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Sportradar Reports Strong Second Quarter 2023

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Delivered 23% revenue, 42% Adjusted EBITDA growth for first six months

On track to deliver record annual revenue

Annual outlook reaffirmed with growth of 24% to 26% for revenue and 25% to 33% for Adjusted EBITDA

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Sportradar Group AG (NASDAQ: SRAD), a leading global sports technology company focused on creating immersive experiences for sports fans and bettors, today announced financial results for its second quarter ended June 30, 2023.

“We are very proud of our strong performance during the first half of 2023 and remain on track to achieve the highest annual revenue in the company’s history,” the Chief Executive Officer for Sportradar, Carsten Koerl, said. “We hold a pivotal position in the global sports ecosystem and believe our talent, technology and diverse product offering positions us for strong future growth as we continue to execute against our strategic initiatives.”

Second Quarter 2023 Financial Highlights

  • Revenue in the second quarter of 2023 increased 22% to €216.4 million compared with the second quarter of 2022 with growth across all segments.
  • The company’s customer net retention ratio (NRR) remained at 120% in the second quarter of 2023 compared with the first quarter of 2023, demonstrating the company’s strength in cross selling and upselling to its clients.
  • Total profit from continuing operations, which included an €8 million one-time loss on disposal of an equity investment, decreased €22.8 million compared with the same quarter last year. The primary driver for the decrease was a net negative impact from foreign exchange rates. The company’s adjusted EBITDA1 for the same period increased 46% to €40.1 million compared with the second quarter of 2022, primarily due to strong revenue growth and higher operating leverage.
  • Total profit from continuing operations as a percentage of revenue for the second quarter of 2023 was 0% compared with 13% for the same quarter last year. Adjusted EBITDA margin1 was 19% in the second quarter of 2023, an increase of almost 300 bps compared with 16% in the prior year period.
  • As of June 30, 2023, Sportradar had total liquidity of €484 million including cash and cash equivalents of €264 million and an undrawn credit facility of €220 million.
Key Financial Metrics
Q2 Q2 Change
In millions, in Euros  2023 2022 %
Revenue 216.4 177.2 22%
Profit for the period from continuing operations 0.03 22.8 (100%)
Profit for the period from continuing operations as a percentage of revenue 0% 13%
Adjusted EBITDA1 40.1 27.6 46%
Adjusted EBITDA margin1 19% 16%
Net Retention Rate1 120% 118%

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1 Non-IFRS financial measure; see “Non-IFRS Financial Measures and Operating Metrics” and accompanying tables for further explanations and reconciliations of non-IFRS measures to IFRS measures.

Recent Company Highlights

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Sportradar continued to deepen its relationships with United States operators including an expansion of its long-standing agreement with Caesars Entertainment, establishing the company as the official supplier of betting data from leagues including the NBA, MLB and NHL. The company’s recent signings demonstrate its commitment to delivering engaging experiences for its clients while effectively monetizing its league partnerships through the value-added creation of innovative products and solutions.

  • Sportradar was selected as the exclusive global betting partner by CONMEBOL, the governing body of ten national soccer associations in South America, to enhance the accessibility and engagement of South American football for a broader global audience.
  • Sportradar was appointed as the official technology partner by the Delhi Capitals. The new three-year partnership will provide innovative video technology to develop cricket talent. Sportradar continues to build relationships in emerging markets such as India with strong sports fan bases.
  • Sportradar organized its inaugural Elite Prep Basketball Tournament, the Sportradar Showdown, held in Las Vegas in July. The tournament brought together exceptional amateur basketball teams under the Under Amour Association, Adidas 3SSB and NBA Academy and showcased Sportradar’s Synergy technology, capturing extensive data throughout the tournament and offering valuable insights for the use of college coaches and NBA talent scouts.
  • The company won multiple awards in the second quarter. Sportradar was named Acquisition and Retention Partner of the Year by EGR North America, won the Live Betting and Gaming Product Award and the Sports Data Product Award from SBC North America, received the Live Streaming Supplier Award at the EGR B2B Awards and ORAKO Sportsbook solution was selected as Best Sports Betting Technology of the Year at the 2023 Sports Technology Awards.

Segment Information

RoW Betting

Segment revenue in the second quarter of 2023 increased by 20% to €114.1 million compared with the second quarter of 2022. This growth was driven primarily by increased sales of the company’s higher value-add offerings including MBS, which increased 25% to €41.1 million, as well as Live Odd and Live Data products that grew 19% year over year.

Segment Adjusted EBITDA1 in the second quarter of 2023 increased by 18% to €51 million compared with the second quarter of 2022. Segment adjusted EBITDA margin1 remained at 45% year over year.

RoW Audiovisual (AV)

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Segment revenue in the second quarter of 2023 increased by 25% to €49.6 million compared with the second quarter of 2022. Revenue growth was driven by the new CONMEBOL deal and growth in sales to new and existing customers.

Segment adjusted EBITDA1 in the second quarter of 2023 increased 26% to €16.4 million compared with the second quarter of 2022. Segment adjusted EBITDA margin1 remained at 33% year over year.

United States

Segment revenue in the second quarter of 2023 increased by 31% to €38 million compared with the second quarter of 2022. Results were primarily driven by growth of 105% collectively in betting and gaming and audiovisual products.

Segment adjusted EBITDA1 in the second quarter of 2023 was €5.4 million compared with a loss of (€5.5) million in the second quarter of 2022, indicating the strong improvement in operational leverage in the United States business model despite continuous investment. Segment adjusted EBITDA margin1 improved to 14% from (19%), compared with the second quarter of 2022.

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1 Non-IFRS financial measure; see “Non-IFRS Financial Measures and Operating Metrics” and accompanying tables for further explanations and reconciliations of non-IFRS measures to IFRS measures.

The tables below show the information related to each reportable segment for the three- and six-month periods ended June 30, 2022 and 2023.

Three Months Ended June 30, 2022
in €’000 RoW Betting RoW Betting AV United States Total reportable segments All other segments Total
Segment revenue 95,513 39,741 29,066 164,320 12,869 177,189
Segment Adjusted EBITDA 43,324 13,053 (5,498 ) 50,879 (4,899 ) 45,980
Unallocated corporate expenses(1) (18,427 )
Adjusted EBITDA1 27,553
Adjusted EBITDA margin1 45 % 33 % (19 %) 31 % (38 %) 16 %

 

Three Months Ended June 30, 2023
in €’000 RoW Betting RoW Betting AV United States Total reportable segments All other segments Total
Segment revenue 114,149 49,569 37,959 201,677 14,757 216,434
Segment Adjusted EBITDA 51,041 16,418 5,441 72,900 (2,560 ) 70,340
Unallocated corporate expenses(1) (30,238 )
Adjusted EBITDA1 40,102
Adjusted EBITDA margin1 45 % 33 % 14 % 36 % (17 %) 19 %

 

Six Months Ended June 30, 2022
in €’000 RoW Betting RoW Betting AV United States Total reportable segments All other segments Total
Segment revenue 182,250 85,664 54,733 322,647 22,418 345,065
Segment Adjusted EBITDA 87,942 21,987 (11,920 ) 98,009 (8,613 ) 89,396
Unallocated corporate expenses(1) (35,142 )
Adjusted EBITDA1 54,254
Adjusted EBITDA margin1 48 % 26 % (22 %) 30 % (38 %) 16 %

 

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Six Months Ended June 30, 2023
in €’000 RoW Betting RoW Betting AV United States Total reportable segments All other segments Total
Segment revenue 222,649 94,123 77,696 394,468 29,530 423,998
Segment Adjusted EBITDA 98,429 27,759 12,265 138,453 (5,707 ) 132,746
Unallocated corporate expenses(1) (55,973 )
Adjusted EBITDA1 76,773
Adjusted EBITDA margin1 44 % 29 % 16 % 35 % (19 %) 18 %

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Annual Financial Outlook

Sportradar reaffirmed its annual outlook range provided on March 15, 2023, for revenue and adjusted EBITDA1 for fiscal 2023 as follows:

  • Revenue in the range of €902.0 million to €920.0 million, representing growth of 24% to 26% over fiscal 2022.
  • Adjusted EBITDA1 in a range of €157.0 million to €167.0 million, representing 25% to 33% growth versus last year.
  • Adjusted EBITDA margin1 in the range of 17% to 18%.

Conference Call and Webcast Information

Sportradar will host a conference call to discuss the second quarter 2023 results today, August 9, 2023, at 8:00am 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.

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Slotegrator’s review of the first half of 2024 in iGaming: results & trends

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Since the beginning of 2024, content aggregator and solution provider Slotegrator has been analyzing case studies and conducting careful research. Why did the company choose this development path? What results have been achieved, and what can be expected in the future? It’s time to take a look at how 2024 is going — and maybe get a sneak peek at 2025.

Since the beginning of the year, Slotegrator has continued to actively present its new and updated solutions, like the company’s turnkey online casino platform and its key modules, including the KYC, BI, and Casino Builder modules, alongside many others. These modules are strategically designed to streamline online casino management, covering tasks like analyzing big data, assessing risks, and enhancing platform performance.

The modules have proven to be very effective, partially because they satisfy clients’ concrete needs. The primary sources of inspiration for these cutting-edge innovations are the company’s internal research and case studies of successful clients.

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According to Slotegrator’s internal research, clients reported that the integration of these updates came at just the right time. Customers particularly valued the revamped player segmentation module, offering customization options and personalized marketing options, and a renewed anti-fraud module that utilizes a color-coded risk scale that allows operators to set risk levels.

“This feedback from our customers is a great foundation for Slotegrator’s future report on future iGaming trends in 2025. We’re constantly collecting and updating information on new technologies, game types, payment methods and player behavior, and honest feedback on the new features of upgrades helps us understand the direction of our future development,” comments Yana Khaidukova, managing director at Slotegrator.

Innovation is key to keeping up with the fast-paced iGaming industry. In 2024, the Slotegrator team is focused on enhancing product quality and publishing insightful case studies to better demonstrate the capabilities of its products. So far, Slotegrator has published multiple case studies analyzing its clients’ success. Here are the two latest examples:

 

When it comes to modern iGaming trends, many of them haven’t changed — we should expect to see more VR integration in esports, AI, blockchain, and cryptocurrency adoption. Also, mobile-first gameplay will be a new standard. The Slotegrator team has also noted an increasing emphasis on responsible gaming throughout the iGaming industry. Slotegrator keeps all of these in mind when entering attractive markets with new partners — especially those in Latin America and Asia.

 

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What about licenses? Slotegrator recommends keeping up to date with licensing conditions. Among the most promising jurisdictions are:

  • Kahnawake
  • The Isle of Man.
  • Anjouan

Faruk Aydin, Chief Revenue Officer of Revpanda, a Slotegrator’s media partner, adds to the list of trends some points about promotion on the iGaming industry: “Within the first half of 2024, we’ve seen that human-written content has made a great comeback, thanks to Google’s recent core update. It has started to remove AI-written shallow content across the entire SERPs, and the SEO community expects this trend to continue. Overall, we can say that the first half of the year strongly demonstrates Google’s effort to fill the SERPs with high-quality, engaging, local, and relevant content, avoiding fluff and providing the most useful resources to people.”

William Sarto, PR & Marketing specialist at CasinoRIX or CasinoRIX team, comments:

“In recent months, Google has undergone several significant changes due to a major update that started in March and ended in April. Then, at the beginning of May, they launched another big update. We’ve already seen many affiliate sites affected by this, particularly those that overused AI-generated content. AI has become mainstream, so it’s important to integrate it into processes based on thorough market analysis and real statistical data.

Moreover, there’s a clear trend towards creating projects that offer additional value for players and partners. It’s crucial to build a brand, not just a network of sites, and to add values into what you create while striving to meet customer needs. We fully agree with the earlier comments that in-depth analysis and staying in tune with trends will lead to success and growth. As we can see, all major and well-known projects are steadily growing with these updates.”

The post Slotegrator’s review of the first half of 2024 in iGaming: results & trends appeared first on European Gaming Industry News.

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NFTs and the future of fan engagement: How NFTs can boost engagement with sports brands

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By: Evgeniy Babitsyn, Chief Marketing Officer, Bets.io

The sport industry finds itself amidst its own digital transformation journey with the introduction of new technologies, and at the forefront of this digital shift are NFTs – otherwise known as Non-Fungible Tokens.

NFTs can represent any kind of digital item, and in recent years have commonly been used for quirky collectibles and art work – but they now enter the sports arena in a unique way. The beauty of NFTs is the unique metadata and ownership information which is tracked via blockchain, making them a one-of-a-kind digital collectible that cannot be duplicated. As a result of their collectible nature, it’s only natural that NFTs caught the eyes of eager sports enthusiasts and die-hard fans.

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In fact, according to Deloitte research, around 40% of Gen Z and millennial sports fans are at least somewhat familiar with the use of NFTs and fan tokens in sports.

But why is that? And how can they boost engagement?

NFTs are rapidly emerging as a powerful tool for sports brands in driving deeper fan engagement and unlocking new revenue streams. This is because sports fans are, by nature, competitive and eager to own exclusive content from their much loved players, teams and brands. They want to be part of the action.

By playing on this feeling, and reinforcing loyalty among fans in this way, sports brands have a huge opportunity to take their revenue streams to new heights and gain a competitive advantage over other brands.

Imagine an athlete releases a limited-edition NFT that represents the most iconic moment in their career, such as the winning shot or a record breaking performance. Fans who own that NFT can then access exclusive content related to that moment including behind-the-scenes footage or interviews.

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There really is no limit to these tokens, and depending on the asset, they can be much sought after. As more and more sports fans embrace the digital tokens, sports brands are quickly learning that there is huge potential for fan engagement, if they continue to innovate with this technology.

 

Taking collectibles to the 21st Century

Sports memorabilia and collectibles have for centuries been a way for fans to feel more connected to their favourite teams and athletes. And now thanks to the advances of technology – more specifically, blockchain technology – fans can collect within the digital realm, gaining access to truly “own” unique digital items and experiences.

Beyond just digital art or collectibles, NFTs can also integrate the idea of gamification, exclusive content and experiences into their NFTs – allowing fans to engage more actively while unlocking new revenue opportunities.

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The possibilities are endless, extending far beyond just digital collectibles. They can provide fans with access to exclusive digital or in-person experiences, events and merch as well. Think front row seats or the chance for a meet and greet post-game.

With this, NFTs provide an excellent way for brands to diversify their revenue streams by monetising their content and intellectual property strategically.

It really is win-win, fans can own a piece of their favourite team’s history while supporting their team financially. And sports brands can benefit from more loyal fans.

 

Transforming the fan experience

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Engagement is everything to sports brands. After all, the fans are really the most important stakeholders in the end. And offering NFTs can be a powerful tool in fostering deeper engagement within fan communities. NFTs provide more innovative ways for fans to connect, prove their loyalty and gain recognition for their allegiance.

Let’s look at NBA Top Shot. NBA Top Shot is the perfect example of a blockchain-based platform that allows fans to own and collect officially licensed NBA collectibles digitally. The platform offers exclusive collectibles including videos of the biggest NBA moments and highlights.

And football teams are also following suit. Manchester City, PSG, FC Barcelona have all joined in on the NFT hype – offering their own NFT collections for keen supporters such as worn jerseys, trophies and more.

 

Sports Betting and NFTs

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And when it comes to sports betting, NFTs take the iGaming experience to the next level. Fans can purchase NFTs that represent specific bets, such as the winner of a particular game or the performance of a specific player. These NFTs can then be traded or sold, just like other NFTs, providing a new level of flexibility and excitement for betting.

The use of NFTs in the sports industry is still in its early stages, but has already shown great potential. We can expect more applications to come in the world of sports – including at Bets.io. Watch this space.

Looking ahead, the future is incredibly promising for sports brands who leverage NFTs within their business operations. Those who embrace these new powerful ways to inspire fans and forge deeper relationships with their communities, will see their efforts translate into business value.

The post NFTs and the future of fan engagement: How NFTs can boost engagement with sports brands appeared first on European Gaming Industry News.

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Raketech Announces Q1 2024 Results

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Raketech has announced its Q1 2024 financial results.

Q1 2024 Financial Highlights

  • Revenues in Q1 of 2024 totaled EUR 19.0 million (EUR 15.8 million), reflecting an organic growth increase of 20.1% (24.4%), driven by continued strong performance from sub-affiliation partially offset by weaker-than-expected results within affiliation marketing.
  • EBITDA, adjusted for restructuring costs, was EUR 5.1 million (EUR 6.1 million), impacted by a weaker performance in Sweden compared to the previous year and soft performance of the Casumba assets following the Google Core update during the quarter. Other regions and products performed well, with sub-affiliation delivering a strong quarter in terms of EBITDA contribution.
  • Operating profit, adjusted for costs related to re-structuring, amounted to EUR 2.0 million (EUR 3.8 million).
  • Free cash flow before earnouts increased to EUR 6.5 million (EUR 5.6 million) with a positive working capital development from trade receivables.
  • Earnouts settled during the quarter amounted to EUR 13.0 million.

Full-Year Outlook

Current trading, including April, implies an adjusted EBITDA of around EUR 20.0 million for the full year. Free cash flow before earnouts for the full year is estimated to come in just below adjusted EBITDA.

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Subsequent Events After the End of the Period

On May 14, 2024, the board decided to withdraw its previously announced proposal to distribute dividends in 2024, in line with its commitment to maintaining financial flexibility and supporting the company’s long term growth ambitions. The primary focus is delivering value to shareholders and continuing to evaluate opportunities to enhance shareholder returns in a way that aligns with the Company’s long-term value-creation objectives.

Current Trading

Revenues in April 2024 amounted to EUR 5.9 million (EUR 5.9 million).

Raketech Acting CEO Johan Svensson said: “In the first quarter of 2024, we delivered EUR 19.0 million in revenues, representing an organic increase of 20.1%, primarily driven by Sub-affiliation. Adjusted EBITDA came in at EUR 5.1 million, while EBITDA was EUR 4.3 million, consistent with our trading update published on 1 May. We remain confident in our market-leading product offerings and see promising growth opportunities through our strategic initiatives in sports offerings, exclusive partnerships, and media deals. These efforts will position us well for continued growth in the coming years, and we remain committed to maximizing shareholder value.”

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The post Raketech Announces Q1 2024 Results appeared first on European Gaming Industry News.

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