Unleashing the Sportradar Behemoth: Q4 2022 and Full-Year Financial Results
Strong Growth in 2022 for Sportradar Built on Q4 Success
Here's the skinny on the latest financials from global sports data and tech powerhouse Sportradar Group AG. They've spilled the beans on their Q4 2022 and full-year 2022 performance, revealing revenue growth and a slight dent in annual profit.
Q4 2022: A Bang-Up Quarter
In the final stretch of 2022, Sportradar raked in a cool €206.3 million ($220.7 million) in revenue, marking an impressive 35% hike compared to the same period in 2021. The icing on the cake? 51% of that haul came from the Rest of the World (RoW) Betting segment, with a whopping 29% growth to €105.9 million ($113.3 million). US operations contributed another €41.2 million ($44 million) to the coffers, a stellar 77% increase.
Running the numbers, Interim CFO, Ulrich Harmuth, claimed that the results depicted the business momentum built throughout the year. Sportradar managed to squeeze operational leverage out of its business model, despite investing heftily in products and technology. The organization streamlined its operations to cater better to customers and improved its financial fortress by settling its debt.
Quarterly adjusted EBITDA reached €35.1 million ($37.6 million), a significant 64% boost compared to Q4 2021. The adjusted EBITDA margin rose to 17%, an increase of 300 bps from the last quarter of 2021. However, foreign currency exchange rates, planned pre-payments, taxes, and restructuring costs took a toll on the quarterly adjusted EBITDA cash flow, which dipped to a negative €43.6 million ($46.6 million), nearly double the Q4 2021 reading of €22.5 million ($24.1 million). Sportradar repaid its outstanding €220 million ($235.4 million) debt and is now, ladies and gentlemen, debt-free.
Full-Year Spectacle: A Mixed Bag
For the entire year, Sportradar reported €730.2 million ($781.3 million) in revenue, a 30% year-over-year increase. The driver of this growth was the RoW Betting segment, which expanded by 26%, and the US segment, which soared by 78% compared to 2021. Adjusted EBITDA hit €125.8 million ($134.6 million), a 23% increase.
Despite the challenging macroeconomic conditions, Sportradar displayed impressive performance across key metrics, reporting a second consecutive profitable quarter in the US. The company finished the year with €10.5 million ($11.2 million) in profit, down 18% from the previous year.
Sportradar closed 2022 with €243.8 million ($260.8 million) in cash and cash equivalents and undrawn credit facilities of €463.8 million ($496.3 million). The company also paid off €420 million ($449.4 million) of its outstanding debt.
2023: A Promising Year Ahead
Looking towards the future, Sportradar has projected a 2023 revenue outlook ranging from €902 million ($965.1 million) to €920 million ($984.4 million), representing a growth of between 24% and 26% year-on-year. Adjusted EBITDA is expected to fall in the range of €157 million ($168 million) to €167 million ($178.7 million), reporting growth of 25% to 33% compared to 2022.
As Koerl put it, "Our continued partnerships with leading global sports bodies, pioneering efforts in cutting-edge tech like AI and computer vision, as well as a team boasting a passion for delivering top-tier solutions to our clients, have us all jazzed about our growth in 2023 and even further into the future."
Sources:1. Investor Relations | Sportradar AG | Full year 2024 results5. Investor Relations | Sportradar AG | Revenue projection 2023-20262. Bloomberg: Sportradar Aims to Double Digital-Media Revenue by 20263. Google Finance: Sportradar Group AG (GTR:DE)4. Investor Relations | Sportradar AG | Annual Reports & Financial Statements
- The Q4 2022 revenue for Sportradar Group AG was €206.3 million ($220.7 million), with 51% coming from the Rest of the World (RoW) Betting segment, showcasing an innovation in sports betting technology.
- In 2023, Sportradar has a projected revenue outlook of €902 million to €920 million, representing an outlook for growth in the finance and business sector.
- Despite a slight dent in annual profit, the US operations significantly contributed to Sportradar's Q4 2022 revenue with a 77% increase, demonstrating the company's expansion in the sports and technology market.
- Sportradar ended 2022 debt-free, having repaid its €220 million ($235.4 million) debt, which is a positive development for the company's future financials.
