Sportradar boasts strong revenue spike in Q2

Global technology company that focuses on sports data Sportradar has posted one of its strongest quarterly results to date. The company’s results were boosted by an overall interest in and resurgence of mainstream sports as well as Sportradar’s own global standing with sports leagues and teams, delivering powerful business-to-business solutions for the sports betting industry worldwide.

The convergence of these trends resulted in a steadfast revenue increase for the company in the second quarter with revenue for the quarter reaching $186m, up 23% from Q2 2021. In the United States, business improved by 66% to $30.5m marked by the shifting tide in public and regulatory perception and the legalization of sports betting.

Adjusted EBITDA in the second quarter decreased to $28.9m, down 13%, due to incurred costs from organic and inorganic headcount growth, the company said in a statement to investors. Sportradar remained confident that it is on track to continue delivering strong results throughout the remainder of the year. Cash and cash equivalents stood at €715.6m at the end of the reporting period on June 30, 2022.

Sportradar made significant efforts to reduce debt as it seeks to remain flexible and be prepared to invest in new opportunities that translate into long-term success and profitability. Completing the second quarter, the company updated its full-year 2022 outlook for revenue but has opted to maintain its outlook for Adjusted EBITDA.

These developments were welcomed by Sportradar’s top brass with company CEO Carsten Koerl confirming that quarterly revenue had exceeded expectations. "Confident about the momentum we have built inour business, we are raising our revenue guidance for the year," Koerl added.

The executive added that Sportradar had proven itself as good stewards of capital and pointed out the strong cash flow generation the company was able to achieve over the reported period. This would undoubtedly lead to a reduction of outstanding debt, half of which was paid over the quarter, Koerl noted.

Koerl also commented on the departure of the firm’s Chief Financial Officer, Alex Gersh, to whom Sportradar owed a lot. Gersh is stepping down as he prepares to pursue new ventures in the United States with Ulrich Harmuth now stepping in as interim CFO in his stead.

The company has used its technology not only to boost commercial results but also to help athletes lead healthier lifestyles within the sports ecosystem. The company has already expanded in the third quarter as well, driving the first foray in basketball in Turkey with the Turkish Basketball Federation.

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