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Sportradar Reports Strong Growth and Increased Profitability and Cash Flow

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

Third Quarter 2022 Highlights

  • Revenue in the third quarter of 2022 increased 31% to €178.8 million ($175.2 million)1 compared with the third quarter of 2021. 2022 year-to-date revenue grew 28% compared to the same nine months in 2021.
  • The RoW Betting segment, accounting for 56% of total revenue, grew 28% to €100.9 million ($98.9 million)1, driven by strong performance from our Managed Betting Services (MBS).
  • U.S. segment revenue grew 61% to €31.6 million ($31.0 million)1 compared to the third quarter of 2021, driven by strong market growth and positive adoption of in-play betting. The U.S. segment turned profitable for the first time since the Company’s initial public offering and generated a positive Adjusted EBITDA margin of 11%.
  • The Company’s Adjusted EBITDA2 in the third quarter of 2022 increased 75% to €36.5 million ($35.8 million)1 compared with the third quarter of 2021 as a result of strong revenue growth even with continuous investments in the Company’s growing business.
  • Adjusted EBITDA margin2 was 20% in the third quarter of 2022, an increase of 500 bps compared to the quarter for the prior year period and 400 bps higher compared to the second quarter of 2022.
  • Adjusted Free Cash Flow2 in the third quarter of 2022 increased to €33.9 million, compared to €32.9 million for the prior year period. The resulting Cash Flow Conversion2 was 93% in the quarter.
  • During the quarter, the Company prepaid €200.0 million of its outstanding debt. As of September 30, 2022, total debt was €236.9 million, and cash and cash equivalents totaled €512.5 million.
  • The Company has raised its guidance for revenue and the lower end of its Adjusted EBITDA2 range for the full year 2022.
Key Financial Measures Q3 Q3 Change
In millions, in Euros 2022 2021 %
Revenue 178.8 136.8 31%
Adjusted EBITDA2 36.5 20.9 75%
Adjusted EBITDA margin2 20% 15%
Adjusted Free Cash Flow2 33.9 32.9 3%
Cash Flow Conversion2 93% 158%

1 For the convenience of the reader, we have translated Euros amounts at the noon buying rate of the Federal Reserve Bank on September 30, 2022, which was €1.00 to $0.98.
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.

Carsten Koerl, Chief Executive Officer of Sportradar said: “Our strong performance in the third quarter exceeded our expectations across all key financial metrics. We consistently managed to grow revenue, profitability and cash flows despite adverse market conditions during the first three quarters of 2022. The Company exceeds expectations quarter-in and quarter-out, and as a result of our operational performance – in particular the U.S. and the betting rest-of-world business – as well as our organizational streamlining, we are able to raise our full year guidance for revenue and increase the lower end of our Adjusted EBITDA range.”

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“We are proud of the continuous success of our U.S. operations. We managed to generate a U.S. profit for the first time in the third quarter, displaying solid operational leverage in the business model. Underpinning this success is the extension of our long-term partnership with FanDuel. This partnership is a testimony for our strategy, to expand our relationships and become an embedded technology provider for our customers, based on strategic long-term deals with our league partners.”

Ulrich Harmuth, Interim Chief Financial Officer added: “The financial results in the third quarter demonstrated that Sportradar consistently has managed to grow almost three times faster than the underlying betting market and our growing scale has led to margin expansion – as indicated by the U.S. segment turning profitable in the third quarter. As a result of this strong momentum and based on what we can see today, our 2023 preliminary expectations are for revenue to grow in the mid-20’s percent while expanding Adjusted EBITDA margin above 2022 levels.

Segment Information

RoW Betting

  • Segment revenue in the third quarter of 2022 increased by 28% to €100.9 million compared with the third quarter of 2021. This growth was driven primarily by increased sales of our higher value-add offerings including Managed Betting Services (MBS), which increased 84% to €38.2 million, and Live Odds Services, which increased 12% to €27.1 million. MBS growth was attributable to a record annualized turnover3 of €19.0 billion and the success of our strategy to move existing customers to higher value add products.
  • Segment Adjusted EBITDA2 in the third quarter of 2022 increased 8% to €48.2 million compared with the third quarter of 2021. Segment Adjusted EBITDA margin2 decreased to 48% from 57% in the third quarter of 2021 driven by inorganic investments into AI capabilities for our MBS business, expanding our sport rights portfolio, as well as temporary cost savings in sport rights and scouting from the prior year due to the COVID-19 pandemic.

RoW Audiovisual (AV)

  • Segment revenue in the third quarter of 2022 increased by 14% to €33.1 million compared with the third quarter of 2021. Growth was driven by cross-selling audiovisual content to existing data customers and expanding AV portfolio sales with existing AV customers.
  • Segment Adjusted EBITDA2 in the third quarter of 2022 increased 32% to €12.6 million compared with the third quarter of 2021. Segment Adjusted EBITDA margin2 increased to 38% from 33% compared with the third quarter of 2021 as a result of AV revenue growth.

United States

  • Segment revenue in the third quarter of 2022 increased by 61% to €31.6 million compared with the third quarter of 2021. This growth was driven by a strong increase of U.S. betting services, driven by cross-selling non-data products to betting operators as well as benefiting from our customers’ growth as a result of a development in the underlying market and new states legalizing betting.
  • Segment Adjusted EBITDA2 in the third quarter of 2022 was €3.4 million compared with a loss of (€6.6) million in the third quarter of 2021, primarily driven by enhanced operating leverage as a result of the growing scale of our business despite continuous investments in the U.S. segment’s products and content portfolio. Segment Adjusted EBITDA margin2 improved to 11% from (34%) compared with the third quarter of 2021.

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.

Costs and Expenses

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  • Purchased services and licenses in the third quarter of 2022 increased by €18.1 million to €47.5 million compared with the third quarter of 2021, reflecting continuous investments in content creation and processing, higher event coverage and higher scouting costs. Of the total, approximately €13.7 million was expensed sports rights.
  • Personnel expenses in the third quarter of 2022 increased by €16.9 million to €68.3 million, an increase of 33% compared with the third quarter of 2021. Adjusted for inorganic hires, personnel cost grew 27% compared to the third quarter in 2021.
  • Other Operating expenses in the third quarter of 2022 decreased by €4.9 million to €20.3 million, as a result of our efforts to increase the effectiveness of our central services and due to one-time costs resulting from our initial public offering in September 2021.
  • Total sport rights costs in the third quarter of 2022 increased by €5.9 million to €34.6 million compared with the third quarter of 2021, primarily a result of costs associated with new acquired rights in 2022 for the ITF, UEFA and ATP.

Recent Business/Company Highlights

  • Sportradar and FanDuel sign long-term agreement for Official NBA data through the 2030-31 season. Providing FanDuel with a comprehensive portfolio of betting products and entertainment tools, Sportradar remains the preferred data and odds supplier to FanDuel through 2031. Using official NBA data, Sportradar and FanDuel will collaborate to enhance the sports betting experience with new offerings such as certain player tracking data to create props and same game parlays. Additionally, FanDuel will use Sportradar’s proprietary Live Channel Trading (LCT) product.
  • Sportradar reaffirms leadership position in cricket market with partnerships with Australian Premier Cricket competitions. Sportradar announced the renewal of partnership agreements with the top tier club cricket competitions in Tasmania, Queensland, and Western Australia. Currently, Sportradar is partners with every single state and territory cricket governing body in Australia. Extensions with these clubs enable Sportradar to remain the official streaming partner until mid-2025
  • Sportradar and International Golf Federation enter integrity partnership. Sportradar’s Integrity Services (SIS) unit signed a multi-year integrity partnership with the International Golf Federation (IGF). Under the terms of the initial two-year agreement, SIS will provide bet monitoring through its Universal Fraud Detection System (UFDS) for several IGF competitions. Sportradar Integrity Services have detected more than 7,300 suspicious matches during the past 17 years, with over 600 taking place in 2022 alone.
  • Tennis Data Innovations and Sportradar team up to expand official tennis data distribution. The partnership sees the launch of a “new secondary feed,” to enable the provision of betting-related services based on official ATP Tour and ATP Challenger Tour scores to a suite of global bookmakers. Of significance, the partnership sees the ATP change its data framework, allowing bookmakers to have uninterrupted access to official data, as scores to date have been delivered directly from the umpire’s chair.
  • Sportradar continues to evolve its organizational structure to set it up for continued success in achieving its strategic goals around growth, organizational effectiveness and efficiency. The Company is optimizing its organization by appointing global leaders for content creation, product development and commercial excellence – with the U.S. retaining a dedicated go-to-market approach. With this new structure, the Company will become faster in decision-making and execution, and will be more effective and efficient in serving global customers with a growing global product portfolio. The net effect will also be to significantly reduce the number of direct reports to the CEO.

Annual Financial Outlook 
Sportradar has updated its outlook for revenue and Adjusted EBITDA for fiscal 2022 as follows:

  • Sportradar has raised its revenue outlook for fiscal 2022 to a range of €718.0 million to €723.0 million ($703.6 million to $708.5 million)1, from its previous range of €695.0 million to €715.0 million representing prospective growth of 28% to 29% over fiscal 2021.
  • Outlook for Adjusted EBITDA2 is narrowed to a range of €124.0 million to €127.0 million ($121.5 million to $124.5 million)1 from the previous range of €123.0 million to €133.0 million, representing 22% to 24% growth versus last year.
  • Adjusted EBITDA margin2 is expected to be in the range of 17% to 18%.4

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The largest exhibition of the gaming industry in Bulgaria marks its 15 year

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The largest trade exhibition of the gaming industry for Central and Eastern Europe – BEGE, which takes place in Sofia, marks its 15th anniversary this year. The event will be held on November 27th and 28th at the Inter Expo Center, Sofia, and dozens of companies from Europe, the USA, and Asia have already announced their participation.

The day before the start of the exhibition, the traditional BEGE Awards will be handed out. The glamorous ceremony will take place on 26 November 2024 in a sophisticated setting with the participation of representatives from across the sector. The awards are presented to individuals and companies with significant contributions to the gaming and entertainment industry.

During the exhibition, the Eastern European conference of the gaming industry – EEGS will be held, again at the Inter Expo Center. It is a preferred platform for experts who have the opportunity to learn about regulatory changes, technological developments and the latest trends in the sector.

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In 2023, dozens of exhibitors from three continents presented their latest products. “We are glad that hundreds of professionals and experts visited BEGE and our expectations for this year are to welcome even more people. For 15 years, the event has become one of the most influential exhibitions in Europe for the sector, gathering experts, professionals and companies from all over the world, covering all verticals of the online and offline segments of the industry,” explained Natalia Baevska, Project Manager of the exhibition.

BEGE provides an opportunity to make business contacts, present the latest products from the industry, which successfully applies the latest technological innovations, including artificial intelligence.

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eSports

Esports to Beat Football? SOFTSWISS Shares Sports Betting Trends for 2024

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Esports is raising its position among top sports by bets in 2023. The product team of the SOFTSWISS Sportsbook, a top sports betting software provider, reflects on the past year.

 

Esports Unstoppable Rise

Over the past three years, the top three sports by bets remain unchanged, with football, tennis and basketball maintaining their leadership. In contrast, esports has demonstrated a consistent upward trend, progressing from the seventh position in 2021 to the fourth in 2023. Notably, Counter-Strike stands out, claiming the sixth position among the top ten disciplines by the number of bets.

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Alexander Kamenetskyi, Head of SOFTSWISS Sportsbook, comments: “Considering the rise of esports, we guide our partners to focus on cyber disciplines, engaging audiences beyond traditional betting demographics. Highlighting the cybersports potential for operators, Newzoo’s report projects 640 million viewers by 2025.”

 

Mobiles Drive 92% of Operator GGR

Another notable trend in sports betting, which has remained unchanged for several years, is the consistent growth in bets made from mobile devices. According to the SOFTSWISS Sportsbook, 80% of bets in 2023 were placed via mobile versus 70% in 2022 and 68% in 2021. This trend solidifies as players increasingly opt for mobile convenience, especially in live betting scenarios. More importantly, it was mobile devices that contributed 92% to the operators’ GGR.

Kamenetskyi adds: “Mobile betting is one of our main focuses in product development. We put much effort into improving our mobile application and mobile website. It is specifically important for locations facing challenges with internet connectivity and regions like LatAm and Africa where internet coverage is still growing.”

 

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Casino Turnover Drops During Major Sports Events

The SOFTSWISS Sportsbook team has repeatedly emphasised shifts in player behaviour around major sports events. Specifically, there was a 10–20% drop in online casino turnover, coinciding with the World Cup 2022. This highlights a dynamic wherein a significant portion of casino players redirect their focus towards sports betting based on seasonal patterns. Considering audience preferences, reinforcing casinos with sportsbooks is a logical step.

Kamenetskyi adds: “This pattern underscores the strategic imperative for iGaming stakeholders to recognise the synergistic relationship between casino ventures and sportsbooks. Combining these options not only enhances casino appeal but also maintains player engagement, especially during sports events. In this context, it is worth mentioning that the SOFTSWISS Sportsbook is compatible with any casino platform on the market.”

Additionally, the SOFTSWISS Sportsbook team notes the strengthening of other trends like regulation and responsible gambling that have recently been highlighted in the iGaming Trends 2024 report by SOFTSWISS. The SOFTSWISS Sportsbook team will be glad to discuss all learnings during the first SBC Summit Rio at the stand D360.

 

About SOFTSWISS 

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SOFTSWISS is an international tech company supplying software solutions for managing iGaming projects. The expert team, which counts over 2,000 employees, is based in Malta, Poland and Georgia. SOFTSWISS holds a number of gaming licences and provides one-stop-shop iGaming software solutions. The company has a vast product portfolio, including the Online Casino Platform, the Game Aggregator with thousands of casino games, the Affilka affiliate platform, the Sportsbook Platform and the Jackpot Aggregator. In 2013, SOFTSWISS was the first in the world to introduce a Bitcoin-optimised online casino solution.

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Latest News

Week 8/2024 slot games releases

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Here are this weeks latest slots releases compiled by European Gaming

Yggdrasil, a leading iGaming publisher, is taking to the skies in an ethereal adventure alongside Boomerang Games in their latest release, Skylantis 2 WildFight™. The 5×4 title sees a plethora of heroes fill the reels located high up in the clouds, as players look to gain wins across 178 Connecta Ways, where any connected symbol makes a winning line.

Yggdrasil heads to the skies in Boomerang Games’ feature-filled Skylantis 2 WildFight™

 

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Greentube,  is braving the depths of the ocean in its latest feature-rich release Diamond Link™ Almighty Kraken™. This 5-reel, 25-win line slot offers players the chance to win great treasures by way of the Diamond Link™ feature and three lucrative Wild, Sticky and Colossal spins. Whenever players collect six diamond symbols, Diamond Link™ begins. Players receive three free spins in which they must collect diamond symbols boasting a cash value or a jackpot values.

Uncover pirate treasure in Greentube release Diamond Link™ Almighty Kraken™

 

Independent slots studio Thunderkick is bolstering the popularity of its player-favourite franchise with the release of Beat the Beast: Dragon’s Wrath, the sixth entry in its Beat the Beast series. Set upon a lake in the middle of mountains and towering castles, players are presented with symbols such as swords, rings and dragons upon the game’s 5×3 grid. Winning combinations must land across the slot’s nine paylines to award a win.

Thunderkick unveils latest entry in popular franchise with Beat the Beast: Dragon’s Wrath

 

Nailed It! Games, an independent Krakow-based games studio, is embarking on another intergalactic adventure as it launches a sequel to one of last year’s hits with Cosmic Moon. Returning to the cosmos, the title blends a futuristic space theme with retro iconography via its classic symbol design. These must form a matched combination across the slot’s 25 paylines to award a win, with diamond wild symbols aiding in creating these wins.

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Wazdan, has given the Extremely Light makeover to its popular retro title by introducing Hot Slot: 777 Rubies Extremely Light. An eco-friendly version of the original title, the revamped version offers smoother gameplay, faster loading times and less drain on the battery life of devices.

 

Supremeland Gaming’s Powderkeg Studios has announced the highly-anticipated global launch of its enchanting new slot game Red Panda Rising. Available to players globally, Red Panda Rising promises to captivate players with its unique theme, stunning graphics and engaging gameplay.

 

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In the latest release from Play’n GO, players shall join the ranks of the Spartans and stand alongside King Leonidas against Xerxes and his vast Persian army. Bringing players to the front lines of one of history’s most iconic tales of heroism, Undefeated Xerxes stands strong beside other Greek Mythology-themed slots, including Gates of Troy, Rise of Olympus, and Rich Wilde and the Shield of Athena.

Play’n GO joins the Spartan ranks in Undefeated Xerxes

 

Light & Wonder, Inc. announced the release of its inaugural Progressive Product games, Thundering Shenlong and Thundering Gorilla, from specialist slot provider Lightning Box, one of Light & Wonder’s in-house studios. The latest hits in Lightning Box’s portfolio have evolved from Lightning Shenlong and Lightning Gorilla to become the studio’s first ever Progressive Product titles. Thundering Shenlong and Thundering Gorilla showcase the Progressive Jackpot, including the Grand and Major Jackpot prizes.

LIGHTNING BOX™ UNVEILS LANDMARK DUAL LAUNCH WITH THUNDERING SHENLONG™ AND THUNDERING GORILLA™

 

Gaming Realms, a leading provider of mobile-focused gaming content, travels to the bamboo forests of Asia and aligns with Lunar New Year celebrations in its latest release, China Shores Slingo, a reimagining of a Konami classic. Having launched exclusively in the United States to positive results, the slot now makes its full worldwide debut.

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Having already put together a portfolio of SwinttSelect slots that’s visited all four corners of the globe, this month hot-shot software provider, Swintt, is mining deep beneath the earth’s surface in Dynamite Boost – an exciting, gold mine-themed game that’s packed with explosive features. Played out in front of a backdrop of glittering caves and gold-laden carts, the new subterranean slot features all manner of mining-themed paraphernalia across its five reels.

Swintt strikes gold in Dynamite Boost

 

Yggdrasil is bringing back a player hit with Rainbow Ryan 2, starring the high-performing synced reels from the original title but with unique features such as Louder Multipliers, Encore Respins and a lucrative Jackpot Wheel. The guitar playing leprechaun Rainbow Ryan makes a return in this sequel to Yggdrasil’s 2017 release, with the new iteration offering the possibility to sync between two and six reels, seeing them land with the exact same symbols, increasing the chance of a winning combination.

 

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Push Gaming heads to the Arctic in a title focused on instant win prizes, with its latest release Big Bite. Played across 5×3 reels, the wintery water adventure depicts polar bears, seals, penguins and more frozen-themed icons. These are joined by a wild, which substitutes for all base game symbols, making wins across 10 paylines easier to achieve.

 

Expanse Studios has just announced the launch of their latest creation, 100 Super Icy, a classic fruit slot with a refreshing twist! Boasting a generous RTP of 97.10% and medium volatility, this 4×5 slot promises players an exhilarating gaming experience filled with excitement and frequent wins.

 

 

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Stakelogic invites players to take a trip to a hidden paradise deep in the heart of the South Pacific Sea. Upon arrival, players will be greeted by some whacky, angry-looking birds, but fear not, these hold the key to all of the riches and secrets this island has to offer. Players can uncover lost treasures in Tiki Tiki Hold ‘N’ Win by landing Bonus Symbols. Landing three triggers the Fortune Wheel, while four and five trigger the Mega and Epic Fortune Wheels.

 

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