Sportradar Retains Momentum in Q1 2023 as Net Profit Falls

In its first earnings call for the year, Sportradar registered strong growth across its revenue and adjusted EBITDA metrics. The company ended the three-month period on March 31, 2023, with a strong increase in its quarterly revenue, which was up 24% from the previous quarter, posting €207.6 million ($226.2 million), keeping its momentum from the fourth quarter of 2022.

Strong Financial Performance in the United States

The company saw the RoW betting segment account for 52% of its total revenue, which was up 25% at €108.5 million ($118.3 million). This segment was primarily driven by the performance posted in the Managed Betting Services and Live Odds verticals.

The quarterly profit stood at €6.8 million ($7.45 million), which was down from the €8.2 million ($8.98 million) reported in 2022, so a small decline, nevertheless. Sportradar’s adjusted EBITDA in the first quarter hit €36.7 million ($40 million), or an increase of 37%.

Sportradar similarly boasted a strong customer Net Retention Ratio that went up 120% in the first quarter of the year. The United States performed well for Sportradar during the quarter, with the results hitting €39.7 million ($43.3 million) during the reported period, or up by 55% from 2022.

Core betting data products and the ad:s product were largely tied to this regional success. There have been more costs and expenses during the period, however. For example, the purchased services and licenses in Q1 2023 increased to €48.4 million ($53 million), the company said.  Personnel expenses also went up in the first quarter to €77.5 million ($84.86 million). Another big expenditure was the total sports rights costs which stood at €51.2 million ($56.06 million) in the quarter.

Business Highlights and Company Successes

The company also remarked on some of its business successes over the past months, including the renewal of its partnership with Big Ten Network. The company successfully integrated its ad:s tech into Snapchat.

Sportradar also won a tender to become the Association of Tennis Professionals (ATP) data and streaming rights owner. Sportradar also demonstrated its ability to safeguard sports from corruption, with the company’s UFDS Annual Report: Betting Corruption and Match-Fixing in 2022 report flagging as many as 1,212 suspicious matches across 12 sports and 92 countries, a 34% increase.

Not least, the company embarked on some executive changes with Gerard Griffin stepping in as its new chief financial officer.