The leading global technology company that delivers innovative business-to-business solutions for the sports betting industry, Sportradar Group AG, released its fourth quarter and 2022 results. Announced Wednesday, the latest results show strong growth in revenue, as well as adjusted EBITDA.
Sportradar enjoyed a strong end of the year, with the fourth quarter of 2022 revenue increasing to €206.3m ($220.7m). When compared to the corresponding period in 2021, the result from Q4 2022 represented a growth of 35%.
Adjusted EBITDA for the fourth quarter of 2022 increased as well, hitting €35.1m ($37.6m) or up by 64% when compared to the same period in 2021. In a statement released by Sportradar, the company noted that the increase in adjusted EBITDA for Q4 2022 was the "result of strong revenue growth despite increased investment for growth."
Focusing on operating segments, the company revealed that the Rest of World (RoW) betting segment was responsible for 51% of the total revenue during the quarter. This segment's revenue increased by 29% hitting €105.9m ($113.3m) when compared to Q4 2021. According to Sportradar, the RoW betting segment was primarily driven by the strong performance of Managed Betting Services which received a boost from the FIFA World Cup.
On the other hand, the company's US operating segment reported an increase in revenue of 77% for the fourth quarter of 2022 hitting €41.2m ($44.0m). Sportradar acknowledged that this outstanding performance was the result of "strong market growth and positive adoption of in-play betting."
Ulrich Harmuth, Sportradar's Interim Chief Financial Officer, explained that the fourth quarter of 2022 results reaffirm the positive momentum gained by the company throughout the year. "We demonstrated operational leverage in our business model, despite making significant investments in our products and technology, streamlined our organization to be more customer-centric, and strengthened our balance sheet by repaying our debt," he said.
In conclusion, Harmuth pointed out: "Our 2023 guidance of revenue growth and margin expansion reflects the investments we have made to date and the growing global sports market opportunity."
When it comes to the full year 2022 results, Sportradar once again reported strong growth and exceptional performance. The company's revenue for the full year hit €730.2m ($781.3m), representing an increase of 30% when compared to the 2021 results.
Similarly to the Q4 results, RoW betting reported strong performance in 2022 with revenue increasing by 26%. Additionally, Sportradar reported that it has seen 78% growth from its US-facing operations, judging by the latest figures.
Carsten Koerl, Sportradar's Chief Executive Officer, shared his excitement saying: "I am very pleased with our strong results driven by exceptional execution this past year." He pointed out that the company reported strong growth and excellent performance "despite challenging macroeconomic conditions."
Finally, Koerl noted: "Our continued long-term partnerships with leading global sports bodies and innovation across new technologies such as artificial intelligence and computer vision and as important, a team passionate about delivering solutions to our clients, make us very excited about our growth in 2023 and beyond."
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