Sportradar doubles full-year US revenue as stock climbs on 2022 financial forecast

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Sportradar’s share price has risen by more than 12% after the provider witnessed significant growth across all business areas in both Q4 and full-year 2021.

The business saw Q4 2021 revenue grow by 41.1% year-on-year, generating €152.4m during the period. This left adjusted EBITDA of €21.4m, up 13.8% from €18.8m in Q4 2020, though at a lower margin of 14.0%, compared to 17.4% in the prior year period.

Sportradar said the reduced EBITDA margin was a result of increased investment in content and technology, increased M&A costs and the costs associated with listing as a public company on the Nasdaq in September of last year.

The US was a standout performer for the business in Q4, with revenue from that segment increasing by 91.5% to €23.2m.

Betting revenue from the Rest of the World segment was the firm’s largest business area by revenue, however, climbing 29.7% to €82.2m.

Audiovisual revenue from Rest of the World also grew year-on-year, coming in at €35.6m, 51.5% ahead of Q4 2020. Other segments brought in the remaining €11.3m, up 25.6%.

After accounting for business costs, depreciation, amortisation and impairments, Sportradar declared net income before tax of €4.5m, down 66.9% on Q4 2020. After paying €313,000 in income tax expenses, the firm was left with profit for the period of €4.2m, down 56.3%.

Other income for the period, however, including €1.2m in deferred tax income, and other comprehensive income of €15.4m, left the business with total comprehensive income for Q4 of €19.6m, up from €10.7m in Q4 2020.

Looking at full-year 2021, Sportradar generated total revenue of €561.2m, up 38.6%, with adjusted EBITDA of €102.0m, up 32.6%.

Breaking down the revenue by business area, €309.4m came from the Rest of World betting segment, up 31.6%, while Rest of World audiovisual revenue grew by 32.4%.

US revenue in 2021, meanwhile, more than doubled to €71.7m, from €34.4m in 2020. Other segments generated the remaining €40.0m.

Net income before tax for the full year was up 7.7% to €23.8m, however after an increased tax burden of €11.0m the business declared profit for the year of €12.8m, down 13.6%.

The company ended the year with €742.8m in cash and cash equivalents, almost double the €385.6m on file at the end of 2020.

“I am very pleased with our strong results, which illustrate how well we are delivering on our operational and growth plans,” said Sportradar CEO, Carsten Koerl.

“Importantly, we have good momentum going into our next fiscal year. We are continuing to invest in content, technology and people that will allow us to deliver profitable growth in line with our goals.

“We are particularly pleased about more than doubling our year-over-year revenues in the US, which continues its explosive sports betting growth story. Sportradar has been a leader in this market since 2014, and we’re now seeing the results of our early investment.”

Outlook appears positive for 2022, with projected revenue of between €665m and €700m for the year, representing growth between 18% and 25% over 2021.

Adjusted EBITDA for 2022 is expected to fall between €123m and €133m, suggesting growth between 21% and 30%, while the firm’s EBITDA margin is also expected to improve to between 18.5% and 19.0%.

If the business is forced to withdraw from Russia due to its war with Ukraine, forecast EBITDA for 2022 would fall to “no less than” €110m, according to Koerl, who is reportedly a large shareholder in a prominent Russian sportsbook.

Featured image courtesy of Sportradar.

About the author

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Conor Mulheir

Conor entered the gaming industry in 2018 producing high-level live event content for audiences in London, Amsterdam and São Paulo. From 2020, he went on to report news and commission exclusive content for various gaming media brands before joining iGaming NEXT as editor in January 2022.

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