first solution in the market with a data clean room to tackle the demise of third-party cookies.
- Sportradar received several industry recognitions, including Best Live Streaming Supplier at EGR B2B Awards 2023, Marketing & Services Provider of the Year at SBC Awards 2023 and Sports Betting Provider of the Year at Sigma Asia Awards 2023. Additionally, Sportradar was included on Business Insider’s “Leaders in AI 100” list.
Segment Information
RoW Betting
- Segment revenue in the fourth quarter of 2023 increased by 25% to €132.0 million compared with the fourth quarter of 2022. Growth was driven primarily by increased sales of the Company’s MBS solution, which grew 48% year over-year-as sports outcomes normalized and the contribution from the Taiwanese Sports Lottery Company. Our Live Odds Services also grew 21%.
- Segment Adjusted EBITDA1 in the fourth quarter of 2023 increased by 19% to €55.0 million compared with the fourth quarter of 2022. Segment Adjusted EBITDA margin1 decreased to 42% compared with the fourth quarter of 2022 mainly due to higher operating costs.
RoW Audiovisual (AV)
- Segment revenue in the fourth quarter of 2023 increased by 20% to €50.0 million compared with the fourth quarter of 2022. Revenue growth was driven by the addition of new CONMEBOL and NBA rights and uplift to services to existing and new clients.
- Segment Adjusted EBITDA1 in the fourth quarter of 2023 was €11.2 million. Segment Adjusted EBITDA margin1 decreased to 22% from 28% compared with the fourth quarter of 2022 mainly due to increased sport right costs.
United States
- Segment revenue in the fourth quarter of 2023 increased by 28% to €52.7 million compared with the fourth quarter of 2022. Results were primarily driven by strong market performance, including initial contributions from our NBA deal and the uplift from selling additional services to new and existing clients.
- Segment Adjusted EBITDA1 in the fourth quarter of 2023 was a loss of €1.5 million compared with a profit of €4.3 million in the fourth quarter of 2022 due to the step-up costs of the new NBA deal. Segment Adjusted EBITDA margin12was (3%) compared with 11% in the fourth quarter of 2022.
Costs and Expenses
- Purchased services and licenses in the fourth quarter of 2023 increased by €9.5 million to €57.8 million compared with the fourth quarter of 2022, reflecting one-time set up costs for the Taiwan Lottery deal and higher investments in external development and product delivery costs. Of the total purchased services and licenses, approximately €9.8 million was expensed sport rights.
- Personnel expenses in the fourth quarter of 2023 increased 10% to €88.8 million, compared with the fourth quarter of 2022. The increase was driven by increased headcount and costs related to the Company’s strategic re-alignment initiatives.
- Other Operating expenses in the fourth quarter of 2023 decreased 30% to €24.4 million compared with the fourth quarter of 2022, primarily driven by non-recurring litigation costs that occurred in the fourth quarter of 2022.
- Total sport rights costs in the fourth quarter of 2023 increased by 51% to €75.1 million compared with the fourth quarter of 2023, primarily a result of the new NBA deal.
The tables below show the information related to each reportable segment for the three-month periods and years ended December 31, 2023, and 2022.
| Three Months Ended December 31, 2023 | ||||||||||||
| in €’000 | RoW Betting | RoW Betting AV | United States | Total reportable segments | All other segments | Total | ||||||
| Segment revenue | 132,007 | 50,042 | 52,739 | 234,788 | 17,798 | 252,586 | ||||||
| Segment Adjusted EBITDA | 55,037 | 11,156 | (1,532 | ) | 64,661 | 1,957 | 66,618 | |||||
| Unallocated corporate expenses2 | (27,077 | ) | ||||||||||
| Adjusted EBITDA1 | 39,541 | |||||||||||
| Adjusted EBITDA margin1 | 42 | % | 22 | % | (3 | %) | 28 | % | 11 | % | 16 | % |
| Three Months Ended December 31, 2022 | ||||||||||||
| in €’000 | RoW Betting | RoW Betting AV | United States | Total reportable segments | All other segments | Total | ||||||
| Segment revenue | 105,923 | 41,768 | 41,153 | 188,844 | 17,444 | 206,288 | ||||||
| Segment Adjusted EBITDA | 46,282 | 11,883 | 4,333 | 62,498 | (881 | ) | 61,617 | |||||
| Unallocated corporate expenses2 | (26,508 | ) | ||||||||||
| Adjusted EBITDA1 | 35,109 | |||||||||||
| Adjusted EBITDA margin1 | 44 | % | 28 | % | 11 | % | 33 | % | (5 | %) | 17 | % |
| Year Ended December 31, 2023 | ||||||||||||
| in €’000 | RoW Betting | RoW Betting AV | United States | Total reportable segments | All other segments | Total | ||||||
| Segment revenue | 466,823 | 182,196 | 165,512 | 814,531 | 63,090 | 877,621 | ||||||
| Segment Adjusted EBITDA | 209,562 | 52,211 | 18,893 | 280,666 | (6,328 | ) | 274,338 | |||||
| Unallocated corporate expenses2 | (107,538 | ) | ||||||||||
| Adjusted EBITDA1 | 166,800 | |||||||||||
| Adjusted EBITDA margin1 | 45 | % | 29 | % | 11 | % | 34 | % | (10 | %) | 19 | % |
| Year Ended December 31, 2022 | ||||||||||||
| in €’000 | RoW Betting | RoW Betting AV | United States | Total reportable segments | All other segments | Total | ||||||
| Segment revenue | 389,092 | 160,522 | 127,442 | 677,056 | 53,132 | 730,188 | ||||||
| Segment Adjusted EBITDA | 182,439 | 46,494 | (4,141 | ) | 224,792 | (13,348 | ) | 211,444 | ||||
| Unallocated corporate expenses2 | (85,598 | ) | ||||||||||
| Adjusted EBITDA1 | 125,846 | |||||||||||
| Adjusted EBITDA margin1 | 47 | % | 29 | % | (3 | %) | 33 | % | (25 | %) | 17 | % |
2 Unallocated corporate expenses primarily consist of salaries and wages for management, legal, human resources, finance, office, technology and other costs not allocated to the segments.
Share Buyback Program
The Board of Directors has approved a $200 million share buyback program given the strong business fundamentals and confidence in the long-term profitability and cash flow outlook. The Company anticipates commencing purchases under the program when the next trading window opens, which is following the reporting of its Q1 2024 earnings results.
2024 Annual Financial Outlook
Sportradar is targeting fiscal 2024 outlook for revenue and Adjusted EBITDA1 as follows:
- Revenue of at least €1,050 million, representing year-on-year growth of at least 20%.
- Adjusted EBITDA1 of at least €200 million, representing year-on-year growth of at least 20%.
- Adjusted EBITDA margin1 of approximately 19%.
- Guidance assumes a Euro to USD exchange rate of 1.07.
Conference Call and Webcast Information
Sportradar will host a conference call to discuss the fourth quarter 2023 results today, March 20, 2024, at 8:00 a.m. Eastern Time. Those wishing to participate via webcast should access the earnings call through Sportradar’s Investor Relations website. An archived webcast with the accompanying slides will be available at the Company’s Investor Relations website for one year after the conclusion of the live event.
ESL FACEIT Group (EFG), the leading esports and video game entertainment company, and DreamHack, a leading global gaming festival, have announced a full slate of esports programming for DreamHack Dallas, taking place the weekend of May 31-June 2, 2024, at the Kay Bailey Hutchison Convention Center.
One of DreamHack’s longest-running North American gaming festivals, DreamHack Dallas features everything gaming under one roof. From the world-famous bring-your-own-computer (BYOC) LAN party, panels, and an expo, to art, cosplay, creator meet-and-greets, and much more, DreamHack Dallas offers attendees a great variety of activities for an unforgettable experience. Furthermore, the festival will host 13 unique esports competitions – including iconic titles like Counter-Strike 2, Overwatch, StarCraft® II, and more to come – with over $1 million in total prizing.
For the first time, several DreamHack Dallas esports events – including competitions in EA SPORTS FC 24, Tekken 8, Street Fighter 6, and more – will offer aspiring competitors the chance to qualify for this summer’s debut Esports World Cup. With new pipelines to a $60 million prize pool and a global audience in Riyadh, DreamHack is offering more opportunities than ever for grassroots talent to fight their way to the world stage.
“Esports has been part of the fabric of DreamHack Dallas since the festival’s inception, and we’re excited once again to welcome tens of thousands of fans this summer to celebrate their favorite competitive titles,” said Shahin Zarrabi, Vice President, Festivals, ESL FACEIT Group. “From the 100th IEM event to the first-ever OWCS live event and qualifiers for Esports World Cup, DreamHack is celebrating every type of gamer, from world-class competitors to the next breakout stars.”
Dallas Hosts 16 Top Counter-Strike 2 Squads for 100th IEM Event
The birthplace of North American Counter-Strike esports will invite 16 of the world’s best teams to clash in Intel® Extreme Masters (IEM) Dallas, the 100th IEM event. With an ESL Pro Tour (EPT) Masters trophy, $250,000 in prizing, and qualification to an EPT Championship up for grabs, fans will watch as hometown heroes challenge international hopefuls in the US’s biggest Counter-Strike event of the year.
Overwatch Luminaries Assemble for First-Ever International Live Event for OWCS
The first-ever in-person Major tournament of Blizzard Entertainment and EFG’s Overwatch Champions Series invites eight of our competitive region’s top teams for a three-day showcase of industry-class talent. Featuring a prize pool supported by crowdfunding, fans can watch the action unfold live – or at home with the official broadcast or partnered co-streams – as teams face off to be the first team to claim an international OWCS title and qualify to compete at Esports World Cup.
ESL Impact Returns to DreamHack Dallas with $123K Season Finale
ESL Impact, a global all-women Counter-Strike circuit, returns to DreamHack Dallas for the exciting conclusion of Season 5 of competition. Eight of the world’s best women’s Counter-Strike teams representing North America, Europe, South America, and Asia will face off to see who will claim the title and the lion’s share of the $123,000 prize pool.
ESL Pro Tour in StarCraft® II Makes Masters Stop at DreamHack Dallas
The EPT in StarCraft® II, the title’s premier global esports circuit, continues with the ESL SC2 Masters: Spring 2024 Finals at DreamHack Dallas. Not only will competitors battle for their share of the $100,000 prize pool, but the opportunity to qualify for StarCraft® II competition at this summer’s inaugural Esports World Cup.
EA SPORTS FC 24 at DreamHack Dallas Kicks off Esports World Cup Qualifications
Electronic Arts’ soccer title, EA SPORTS FC 24, comes to DreamHack Dallas for the first time this summer with a world-class tournament. With the top two players securing their spot at Esports World Cup this August, the competition offers up to 250 competitors their first opportunity to qualify for EWC, in addition to $100,000 USD in total prizing.
Fighting Games take Center Stage with New DreamHack Fighters, Esports World Cup Tournaments
DreamHack’s marquee fighting game hub, DreamHack Fighters, brings six open tournaments to Dallas, including a mix of modern mainstays and FGC classics. Open to all registered attendees, competitors can face off to claim a slice of the $16,000 total prize pool. Participating titles include:
- Super Smash Bros. Ultimate – Singles ($5,000)
- UNDER NIGHT IN-BIRTH II Sys:Celes (UNI 2) ($2,500)
- Granblue Fantasy Versus: Rising ($2,500)
- Guilty Gear Strive ($2,500)
- Mortal Kombat 1 ($2,500)
- Super Smash Bros. Ultimate – Doubles ($1,000)
For the first time, DreamHack will also host competitions in Tekken 8 and Street Fighter 6, which include the chance to qualify for Esports World Cup. Both tournaments offer $50,000 in prizing each, as well as pipelines to compete on some of the titles’ biggest stages in Riyadh this summer.
Kambi has during the period 13 May to 17 May 2024 (the “Buyback Period”) repurchased a total of 92,000 ordinary B shares (ISIN: MT0000780107) at a volume-weighted average price of 104.89 SEK as part of the Programme. From the beginning of the Programme, which started on 18 March, until and including 17 May 2024, Kambi has repurchased a total of 479,086 ordinary B shares at a volume-weighted average price of 96.49 SEK per share.
The objective of the Programme was to achieve added value for Kambi´s shareholders and to give the Board increased flexibility with Kambi´s capital structure by reducing the capital. The Programme was carried out in accordance with the Maltese Companies Act, the EU Market Abuse Regulation No 596/2014 (“MAR”), Commission Delegated Regulation (EU) No 2016/1052 (“Safe Harbour Regulation”) and other applicable rules.
During the Buyback Period, Kambi has repurchased shares as follows:
| Date | Aggregated daily volume (number of ordinary B shares) |
Weighted average share price per day (SEK) |
Total daily transaction value (SEK) |
| 13 May 2024 | 20,000 | 105.08 | 2,101,612 |
| 14 May 2024 | 25,000 | 107.22 | 2,680,383 |
| 15 May 2024 | 30,000 | 104.99 | 3,149,601 |
| 16 May 2024 | 15,000 | 101.23 | 1,518,519 |
| 17 May 2024 | 2,000 | 99.98 | 199,958 |
All acquisitions have been carried out on Nasdaq First North Growth Market in Stockholm by Carnegie Investment Bank AB on behalf of Kambi. Following the acquisitions and as of 17 May 2024, Kambi’s holding of its own shares amounted to 1,374,678 and the total number of issued shares in Kambi is 31,278,297 ordinary B shares. Under the Programme Kambi was authorised to repurchase a maximum of 3,127,830 ordinary B shares, up to a maximum amount of €4.0 million.
The post Kambi Group plc completes share buyback programme initiated on 18 March 2024 appeared first on European Gaming Industry News.
NuxGame, the experienced betting and iGaming software provider, has integrated the CRM system Solitics into its platform, scaling up its automation, data processing and analytics reporting.
Solitics, a powerful CRM tool, collects real-time data from multiple sources providing a comprehensive view of player activities. This integration enables NuxGame customers to utilise advanced tools for creating intelligent user journeys and personalised content, boosting player engagement and improving customer retention.
The collaboration with Solitics optimises NuxGame’s platform functionality, boosting player satisfaction and driving business growth for its operator partners.
NuxGame has continued to broaden its platform capabilities recently through recent deals with Jumio and Apcopay, which have helped enhance its service as it continues to deliver a robust, scalable and comprehensive offering.
With its commitment to staying ahead of the tech curve, gamification tools have also been a key focus for NuxGame. It has boosted its platform with features such as PVP Battles, a points system, player tournaments, free spins, live stream promotions and leaderboards.
Denis Kosinsky, Chief Operating Officer at NuxGame, said: “Through our strategic partnership with Solitics, we are reshaping how our operators engage with players by utilising live data feeds for informed decision-making and enhanced engagement strategies.
“In today’s competitive market, leveraging personalisation and real-time analytics is crucial for driving player retention and maximising return on investment.”
The post NuxGame bolsters personalisation capabilities with Solitics partnership appeared first on European Gaming Industry News.
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