Sportradar reported a 23% increase in second-quarter revenue, beating the sports data provider’s expectations for the sports betting industry. In the second quarter, the company generated €177.2 million ($180 million), an increase of €30 million when compared to the same period in 2021.
However, the increase in costs outweighs the supplier’s profitability. In the second quarter, Sportradar’s adjusted EBITDA decreased from €31.6 million to €27.6 million — a decrease of 13%. The company also recorded a reduced EBITDA margin from 22% to 16%.
The data provider attributed this drop to costs associated with “further growth in the number of workers” as well as new and renewed sporting rights contracts. In total, this latter area saw costs rise by €13.8 million to €48.7 million, mainly due to new rights acquired in 2022 from the NHL, UEFA and ATP.
Staff expenses, however, jumped from €17.6 million to €64.4 million, with the company’s headcount rising from 789 to 3,520 as of June 30. Other expenses include acquired services and licenses, which increased €10.6 million year-on-year as a result of higher costs associated with content creation and processing.
Given top-tier growth, Sportradar has resolved to improve its full-year revenue guidance, expecting to generate between €695 million and €715 million. However, the company chose to keep its adjusted EBITDA in the same way.
“As the world’s leading provider of technology solutions for the sports betting industry, our second quarter revenue exceeded our expectations for the period, growing 23% year-on-year,” said Carsten Koerl, CEO of Sportradar.
“Confident of the momentum we’ve built into our business, we’ve increased our revenue guidance for the year.”
He added: “We remain as confident as ever in the momentum and scalability of our business, and in our ability to deliver results in the face of global challenges and economic conditions.”
