Press Releases

Sportradar Reports Fourth Quarter and Full Year 2023 Results

Published

2 months ago

March 20, 2024

sportradar-reports-fourth-quarter-and-full-year-2023-results

Reading Time: 7 minutes

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.

^{_________________________________

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.

bet365

IBIA and PFA Canada join forces to provide sports integrity education to the Canadian Premier League

Published

1 hour ago

May 9, 2024

GamingAmericas.com

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CPL first to benefit from CA$300,000 education fund commitment by regulated sports betting operators.

The International Betting Integrity Association (IBIA) and its members bet365, Betway and FanDuel have partnered with the Professional Footballers’ Association Canada (PFA Canada) to design a bespoke two-year sports-integrity education program for players and staff in the Canadian Premier League (CPL).

In 2024, the program – which will start in May – will educate approximately 300 players and staff about the potential threat of sports-betting related match-fixing to the integrity of the Canadian Premier League, their careers, as well as its potential to defraud sports betting operators and customers. The agreement also stipulates a repeat training in 2025 to ensure new players joining the league are also able to protect themselves from criminals and corrupters and report any suspicious activity.

Khalid Ali, CEO of IBIA, said: “IBIA’s members take their role – as responsible regulated betting operators – in protecting the integrity of sporting competition and of betting markets seriously. Alongside balanced, efficient and evidenced-based regulation, protecting soccer players, staff and officials from being targeted by criminals is an essential first step to stamping-out sports-betting related match-fixing and fraud.”

The program will include a combination of dedicated in-person trainings and online resources for players and staff in the CPL’s eight league teams. The in-person sessions will educate players on the environment in which they are operating, including rules and sanctions, as well as highlighting the scale and accuracy of technology enabled sports integrity monitoring.

Dan Kruk, Executive Director of PFA Canada, said: “IBIA has delivered sports-integrity education to over thirty-five thousand athletes in Europe since 2010, and we’re grateful that they can leverage that know-how to design a bespoke training for CPL players. At PFA Canada we understand that, despite being more resource-intensive, in-person sports integrity education is essential to gain the trust and understanding of busy athletes, and to enable full, frank and open conversations.”

The CPL’s sports-integrity education program has been enabled by a CA$300,000 commitment over three years by IBIA and its member operators bet365, Betway and FanDuel for the Canadian market, from which other sports are also expected to benefit.

“At FanDuel Canada, we recognize the critical role athlete education plays in maintaining sports integrity,” said Dale Hooper, General Manager of FanDuel Canada. “We are thrilled to expand our engagement with IBIA through this new partnership helping to build a curriculum that will help athletes understand their role in protecting sport.”

Joachim Bjerg of Betway stated: “We’re very proud to partner and support IBIA and the Professional Footballers’ Association Canada that will design, create and implement a bespoke course that will further enhance Betway’s global commitment to educating players and staff involved in sport.

“As a responsible regulated betting operator, we see our role in this sector imperative to safeguarding the integrity of sports and we very much look forward to working with IBIA on this exciting and important initiative.”

Jean-Francois Reymond, IBIA’s Education Ambassador, who will work with the PFA Canada trainers on the May launch, said: “We look forward to working with PFA Canada to further protect the Canadian Premier League from the threat of sports-betting related match-fixing. Protecting the integrity of sport means protecting the integrity of athletes. Most often through a lack of awareness, it is the athletes who are risking their careers and livelihoods. IBIA’s objective is to help build a best-in-class program for all athletes that serves to protect the integrity of Canadian sport and the careers of Canada’s athletes.”

IBIA’s sports-integrity education program is a global offering, alongside IBIA’s not-for-profit model for sharing data on suspicious sporting events with sports regulators and law enforcement, player education can significantly reduce the threat of sports betting related match-fixing. In 2024, IBIA has already trained athletes at the EUBC’s European Boxing Championships in Serbia and is in active discussion with sports governing bodies in Canada and several other jurisdictions to ensure that as many athletes as possible can benefit from sports integrity education. Please contact us if you are interested in learning more.

Press Releases

ZITRO MAKES HISTORY AT THE MADRID SHOW

Published

1 hour ago

May 9, 2024

Adrienn Sarkany

Reading Time: 2 minutes

Zitro has made its mark at the Feria Internacional del Juego de Madrid (FIJMA 24), presenting an exciting range of products designed to captivate Spanish players. Under the slogan “Each Game, A Story”, Zitro has once again demonstrated its commitment to excellence in the gaming industry in Spain.

At the recent edition of the Madrid show, Zitro once again surprised attendees with a large display of games. Up to 13 new slot titles were presented, with mechanics never seen before by players in Spanish gaming halls, all compatible with the Mega y Más system.

Among the most outstanding products presented by Zitro at the Madrid Show was Fu Frog, a captivating title for the Allure Glare cabinet, which leaps onto the scene with up to 7 bonus links. These are powered by a trio of exclusive features, each represented by three colored frogs: the green frog multiplies prizes, the orange one doubles the bonus, and the yellow one grants extra lives.

Epic Kingdom, showcased brightly on the Altius Glare cabinet, features an innovative “3-level Link” bonus. As link symbols appear, players will unlock three extra levels of thrilling gameplay on the bonus screen, until reaching the Mega Zone, where they can win the MEGA jackpot with just one symbol.

Another of Zitro’s stars at the show was Energy Link, presented on the Fusion Glare cabinet, and featuring up to 4 different bonus links, Energy Link is the perfect evolution of Zitro’s popular games, Link King and Link Me, which are well-known to Spanish players and operators, including the player favorite, Link Up feature, allowing them to enhance each of the bonus links by raising their bet.

Games such as Billy the Pig, which features a super dynamic bonus never seen before in Spanish gaming halls, and many other games such as Drum Dynasty, Epic Empires, Boost Link King, or Boost Link Me also stood out at the show.

As for video bingo, a market segment in which the company is the leader, Zitro has showcased a variety of new and captivating titles, such as The Great Wealth or Fratelli Pizza, which feature free games, as well as Stravaganzza Da Vinci and Stravaganzza Double Bonus, which significantly enhance access to the bonus rounds in these popular games.

In addition, Zitro is taking a step forward in its online gaming universe with a diverse range of Zitro Digital games, adapting the company’s most successful games to the Digital market and including new and improved tools and features that will captivate players.

Zitro’s founder, Johnny Ortiz, stated: “We are thrilled to share our latest gaming products for the Spanish market. Fu Frog has undeniably stolen the spotlight at the show and is already a sure bet. Our award-winning portfolio boasts innovative game mechanics, recognized, across the globe, from America to Europe, and delivers fantastic results in Spanish gaming halls where they’ve already been installed. We do not doubt that these new additions, alongside upcoming releases this year, will redefine the entertainment landscape in Spain and set the bar for future trends.”

Manuela Jiménez, Zitro’s vice president, also stated: “We would like to thank everyone who visited our booth at the Madrid show. The support from customers, authorities, and visitors alike is fundamental for us, and it drives us to continue innovating and offering high-quality gaming experiences”.

Mirroring the excitement, Zitro’s Commercial Director, Vicente Fernández, expressed his satisfaction with the customer response. “The feedback we’ve received at the show has been exceptional,” he remarked. “The strong interest from operators and players highlights our games’ impact on the market”.

The post ZITRO MAKES HISTORY AT THE MADRID SHOW appeared first on European Gaming Industry News.

eSports

Students from three British universities will fight to become champions of UE Masters

Published

3 hours ago

May 9, 2024

Adrienn Sarkany

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Reading Time: 2 minutes

The United Kingdom is one of the countries represented in the largest video game competition between universities across Europe. Students from University of Roehampton, Nottingham Trent University, and Staffordshire University will fight to qualify for the Grand Final and become champions of UNIVERSITY Esports Masters (UE Masters).

After demonstrating a high level in the previous qualifiers, the British universities will have four teams participating in the UE Masters Playoffs, which will be played on the following dates: Rocket League (May 11 and 12) and VALORANT (May 25 and 26). In addition to the players from the UK, opponents representing Croatia, Belgium, France, Italy, Germany, Ukraine, Ireland, Spain, and the Netherlands will also take part. The matches can be followed on the competition’s official Twitch channel (twitch.tv/uemasters).

Two teams of University of Roehampton will seek victory in Rocket League Playoffs this weekend. On the other hand, students from Nottingham Trent University and Staffordshire University will try to be the winners in the VALORANT Playoffs in the coming weeks.

The 2023/24 edition of the UE Masters, which will distribute a total prize pool of 14,000 euros, has counted with the participation of university teams from 17 European countries and the support of Riot Games, one of the world’s leading video game developers (publishers).

Beyond of a video game competition

UNIVERSITY Esports Masters is a video game competition integrated within UNIVERSITY Esports, a global esports, gaming and technology project that is present in 26 countries on four continents and has the participation of more than 100,000 universities.

The main objectives of UNIVERSITY Esports Masters are to create a sense of community among players from all over Europe, to give them the opportunity to compete in high quality international tournaments and to provide avenues for young people to develop a career within the esports world, as well as to find a place to learn and enhance their skills.

The potential of esports and gaming in the UK

Gaming and video game competitions are positioned as one of the fastest growing sectors of the entertainment industry year on year globally. According to the statistics portal Statista, “the United Kingdom is experiencing a surge in Esports popularity, with a growing number of tournaments, teams, and dedicated arenas.”

The same source forecasts that the domestic esports market in the UK will reach revenues of £183.3 million in 2024, with a penetration rate of 27.9%. By 2028, it estimates revenues of £234 million and a market share of 33.1%.

The post Students from three British universities will fight to become champions of UE Masters appeared first on European Gaming Industry News.