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Sportradar Reports Strong Growth in Second Quarter 2022 and Increases Its Revenue Outlook for Fiscal 2022 Projecting Revenue Growth of 24% to 27%

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Sportradar Group AG, the leading global technology company enabling next generation engagement in sports, and the number one provider of business-to-business solutions to the global sports betting industry, today announced financial results for its second quarter ended June 30, 2022.

Second Quarter 2022 Highlights

  • Revenue in the second quarter of 2022 increased 23% to €177.2 million ($186.0 million)1 compared with the second quarter of 2021, driven by strong growth across all business segments. In particular, U.S. segment revenue grew by 66% to €29.1 million ($30.5 million) compared with the second quarter of 2021.
  • Adjusted EBITDA2 in the second quarter of 2022 decreased 13% to €27.6 million ($28.9 million)1 compared with the second quarter of 2021 primarily due to costs associated with additional organic and inorganic headcount growth and new and renewed sport rights contracts and the impact of the Russia/Ukraine conflict.
  • Adjusted EBITDA margin2 was 16% in the second quarter of 2022, compared with 22% over the prior year period.
  • Adjusted Free Cash Flow2 in the second quarter of 2022 increased to €35.7 million, compared to negative Adjusted Free Cash Flow of €2.3 million for the prior year period. The resulting Free Cash Flow Conversion2 was 129% in the quarter.
  • Net Retention Rate2, based on the last twelve months, was strong at 115% at the end of the second quarter of 2022 highlighting the continued success of the Company’s cross-sell and upsell strategy across its global customer base. For second quarter 2021, the Net Retention Rate was 120%.
  • Cash and cash equivalents totaled €715.6 million as of June 30, 2022. Total liquidity available for use on June 30, 2022, including undrawn credit facilities, was €825.6 million.
  • In July 2022, Sportradar prepaid €200.0 million principal amount of its €420.0 million senior secured term loan Facility B. Significant cash flow generation has allowed the Company to reduce its debt while maintaining flexibility for acquisitions and additional investment in technology and products.
  • The Company upgraded its previously provided annual outlook for full-year 2022 for revenue and maintained its outlook for Adjusted EBITDA2. Please see the “Annual Financial Outlook” section of this press release for further details.
Key Financial Measures Q2 Q2 Change
In millions, in Euros 2022 2021 %
Revenue 177.2 143.6 23%
Adjusted EBITDA2 27.6 31.6 (13%)
Adjusted EBITDA margin2 16% 22%
Adjusted Free Cash Flow2 35.7 (2.3)
Free Cash Flow Conversion2 129% (7)%

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1 For the convenience of the reader, we have translated Euros amounts in the tables below at the noon buying rate of the Federal Reserve Bank on June 30, 2022, which was €1.00 to $1.05.
2 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.

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Carsten Koerl, Chief Executive Officer of Sportradar said: “As the world’s leading provider of technology solutions to the sports betting industry, our Q2 revenue exceeded our expectations for the quarter, growing 23% year-over-year. Confident about the momentum we have built in our business, we are raising our revenue guidance for the year. Given our strong cash flow generation and demonstrated good stewards of our capital, we have also chosen to pay down about half of our outstanding debt. We remain as confident as ever in the leverage and scalability of our business, and our ability to deliver results in the face of global challenges and economic conditions.”

“Separately, our Chief Financial Officer, Alex Gersh, has decided that he will be leaving the company to accept another position in the United States where he will move with his family. I appreciate Alex’s many contributions to Sportradar and invite you to join me in wishing him well as he embarks on his next chapter. We have launched a search for a new CFO, and have named Ulrich Harmuth as interim CFO. Ulrich, who has been with the company since 2013, has served as Chief Strategy Officer since 2020 and has been a member of my management team overseeing corporate development activities, including M&A, strategic partnerships, and ventures. I am confident in Ulrich’s leadership to support Sportradar’s growth and the continued execution of our financial priorities.”

Segment Information

RoW Betting

  • Segment revenue in the second quarter of 2022 increased by 21% to €95.5 million compared with the second quarter of 2021. This growth was driven primarily by increased sales of our higher value-add offerings including Managed Betting Services (MBS) which increased 65% to €32.9 million and Live Odds Services, which increased 9% to €28.5 million. MBS growth was attributable to record turnover3 and Live Odds Services grew as a result of upselling content to existing customers. Additionally, increased content sales from last year’s Synergy Sports acquisition contributed to the growth in revenue.
  • Segment Adjusted EBITDA2 in the second quarter of 2022 decreased by 8% to €43.3 million compared with the second quarter of 2021. Segment Adjusted EBITDA margin2 decreased to 45% from 59% in the second quarter of 2021 driven by the impact of the Russia/Ukraine conflict, acquisition of new sport rights as well as temporary savings in sport rights and scouting costs in the prior year due to the COVID-19 pandemic.

RoW Audiovisual (AV)

  • Segment revenue in the second quarter of 2022 increased by 9% to €39.7 million compared with the second quarter of 2021. Growth was driven by new customers and traction with our Synergy Sports acquisition, offset by the impact of the Russia/Ukraine conflict.
  • Segment Adjusted EBITDA2 in the second quarter of 2022 increased 22% to €13.1 million compared with the second quarter of 2021. Segment Adjusted EBITDA margin2 increased to 33% from 29% compared with the second quarter of 2021 primarily due to lower sports rights costs.

United States

  • Segment revenue in the second quarter of 2022 increased by 66% to €29.1 million compared with the second quarter of 2021. This growth was driven by increased sales of U.S. Betting services primarily as a result of new states legalizing betting. We also experienced growth from increased sales to media companies and a positive impact from the acquisition of Synergy Sports.
  • Segment Adjusted EBITDA2 in the second quarter of 2022 was (€5.5) million compared with the second quarter of 2021 of (€4.6) million, primarily due to increased investment in the Company’s league and team solutions focused business. Segment Adjusted EBITDA margin2 improved to (19%) from (27%) compared with the second quarter of 2021 reflecting an improvement in the U.S. segment operating leverage.

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2 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.
3 Turnover is the total amount of stakes placed and accepted in betting.

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Costs and Expenses

  • Purchased services and licenses in the second quarter of 2022 increased by €10.6 million to €43.2 million compared with the second quarter of 2021, primarily resulting from increased costs of content creation and processing.
  • Personnel expenses in the second quarter of 2022 increased by €17.6 million to €64.4 million compared with the second quarter of 2021 primarily resulting from additional organic and inorganic hires in the Company’s product and technology organizations. Employee headcount increased by 789 (of which 354 were inorganic) to 3,520 full-time employees at the end of the second quarter of 2022 compared with the second quarter of 2021.
  • Other Operating expenses in the second quarter of 2022 remained substantially unchanged at €21.2 million.
  • Total Sport rights costs in the second quarter of 2022 increased by €13.8 million to €48.7 million compared with the second quarter of 2021, primarily a result of new acquired rights in 2022 for the NHL, UEFA, ATP and a normalized schedule in many sports, including the NBA, as COVID-19 pandemic restrictions eased.

Recent Business Highlights

  • In July 2022, Sportradar repaid €200 million principal amount of its €420 million senior secured term loan Facility B. Continued revenue growth and our strong liquidity position enabled the Company to prepay a portion of the outstanding term loan and the Company has confidence that future cash flow generation will allow it to invest in the business and take advantage of market opportunities as they arise.
  • Sportradar partners with Turkish Basketball Federation on comprehensive rights deal. Encompassing the first-tier Turkish Basketball Super League (BLS), the second-tier Turkish Basketball First League (TBL) and all cup competitions, Sportradar will have (i) international rights to all BSL and TBL games starting with the 2023 season and (ii) domestic rights beginning in the 2024-2025 season. The partnership includes a comprehensive set of Sportradar solutions including Universal Fraud Detection Systems, Synergy Automated Camera Systems, and AI video capture technology in 27 venues in Turkey.
  • Sportradar launches Athlete Wellbeing. This global program was developed for leagues and federations, teams, and collegiate governing bodies to help support athletes’ and reduce the potential impact of sports betting on their mental health. This program will offer a comprehensive curriculum including on-demand virtual sessions, pre-recorded webinars and in-person workshops.
  • Sportradar bolster’s cricket offering with launch of world’s first virtual cricket in-play solution. Modeled on the popular T20 cricket format, Sportradar brings hyper-real 3D animation with over 400 million unique game situations. With over 2.5 billion cricket fans worldwide, our solution offers over 3.8 billion unique video seconds featuring the top eight teams from India’s leading T20 competition.
  • Sportradar to deepen fan engagement for groupe FDJ with launch of automated near-live short-form video content. Our company is providing ParionsSport en ligne, the French operator FDJ’s online sports betting activity, with an artificial intelligence driven, near-live premium sports video content offering to create deeper engagement with the sports betting service’s customer base of sports fans.

Annual Financial Outlook

Sportradar is upgrading its revenue outlook and reiterating its Adjusted EBITDA outlook for fiscal 2022 as follows:

  • Sportradar is upgrading its revenue outlook for fiscal 2022 from its previous range of €665.0 million to €700.0 million ($698.3 million to $735.0 million) 1 to a new range of €695.0 million to €715.0 million ($729.8 million to $750.8 million), representing prospective growth of 24% to 27% over fiscal 2021.
  • Adjusted EBITDA2, impacted by the Russia/Ukraine conflict, is expected to remain in the range of €123.0 million to €133.0 million ($129.2 million to $139.7 million)1, representing growth of 21% to 30% over fiscal 2021.
  • Adjusted EBITDA margin2 is expected to be in the range of 17% to 19%.
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7777 gaming signs a strategic iLottery content deal with Scientific Games

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7777 gaming, a leading provider of digital gaming solutions, has announced a significant strategic partnership with Scientific Games a global leader in retail and digital lottery games, technology, analytics and services, to deliver digital lottery games through the SG Content Hub Partner Program.

The SG Content Hub Partner Program is a unique platform and game content partnership program featuring an expanding, highly curated selection of iLottery games from best-in-class, game studios worldwide in a variety of play styles appealing to all player types in multiple languages, as well as access to select licensed properties from the largest licensed brands portfolio in the lottery industry. Scientific Games currently serves 150 lotteries in 50 countries.

 

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Elena Shaterova, Chief Commercial Officer at 7777 gaming, expressed enthusiasm about the partnership: “Partnering with Scientific Games represents a significant milestone for 7777 gaming, solidifying our position as a global leader in digital lottery solutions. Through this collaboration, we are poised to deliver unparalleled gaming experiences to players worldwide, driving innovation and growth in the lottery industry.”

 

Steve Hickson, VP of Digital Games at Scientific Games commented: “We are delighted to welcome yet another top-class lottery game studio to the SG Content Hub Partner Program. The addition of 7777 gaming and their fantastic games aligns perfectly with our goal to make a variety of digital lottery content available to existing and new Scientific Games customers. Our SG Content Hub Partner Program is developing at pace as we continue to provide our customers with frictionless access to the very best content in the industry.”

The SG Content Hub Partner Program offers a one-stop solution for accessing multiple iLottery game studios, seamlessly integrating with a lottery’s existing gaming systems and iLottery technology. It streamlines operations, simplifies tech integrations, and enhances data analytics to drive game development and iLottery portfolio management.

7777 gaming is renowned for its ability to deliver high-quality iLottery games tailored to the unique requirements of different lotteries. The company ensures that its game content meets stringent government regulations and operators’ expectations for customization. With custom-made lottery concepts, 7777 gaming guarantees enhanced player satisfaction and fosters a deeper sense of connection and loyalty to the brand.

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The post 7777 gaming signs a strategic iLottery content deal with Scientific Games appeared first on European Gaming Industry News.

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Atlas-IAC’s CEO Maxim Slobodyanyuk Talks Winning Strategies & Vision for Future Growth in the iGaming Sector

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Atlas-IAC, a Next-Generation iGaming platform, has been recognized as the Best Sports Betting Provider Of The Year and Rising Star In Sports Betting Technology  at the Prague Gaming & Tech Awards 2024. The GamingTECH Awards annually  determine industry excellence in Central and Eastern Europe. Maxim Slobodyanyuk, CEO of Atlas-IAC, tells about insights into Atlas-IAC’s innovative solutions that are reshaping the iGaming landscape and the core principles of partnership driving mutual evolution for both Atlas-IAC and its esteemed operators.

 

Congratulations on winning “Best Sports Betting Provider Of The Year” and “Rising Star In Sports Betting Technology” at the GamingTECH CEE Awards 2024! How does Atlas-IAC feel about receiving such prestigious recognition?

We take pride in being acknowledged as the best sports betting provider and the rising star in sports betting technology across Central and Eastern Europe. At the heart of our success lies a team of exceptional visionaries, developers, and business analytics  striving to elevate the industry to new heights of technological innovation and responsible gaming practices.

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I’d like to thank our great partners for choosing Atlas-IAC as their technology provider, and for subscribing to our core business principle — to evolve and grow together. Our win is our partners’ win as well.

To be the best sports betting provider entails a weighty responsibility, one we approach with unwavering dedication. These awards serve as a validation of our unwavering commitment to excellence and as a catalyst for renewed determination to shape the future of sports betting technology. We are grateful for recognition and remain resolutely committed to charting new horizons of success alongside our valued partners.

 

Could you provide insights into the strategies that drove Atlas-IAC’s success in the iGaming industry?

At Atlas-IAC, our success strategy revolves around building strong partnerships and establishing a notable presence in the competitive global entertainment technology market. We prioritize automation, which gives us an edge in emerging markets and allows us to onboard partners quickly and streamline operations.

Continuously improving our platform to offer a seamless Sportsbook API experience is a priority. Our aim is to deliver fast performance, smooth betting experiences, real-time risk management, advanced anti-fraud measures, and scalable solutions for partners worldwide.

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Staying up-to-date, enhancing our product, analyzing market and partner needs, and proactively responding to them are essential. Being the top technological partner is a strategy that consistently works for us.

 

How does Atlas-IAC’s in-house developed Sportsbook differentiate itself from competitors?

Atlas-IAC’s in-house developed Sportsbook sets us apart because we have full control over its features and can make rapid improvements. Features like Personal Odds Boost and Clever Margin allow for customized experiences tailored to our partners’ needs. We focus on personalization, ensuring the product aligns perfectly with each operator’s requirements. With a skilled team dedicated to our partners’ needs, we can promptly address requests and deliver effective solutions.

 

Atlas-IAC offers one of the most automated Sportsbook available in the market. How does automation enhance the experience for both operators and users?

Our fully automated Sportsbook API is efficient and user-friendly, enhancing engagement and retention. It’s equipped to handle high demand periods effectively and offers tools for precise betting management and reliable results. We can swiftly develop and integrate custom modules for partners, giving us a competitive edge. We prioritize meeting partners’ needs while delivering enjoyable experiences for players, fostering mutual benefit for all involved.

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What specific features or tools have been well-received by operators in the iGaming industry?

In the realm of iGaming, Atlas-IAC has garnered recognition for its remarkable adaptability and keen responsiveness to the requirements of our partners. Understanding the distinctive needs of each operator, we have crafted a tailored approach to ensure effective solutions.

One specific example of our successful tools is our Cashback feature, which serves as a versatile tool for promoting sporting events and enhancing player entertainment. This feature offers customizable settings based on specific sports, events, odds criteria, and frequency. With such flexibility, operators can effectively incentivize participation and elevate excitement levels among players.

In essence, the suite of features and tools offered by Atlas-IAC not only addresses the diverse needs of operators but also fuels engagement and growth within the iGaming industry.

 

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What are Atlas-IAC’s goals for continued innovation and growth in the iGaming sector?

Looking ahead, our primary aim is to continually push the boundaries of innovation while delivering outstanding value to our partners. We remain steadfast in our commitment to leading the charge in the iGaming sector, fostering sustainable growth, and championing responsible gaming practices. Our strategy revolves around staying agile, adapting to emerging trends, and catering to the unique needs of operators worldwide.

The evolving sports betting landscape of 2024 underscores the critical importance of adaptability and innovation. Operators must navigate this dynamic environment marked by technological advancements and regulatory shifts, and Atlas-IAC stands ready to assist them in this endeavor.

In terms of market focus, we are meticulously evaluating opportunities in LATAM, Eastern Europe, South-East Asia, and Africa. These regions offer significant growth potential, and our tailored strategy is geared towards effectively meeting the unique demands of these diverse markets.

The post Atlas-IAC’s CEO Maxim Slobodyanyuk Talks Winning Strategies & Vision for Future Growth in the iGaming Sector appeared first on European Gaming Industry News.

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How to avoid failing at affiliate marketing in 2024?

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The evolving landscape of affiliate marketing within the iGaming ecosystem presents both opportunities and challenges due to regulatory shifts. Adapting to these changes is crucial to navigate the dynamic environment effectively. Slotegrator experts exploring strategies to avoid pitfalls globally and adopting adaptable approaches can optimize affiliate marketing amidst evolving regulations.

The iGaming industry has had to focus on a number of changes in the area of affiliate marketing –  as a result of regulatory and advertising changes.

Beyond that, it’s important to keep in mind another important key initiatives that include key components of a successful affiliate program:

  • The quality of the content the affiliate creates.
  • Regulations the affiliate or affiliate program might be subject to.
  • This is especially important if the affiliate expects a commission for every sign-up. If the affiliate is getting paid for every player they send your way, the players need to stay for a while for it to be worth it.
  • An ongoing analysis of the size and quality of traffic the affiliate is delivering you.

To know more about these points you can read an instruction from the Slotegrator Academy by link.

The changes have not only affected the regulatory environment of the iGaming industry, but also affiliate marketing as a result of the general changes. What is important to look out for?

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Slotegrator shares some regional specifics of affiliate marketing:

  • Asia is a diverse and dynamic region for affiliate marketing in the iGaming industry. Affiliates operating in Asia have to navigate complex regulatory conditions and varying cultural attitudes. Marketing managers have to employ strategies that prioritize mobile channelization, collaboration with opinion leaders, and compliance with local laws — all of which are essential to success.
  • Affiliate marketing in Africa is still in its early stages but is already showing significant potential. With the increasing availability of the internet and the spread of smartphones, the continent is opening up opportunities for affiliates to reach a fast-growing market. However, factors such as regulatory uncertainty, payment processing difficulties, and the cultural diversity of the region need to be taken into account.
  • In Latin America working with local affiliates who have a deep understanding of the regional market helps to better customize marketing campaigns and achieve higher conversion rates. Given the strict regulation of gambling in some Latin American countries, it is important to comply with local laws and advertising restrictions to avoid negative consequences.
  • Affiliate marketing in Europe is a dynamic and competitive landscape where effective strategies and a professional approach can ensure significant business success and growth in the iGaming sector. One of the important parts of affiliate marketing in Europe is the use of a variety of channels to build audiences. It helps to diversify and increase the flow of traffic to the partner’s site, which helps to increase conversion rates. Careful research of each country’s rules and restrictions is needed regarding the advertising and promotion of gambling.

Alyce Fabel from CasinoRIX, Slotegrator’s media partner, summarizes key aspects for affiliate companies to concentrate on.“As each year passes, affiliates must strive to improve and keep pace with the market. Competition is growing, regulations are evolving, and that brings changes to many regions. We can highlight five key points for affiliate companies to focus on:

  • Continuously search for and acquire new traffic channels. It’s crucial not to focus only on one channel; diversification is necessary. This has been particularly evident in the past year, with significant changes and updates in SEO and mobile traffic (iOS/Android applications).
  • Ensure content quality. As AI tools continue to advance, it’s essential not only to learn to apply them in work but also to differentiate content written by humans from AI-generated content (especially crucial for SEO projects).
  • Configure deep analytics. Constantly work on improving traffic quality and understand where to make enhancements. The standards for traffic quality are rising.
  • Provide added value. It’s time to start developing the product aspect as well, thinking not only as an affiliate but also about providing customers with additional value. This will also help in achieving higher-quality marketing.”

Cultivate relationships with partners. Build strong and lasting relationships, stay informed about all industry changes and news, and keep up with technologies and innovations. This is crucial for achieving high results.

And some words about the affiliate marketing trends as a compass to guide development efforts in this area in the right direction. Khoren Ispiryan, sales manager at Slotegrator, and the speaker of the latest Prague Gaming & TECH Summit ‘24, shares some insights:

  • “The best thing is to include real people in the affiliate marketing. To create an environment where bloggers, streamers and influencers will make a bigger impact on the end user behavior.
  • In 2024, gambling companies will continue to partner with influencers and other internet celebrities. These partnerships will be increasingly effective methods of attracting new audiences, promoting products, and increasing brand awareness.
  • Loyalty programs and other ways of enhancing the user experience will also be essential for the promotion of gambling websites.
  • The development of partner relationship management software will be a major priority. It will help improve usability for affiliate partners and enable better communication between companies and affiliates. For instance, Partnergrator from Slotegrator offers a solution for online gambling platform operators who face difficulties in tracking their affiliate program data. This innovative solution provides the ability to manage and analyze affiliate programs in real-time, using analytics to simplify the decision-making process.”

The post How to avoid failing at affiliate marketing in 2024? appeared first on European Gaming Industry News.

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