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Sportradar Announces Strong Third Quarter 2021 Financial Results

Published

3 years ago

November 17, 2021

Reading Time: 6 minutes

Sportradar Group AG , a leading global technology platform 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 third quarter ended September 30, 2021.

Third Quarter 2021 Highlights

Revenue in the third quarter of 2021 increased 30% compared to the third quarter of 2020 to €136.8 million ($158.7 million)¹, driven by robust growth across all geographies and business segments
Continued strong performance in the U.S. market with U.S. revenue in the third quarter of 2021 increasing by 119% compared to the third quarter of 2020. For the nine months ended September 30, 2021 the U.S. revenue reached €48.5 million ($56.3 million)¹
Adjusted EBITDA* in the third quarter of 2021 was up 21% compared to the third quarter of 2020 to €20.9 million ($24.2 million)¹
Strong Dollar-Based Net Retention Rate* of 128% at the end of third quarter of 2021, underscoring the continued success of our cross-sell and upsell strategy
Successfully extended our partnership through 2028 with FanDuel Group, a leader in the U.S. sports betting market, covering pre-match betting services, live betting services, and betting entertainment tools
Completed successful listing on Nasdaq, raising €546 million of primary net proceeds to fund continued growth in the business, providing the Company with €878 million to continue to invest in global growth
For the full-year 2021, we expect revenue to be in the range of €553 to €555 ($641 to $644)¹ million and Adjusted EBITDA* in the range of €99.5 to 101.5 ($115.4 to $117.7)¹ million.

	Q3	Q3	Change
	2021	2020	%

Revenue	€136.8	€105.3	+30%

Adjusted EBITDA*	€20.9	€17.3	+21%

Adjusted EBITDA margin*	15%	16%	-7%

Dollar-Based Net Retention Rate*	128%	114%	+12%

Adjusted Free Cash Flow*	€32.9	€13.5	+144%

Cash Flow Conversion*	158%	78%	+102%

_____________________
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 of New York on September 30, 2021, which was €1.00 to $1.16.
^* 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.

Carsten Koerl, Chief Executive Officer of Sportradar said: “Our strong results demonstrate the value we provide to our partners and customers around the world. We are the largest provider of sports intelligence in the world and the only profitable global sports technology platform of scale. Critically, we believe we are also the most innovative in developing technology solutions that enable our league customers, media and betting partners to use our ever-increasing data to attract and engage sports fans.”

European Gaming Congress 2024 (Warsaw, Poland)

Koerl continued, “We plan to continue to make significant investments, particularly in the U.S. The U.S. represents the primary area of focus to execute on our strategic growth plans, as the U.S. region is currently only 7 percent of our group revenues, representing a significant potential business opportunity as more states legalize betting and the market expands from $1 billion in 2019 to an estimated $23 billion in the next 10 years. Our recent Nasdaq listing in the U.S. was a tremendous milestone for our team, and we look forward to building on our success in a multitude of areas in the years ahead.”

Financial Highlights for the Three Months Ended September 30, 2021

Revenue in the third quarter of 2021 increased by 30% compared to the third quarter of 2020 to €136.8 million
Adjusted EBITDA* in the third quarter of 2021 increased by 21% compared to the third quarter of 2020 to €20.9 million
Adjusted EBITDA margin* remains strong at 15% in the third quarter of 2021, a slight decrease compared to the third quarter 2020 due to additional IPO costs of approximately €5.7 million which were incurred in the third quarter of 2021. Eliminating the impact of IPO costs would result in an Adjusted EBITDA margin of 20%, illustrating our continuous ability to achieve operating leverage
Dollar-Based Net Retention Rate* increased from 114% to 128% for the comparable twelve month period ending at September 30, 2020 and 2021 demonstrating continued execution of our upsell and cross-sell strategy and underscoring the quality of the products and services we provide our customers
Adjusted Free Cash Flow* in the third quarter of 2021 increased by 144% to €32.9 million which resulted in a Group Cashflow conversion of 158%
Cash totaled €768.4 million as of September 30, 2021. Total liquidity available for use at September 30, 2021, including undrawn credit facilities was €878.4 million
Total Debt at September 30, 2021 was €436.7 million resulting in a net cash position of €331.7 million

Segment Information

RoW Betting

Segment revenue in the third quarter of 2021 increased by 24% compared to the third quarter of 2020 to €78.6 million. This growth was driven primarily by uptake in our higher value-add offerings including Managed Betting Services and Live Odds Services, which increased by 63% and 20% respectively, as a result of new customers wins as well as increased turnover² and volume.
Segment Adjusted EBITDA* in the third quarter of 2021 increased by 36% compared to the third quarter of 2020 to €44.7 million. The Segment Adjusted EBITDA margin* improved from 52% to 57% in the third quarter of 2021 driven by growth in higher margin products.

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

RoW AV

Segment revenue increased in the third quarter of 2021 by 13% compared to the third quarter of 2020 to €29.0 million. This growth was impacted by COVID related schedule changes in 2020, when more matches than usual were played in Q3 2020. Adjusting for schedule changes Q3 2021 growth was approximately 30%, driven by volume growth as we were able to sell more matches (such as Soccer and Baseball) as well as growth from additional, new content (such as Copa America, Horse Racing and eSports) being sold to existing and new customers.
Segment Adjusted EBITDA* in the third quarter of 2021 increased by 220% compared to the third quarter of 2020 to €9.6 million. The Segment Adjusted EBITDA margin* improved from 12% to 33% in the third quarter of 2021 driven by lower cost of some content.

United States

Segment revenue in the third quarter of 2021 increased by 119% compared to the third quarter of 2020 to €19.6 million. This result was driven by growth in our US Betting services and increased revenue from our customers as the underlying market and turnover grew. We also experienced strong adoption of our ad:s product, growth in US Media and a positive impact from the acquisition of Synergy Sports in the second quarter of 2021.
Segment Adjusted EBITDA* in the third quarter of 2021 increased by 24% compared to the third quarter of 2020 to -€(6.6) million. The Segment Adjusted EBITDA margin* improved from (-60%) to (-34%) in the third quarter of 2021 which reflects the scalability of this business and clear path to profitability while continuing to invest in the US market.

Costs and Expenses

Personnel expenses in the third quarter of 2021 increased by €20.0 million compared to the third quarter of 2020 to €51.3 million resulting from additional hires in new business lines (2.849 FTE in the third quarter of 2021 vs 2.235 FTE in the third quarter of 2020), stock-based compensation, and reversal of temporary COVID 19 cost savings in the third quarter of 2021 compared to the third quarter of 2020.
Other Operating expenses in the third quarter of 2021 increased by €15.7 million compared to the third quarter of 2020 to €25.2 million mainly driven by incurred costs for IPO, compliance costs relating to operating as a publicly listed company in the US and M&A costs.
Total Sport rights costs in the third quarter of 2021 decreased by €9.0 million compared to the third quarter of 2020 to €28.7 million resulting from fewer major sporting events in the third quarter of 2021 compared to the third quarter of 2020.
Adjusted EBITDA* in the third quarter of 2021 was negatively impacted by IPO costs of €5.7 million. Eliminating this impact would result in an Adjusted EBITDA* of €26.6 million.

Recent Business Highlights

Issued and sold 19 million shares in connection with the closing of our IPO on Nasdaq raising €546 million of primary net proceeds
Signed integrity partnerships with leading sports leagues and federations such as cricket’s Tamil Nadu Premier League (TNPL), Badminton Europe and the Austrian Tennis Association
Secured a multi-year exclusive official data and media rights deal with Ligue Nationale de Basket (LNB), France’s top basketball league
Implemented full Computer Vision models for Grand Slam tennis events including Wimbledon and US open
Combined newly developed AI tools with our Managed Trading Services, Sportradar’s holistic trading service for sportsbook operators, to more accurately detect potential betting related match-fixing
Announced partnership extension with US market leader FanDuel Group through 2028
Announced a five-year deal with US betting and iGaming operator, Bally’s Interactive, to help support and grow sportsbook operations in the US
Celebrated three wins at the EGR B2B Awards in the Best Customer Service and Live Streaming Supplier categories, as well as the recently acquired Fresh Eight being shortlisted for Best Marketing and PR Supplier

Financial Outlook

For the full-year 2021, the Company currently expects:

Revenue in the range of €553 million to €555 million, representing growth of 36.6% to 37.1% for fiscal 2021
Adjusted EBITDA* in the range of €99.5 million to €101.5 million, representing growth of 29.4% to 32.0% for fiscal 2021

Conference Call and Webcast Information

Sportradar will host a conference call to discuss the third quarter 2021 financial results on November 17, 2021 at 8:00 a.m. Eastern Time (“ET”). The conference call can be accessed live over the phone by dialing 1-877-423-9813, or for international callers 1-201-689-8573. A replay will be available from 11:00 a.m. ET on November 17, 2021 through November 24, 2021, by dialing 1-844-512-2921, or for international callers 1-412-317-6671. The replay passcode will be 13724560.

Latest News

Pre-Submission Check-Up: Is Your Project Ready for an Investment Fund?

Published

2 hours ago

March 10, 2025

George Miller

pre-submission-check-up:-is-your-project-ready-for-an-investment-fund?

Reading Time: 3 minutes

Securing investment is a crucial step in the growth of any business, but before submitting an application, it is essential to critically assess its readiness. Does the team have the necessary expertise? Is the product in demand in the market? Is there a well-thought-out development strategy and financial model?

Founders often become so engrossed in their ideas that they overlook critical aspects that are key for investors. Investors evaluate not just the concept but also the actual viability of the business—market demand, team professionalism, financial stability, and scalability potential.

One of the funds that support promising companies, teams, startups, and technologies and help them grow is PIN-UP.INVESTMENTS. The fund follows a meticulous selection process, investing in verified projects that are prepared for sustainable development. COO Ihor Denysov has outlined the key criteria that define an ideal candidate for investment, emphasizing strategic business development and scalability potential. These criteria serve as guiding principles rather than strict requirements, helping projects better align with the fund’s vision.

1. Strategic Investment Focus Areas

To attract investment, the product of potential investee must align with the verticals that match current investor focus areas. Essential alignment niches include:

MarTech Solutions — traffic solutions, advertising agencies, and marketing tools, including arbitrage teams, media platforms, telegram channels, advertising networks, influencer marketing, and AI-driven technologies. Tier 1 and Tier 2 are of interest.
iGaming Innovations — casino game studios and comprehensive iGaming solutions, particularly slots, instant games, and infrastructure solutions for online gaming operators.
Fintech Advancements — digital banking services, cryptocurrency projects, and innovative payment systems.
AI/ML Applications — advanced artificial intelligence technologies enhancing user engagement, retention, and innovative solutions across various domains.
Analytics Platforms — operational solutions optimising user acquisition, retention strategies, marketing performance, and overall business processes. Projects falling outside these strategic domains may not align with our current investment thesis regardless of their individual merit.

2. Product with Proven Market Demand

To secure investment, businesses, companies, technology projects, and teams must have more than just an idea; they need a real, market-validated product. Minimum requirements include:

MVP+ (Minimum Viable Product Plus) — a product with basic functionality and initial users.
Market demand validation — stable customer base growth, user behavior analytics, early sales, market research, alignment with the key market trends.
A clear business model — understanding how the initiative will generate revenue.

If the product has not yet demonstrated market demand, it is crucial to focus on testing hypotheses before seeking investment.

3. Innovative Features for Market Advantage

Product differentiation is a crucial element for market success. It is essential to have:

Unique solution to an existing problem that addresses the pain points in ways competitors don’t.
Clear superiority backed by data, user testing, experience.
Technologies that are hard to replicate—ideally patent-protected—can help maintain a competitive edge in the market. While not a strict requirement, having such innovations significantly strengthens a project’s investment appeal.

Products lacking distinctive features significantly reduce their chances of gaining market traction and investment.

4. A Strong Team with Industry Experience

The team is a critical factor in determining a project’s success. It is essential to have:

An experienced CEO and competent core team (devOps, marketers, technical specialists, financial experts) who understand their field.
Clearly defined roles and efficient internal processes.
Previous experience in launching or developing similar projects.

Teams lacking the necessary expertise significantly reduce their chances of securing investment.

5. Transparent Financial Model and Growth Forecast

It is essential that the potential investees have:

A well-structured financial model — revenue streams, cost structure, and expected profitability.
Key customer acquisition metrics (CAC, LTV, ROI) that demonstrate marketing strategy effectiveness would be considered as the plus.
A profitability forecast — outlining when and under what conditions the project will become self-sustaining.

Projects that cannot justify financial viability typically do not pass the selection process.

6. Readiness for Scaling

It is crucial to demonstrate:

Growth potential — the ability to expand into international markets or scale within the current niche.
Adaptable business model — ability to pivot or modify offerings based on changing market conditions and feedback.
A well-planned customer acquisition strategy — including performance marketing, SEO, and partnership programs.

Projects without a clear scaling strategy are not considered investment-attractive.

Conclusion

Meeting these criteria significantly increases the chances of securing investment. PIN-UP.INVESTMENTS considers only verified, promising projects that are ready for growth. When submitting an application, businesses must be prepared to demonstrate not just anticipated but also concrete results that confirm their sustainability and competitiveness.

The post Pre-Submission Check-Up: Is Your Project Ready for an Investment Fund? appeared first on European Gaming Industry News.

Latest News

Zimpler partners with Swish to unlock direct participation – transforming access to Swish payments for highly regulated industries

Published

2 hours ago

March 10, 2025

George Miller

zimpler-partners-with-swish-to-unlock-direct-participation-–-transforming-access-to-swish-payments-for-highly-regulated-industries

Reading Time: < 1 minute

Swish is opening up to PSPs for the first time – eliminating the need for businesses to partner with a bank to get access. Zimpler is breaking new ground as the first PSP to integrate directly with Getswish, the company behind Sweden’s most widely used instant payment method.

This change removes one of the biggest onboarding barriers for businesses in highly regulated industries. Until now, merchants needed direct banking relationships to access Swish – an often costly, time-consuming, and restrictive process. Through Zimpler’s direct participation, businesses can now integrate Swish faster, at a lower cost, and with greater stability.

“This is a game-changer for the Swedish payments landscape,” says Johan Strand, CEO of Zimpler. “Many businesses in regulated sectors have faced challenges accessing payment solutions due to complex banking requirements. By offering a direct route, we’re giving merchants a faster, more efficient way to access one of Sweden’s most trusted payment methods.”

Beyond direct merchant access, this could open up the possibility for Zimpler to act as a Swish provider for other PSPs, making the solution even more widely available.

Urban Höglund, CEO of Getswish, adds: “Swish has always been about speed, security, and ease of use. With this partnership we make it possible for more companies to accept Swish payments.”

With the rise of account-to-account (A2A) payments and increasing pressure for frictionless payment solutions, this collaboration signals a major shift in Sweden’s financial ecosystem.

The post Zimpler partners with Swish to unlock direct participation – transforming access to Swish payments for highly regulated industries appeared first on European Gaming Industry News.

BitLine

Bitline and Everi Announce Crypto Liquidity for Choctaw Casinos & Resorts in Industry First Development

Published

2 hours ago

March 10, 2025

GamingAmericas.com

bitline-and-everi-announce-crypto-liquidity-for-choctaw-casinos-&-resorts-in-industry-first-development

Bitline, the only provider for casino chip access directly from cryptocurrency, has announced its first major collaboration in the U.S. casino market, teaming up with Choctaw Casinos & Resorts through its collaboration with Everi, a premier provider of financial technology and gaming solutions. This collaboration introduces cryptocurrency and digital assets as a new source of liquidity for casino patrons and marks the first time that such a functionality has been enabled within the American gaming industry.

Leveraging Everi’s CashClub’s comprehensive payment infrastructure, Bitline’s solution is able to efficiently board, screen and verify patrons looking to leverage their digital assets whilst also allowing patrons to move screened assets into custody within minutes. Bitline’s integration with Everi Cash Club, the leading financial access services suite for casino payments, will enable the technology for the benefit of Choctaw Casinos & Resorts, and is the first time that such a functionality has been possible in the U.S. regulated casino market.

Catering to the growing demand for greater cryptocurrency and digital asset integration within the casino industry, the collaboration between Bitline and Everi’s forms a transferable blueprint that offers casino operators and their patrons an alternative way to manage funds, access liquidity, and leverage the benefits of cryptocurrency and other digital assets.

This milestone reflects a strategic shift in how casino operators view and manage financial interactions with their guests. The introduction of cryptocurrency as a liquidity solution provides additional options for guests and lays the foundation for Choctaw Casinos & Resorts as it looks to the future of gaming sector finance, setting a new standard in financial accessibility and convenience.

“Working with Choctaw Casinos & Resorts and Everi to make this a reality is a historical moment for both the casino and blockchain industries. Bitline was conceptualized to advance the gaming sector and offer a wider variety of financial options for the casino industry,” said Richard Jones, CEO at Bitline. “We’re entering an era where digital assets can fundamentally enhance the gaming experience, providing casino operators with a future-ready financial framework that can expand and evolve as the industry does. This collaboration is just the beginning of our vision to modernize casino payment capabilities on a global scale.”

Victor Newsom, SVP Product Management, Payments Solutions at Everi comments “This unique integration combines BitLine’s additional payment accessibility options with Everi’s ability to enable seamless, secure, and regulatory compliant financial transactions for casino patrons. Designed from the ground up to exceed the rigorous compliance demands of the industry as well as the discerning expectations of gaming VIPs around the world, Choctaw’s patrons are now no longer limited to the access, times, amount, and speed constraints of the legacy financial systems. This also significantly reduces risk for our casino customers, such as Choctaw.”

“We are excited to be the first casino in North America to offer our guests another way to play,” said Thomas McDonald, Senior Director of Cage and Credit at Choctaw Casinos & Resorts. “Through our long-term relationship with Everi, a leader in fintech solutions, we will continue to invest in innovative offerings that provide the discerning gaming VIP access to funds in a safe and secure manner.”

The Choctaw Casinos & Resorts integration represents only the first phase of Bitline’s broader mission to bring cryptocurrency solutions to casinos and casino patrons worldwide. As cryptocurrency and digital assets continue to gain traction in the gaming sector, Bitline’s easy to integrate and patented payment model stands poised to become a key player in transforming gaming finance. Future plans include expanding services across other major casinos and gaming markets, both domestically and internationally, establishing cryptocurrency as a new standard feature of the gaming experience.

The solution is to be formally rolled out on March 7, 2025, with the first transaction taking place at Choctaw’s Durant, Oklahoma, location.

The post Bitline and Everi Announce Crypto Liquidity for Choctaw Casinos & Resorts in Industry First Development appeared first on Gaming and Gambling Industry in the Americas.