Global sports data and technology company Sportradar Group AG announced its fourth-quarter and full-year 2022 financial results, posting revenue growth and a full-year profit decrease.
Fourth-Quarter Results
For the three months ended December 31, 2022, Sportradar reported revenue of €206.3 million ($220.7 million), up 35% year-over-year, of which 51% came from the Rest of the World (RoW) Betting segment. RoW Betting grew by 29% to €105.9 million ($113.3 million), and operations in the US accounted for €41.2 million ($44 million) in revenue, an increase of 77%.
Commenting on the quarterly results, Sportradar’s Interim chief financial officer, Ulrich Harmuth outlined the financial results as an illustration of the momentum the business had been building over the course of the year.
We demonstrated operational leverage in our business model, despite making significant investments in our products and technology, streamlined our organization to be more customer-centric, and strengthened our balance sheet by repaying our debt.
Ulrich Harmuth, CFO, Sportradar
Quarterly adjusted EBITDA was €35.1 million ($37.6 million), posting an increase of 64% compared to the last three months of 2021. Adjusted EBITDA margin was 17%, posting an increase of 300 bps from Q4 2021.
Unfavorable foreign currency exchange rates, planned pre-payments of sports league rights, taxes and restructuring costs impacted the quarterly adjusted EBITDA cash flow to minus €43.6 million ($46.6 million), almost doubling the Q4 2021 reading of €22.5 million ($24.1 million). The company prepaid its outstanding debt of €220 million ($235.4 million) and is going forward debt-free.
Full-Year Performance
Full-year revenue was €730.2 million ($781.3 million), an increase of 30% year-over-year, driven by RoW Betting which grew by 26%, and the US segment which was up 78% year-over-year. Adjusted EBITDA was €125.8 million ($134.6 million), up 23%.
We saw excellent performance across all of our key performance metrics despite challenging macroeconomic conditions including a second consecutive quarter of positive Adjusted EBITDA in the US.
Carsten Koerl, chief executive officer, Sportradar
Sportradar accounted for €10.5 million ($11.2 million) in full-year profit, down 18% from €12.8 million ($13.7 million) reported in 2021.
Sportradar ended the year with cash and cash equivalents of €243.8 million ($260.8 million) and undrawn credit facilities of €463.8 million ($496.3 million). The company also repaid €420 million ($449.4 million) of its outstanding debt.
2023 Financial Outlook
Looking forward, Sportradar is issuing a 2023 revenue outlook of between €902 million ($965.1 million) and €920 million ($984.4 million), representing growth of between 24% and 26% year-over-year, and adjusted EBITDA in the range of €157 million ($168 million) to €167 million ($178.7 million), representing growth of 25% to 33% compared to 2022.
“Our continued long-term partnerships with leading global sports bodies, and innovation across new technologies such as artificial intelligence and computer vision and as important, a team passionate about delivering solutions to our clients, make us very excited about our growth in 2023 and beyond,” concluded Koerl.