Tag: Sports Betting

Sportradar Group AG (NASDAQ: SRAD) (“Sportradar” or the “Company”), a leading global sports technology company focused on creating immersive experiences for sports fans and bettors, today announced financial results for its third quarter ended September 30, 2023.

Carsten Koerl, Chief Executive Officer of Sportradar said: “As the leader in our industry, we aim to consistently deliver value to our clients, partners and shareholders. For 2023 we remain on track to deliver a strong growth year and are well positioned to maintain that momentum into 2024. This week we announced a reduction in our global workforce as part of a broader set of strategic initiatives that will enable us to further strengthen our client-centric organization and focus on the market opportunities ahead of us.”

Third Quarter 2023 Financial Highligh

• Revenue in the third quarter of 2023 increased 12% to €201.0 million compared with the third quarter of 2022 with growth across all segments.
• Total Profit from continuing operations for the third quarter of 2023 was €4.6 million compared with €12.8 million for the same quarter last year. The Company’s Adjusted EBITDA¹ for the same period increased 38% to €50.5 million compared with the third quarter of 2022, primarily due to strong revenue growth and higher operating leverage.
• Total Profit from continuing operations, as a percentage of revenue, for the third quarter of 2023 was 2% compared with 7% for the same quarter last year. Adjusted EBITDA margin¹ was 25% in the third quarter of 2023, an increase of 471 bps, compared with 20% in the prior year period.
• The Company’s customer Net Retention Rate¹ (NRR) was 116% in the third quarter of 2023, demonstrating the Company’s strength in cross selling and upselling to its clients.
• As of September 30, 2023, Sportradar had total liquidity of €509.7 million including cash and cash equivalents of €289.7 million and an undrawn credit facility of €220.0 million.

¹ Non-IFRS financial measure or operating metric; see “Non-IFRS Financial Measures and Operating Metrics” and accompanying tables for further explanations and reconciliations of non-IFRS measures to IFRS measures.

Reduction in Global Workforce

This week, the Company announced a reduction in its global workforce as part of a broader set of strategic initiatives. This is expected to streamline its operating structure, improve product ROI and portfolio optimization. When completed, this should result in an approximate 10% reduction in 2023 labor cost run rates and contribute positively to future operating leverage.

Recent Company Highlights

• Sportradar and BetMGM extended their partnership for official NBA data. For the first time, Sportradar will provide BetMGM products and services that leverage NBA optical tracking data as a result of its exclusive partnership with the NBA. This will enable BetMGM to grow its prop markets, same-game parlays, as well as in-play betting market.
• Sportradar has been selected by the Taiwan Sports Lottery Company, Ltd. to power its Sports Lottery with a customized omnichannel sportsbook and player management solution. As part of a consortium, Sportradar will operate the Sports Lottery through 2033 using the company’s ORAKO end-to-end sportsbook and player account management system.
• NASCAR and Sportradar announced a four-year extension of their long-term media rights partnership, which now includes official betting data. This agreement will include live timing and scoring data and expanded betting content.
• Sportradar has been chosen by the Tennis Channel to power the launch of the network’s direct-to-consumer (DTC) streaming platform, which, for the first time, will include access to Tennis Channel’s marquee, 24/7 linear-channel alongside thousands of hours of live and on-demand matches and original programming.
• Sportradar received several industry recognitions, including Best Live Streaming Supplier at EGR B2B Awards 2023, Marketing & Services Provider of the Year at SBC Awards 2023 and Sports Betting Provider of the Year at Sigma Asia Awards 2023. Additionally, Sportradar was included on Business Insider’s “Leaders in AI 100” list.

Segment Information

RoW Betting

• Segment revenue in the third quarter of 2023 increased by 11% to €112.2 million compared with the third quarter of 2022. This growth was driven primarily by increased sales of the Company’s Live Odds and Live Data products, which grew 18% year over year.
• Segment Adjusted EBITDA¹ in the third quarter of 2023 increased by 16% to €56.1 million compared with the third quarter of 2022. Segment Adjusted EBITDA margin¹ improved to 50% from 48%, compared with the third quarter of 2022.

RoW Audiovisual (AV)

• Segment revenue in the third quarter of 2023 increased by 15% to €38.0 million compared with the third quarter of 2022. Revenue growth was driven by the new CONMEBOL deal and growth in sales to new and existing customers.
• Segment Adjusted EBITDA¹ in the third quarter of 2023 increased by 5% to €13.3 million compared with the third quarter of 2022. Segment Adjusted EBITDA margin¹ decreased to 35% from 38% compared with the third quarter of 2022.

United States

• Segment revenue in the third quarter of 2023 increased by 11% to €35.1 million compared with the third quarter of 2022. Results were primarily driven by growth of 19% collectively in betting and gaming, and audiovisual products.
• Segment Adjusted EBITDA¹ in the third quarter of 2023 was €8.2 million compared with €3.4 million in the third quarter of 2022, indicating the strong improvement in operational leverage in the U.S. business model despite continuous investments. Segment Adjusted EBITDA margin¹²improved to 23% from 11%, compared with the third quarter of 2022.

The tables below show the information related to each reportable segment for the three and nine month periods ended September 30, 2023, and 2022.

² Unallocated corporate expenses primarily consist of salaries and wages for management, legal, human resources, finance, office, technology and other costs not allocated to the segments.

2023 Annual Financial Outlook

Sportradar is providing an updated annual outlook for revenue and Adjusted EBITDA¹ for fiscal 2023 as follows:

• Revenue in the range of €870 million to €880 million, representing year-on-year growth between 19% and 21%.
• Adjusted EBITDA¹ in the range of €162 million to €167 million, representing year-on-year growth between 29% and 33%.
• Adjusted EBITDA margin¹ in the range of 18.4% to 19.2%.

Conference Call and Webcast Information

Sportradar will host a conference call to discuss the third quarter 2023 results today, November 1, 2023, at 8:00 a.m. Eastern Time. Those wishing to participate via webcast should access the earnings call through Sportradar’s Investor Relations website. An archived webcast with the accompanying slides will be available at the Company’s Investor Relations website for one year after the conclusion of the live event.

Turnover on World Pool bet types on British Champions Day totalled HK$202.7 million (£21.4 million), bringing the figure for all races commingled during the 19 World Pool days in the UK and Ireland to HK$4.7 billion (£475 million). 

King George Day at Ascot saw the biggest jump in turnover, rising from HK$253m to a new record of HK$287m, an increase of over 13%, while 2,000 Guineas Day as well as days one and three of Royal Ascot also posted year-on-year increases. 

The overall total is only marginally down on 2022’s figure of HK$4.9bn, but still significantly up on 2021 (HK3.9 billion). 

Prize money won across the 131 World Pool races in the UK and Ireland this year has hit a record high of £32 million, while the World Pool Moment of the Day initiative has seen £68,000 given out – £4,000 for each of the 17 World Pool Moment of the Day winners.  

Ebbe Verhestraeten, groom of Big Rock, was awarded Moment of the Day on Saturday and he will have a chance of winning a VIP trip for four to Hong Kong next year if he is to win World Pool Moment of the Year.   

Outside of the UK and Ireland, World Pool meetings in Dubai, Saudi Arabia, South Africa and Australia have all posted record turnover numbers, while World Pool will be active for two further meetings in Australia: Cox Plate Day and Victoria Derby Day. 

Earlier on Saturday, the Caulfield Cup broke the record for the highest turnover on a World Pool race in Australia with HK$54.24 million (AUD$10.98 million) bet into the pool, eclipsing the HKD$51.54 million (AUD$10.43 million) bet on the previous weekend’s Everest. Only two World Pool races this year – the Queen Elizabeth II Jubilee Stakes and the Dubai World Cup – have had bigger pools.  

In the UK and Ireland, World Pool is accessed via the Tote, at racecourses, online and via the Tote App. All customers betting directly with the Tote benefit from Tote Guarantee which ensures all Win bets will always exceed or match the industry Starting Price.

Tote value for UK and Irish customers betting into World Pool on British Champions Day:

·        Tote Win beat the Industry Starting Price in 5 out of the 6 races and matched on the remaining occasions

·        Tote Win overround was 112% versus an industry Starting Price of 120%

·        Tote Exacta beat Forecast in 6 out of the 6 races

·        Tote Trifecta beat Tricast in 5 out of the 6 races

Tote value for customers betting on the 19 British and Irish World Pool days 2023:

·        Tote Win beat the Industry Starting Price in 66% of races and matched on the remaining occasions

·        A £1 bet with the Tote on every winner on British and Irish World Pool days in 2023 paid £263 more than the industry Starting Price

·        Tote Win overround was 109% versus an industry Starting Price of 122%

·        Tote Exacta beat Forecast in 78% of races

·        Tote Trifecta beat Tricast in 84% of races races where the Tricast operated

Michael Fitzsimons, Executive Director, Wagering Products of the HKJC, said: “We are really pleased with how World Pool has been received in the UK and Ireland again this year and the turnover figures look strong against a challenging economic backdrop. 

“There are many more opportunities for growth in the UK and Ireland and we look forward to being able to roll out World Pool at even more of the season’s flagship race days. Having the Lockinge, the Irish Derby and the Sun Chariot as World Pool events for the first time this year worked really well, and we look forward to adding more days in the future.  

“We’d like to thank all of our partners, including the UK Tote, Racecourse Media Group and Ascot Racecourse – who have all been with us since World Pool was first created in 2019 – for all their hard work in making it another highly successful season.” 

Alex Frost, Chief Executive of the UK Tote, said: “We are delighted that British and Irish racing has enjoyed such a successful World Pool season in 2023. It is incredibly positive to see revenues from World Pool supporting racecourses’ investment in prize money which was at a new record of £32 million for World Pool races this year. This highlights the increasingly important role pool betting is playing the in the future sustainability of the sport.  

“Following our new five-year agreement with the Hong Kong Jockey Club, making the UK Tote the exclusive partner for World Pool in the UK and Ireland, we look forward to collaborating on exciting developments, including new bet types and further improvements to the customer experience for the 2024 season.”  

Martin Stevenson, Chief Executive Officer of Racecourse Media Group (RMG), which represents the media interests of The Jockey Club, Newbury, Goodwood, York, The Curragh and Leopardstown racecourses, said: “World Pool has been a hugely important initiative for British and Irish racing to grow revenues and prize money, and it’s been great to see such strong performance again in 2023. 

“We’ve added three new race days to the calendar this year with the Lockinge, Irish Derby and Sun Chariot, and hopefully we’ll be able to add some more in 2024. 

“It’s been a pleasure working with the Hong Kong Jockey Club, UK Tote and all of our racecourses on World Pool this season and we are already looking forward to 2024.”  

SIS (Sports Information Services), the leading multi-content supplier of 24/7 live betting services, has successfully launched its industry-leading horse and greyhound racing content with Polish operator BETTERS.

The launch brings high-quality racing content from around the world to bettors in Poland through the ambitious operator, which was launched in the country’s regulated market three years ago, further increasing the reach of SIS across Eastern Europe.

SIS’ premium live horse racing events include top-class action from the UK and Ireland, in addition to international meetings from Latin America, Saudi Arabia, Australia and the United States. BETTERS customers are also benefiting from exclusive UK, Irish and Mexican greyhound racing.

SIS’ 24/7 Live Betting Content provides over 76,000 live racing events every year, delivered as an end-to-end solution, including live streamed pictures, data, and on-screen graphics with betting triggers, in addition to an extensive range of markets and prices to provide seamless betting experiences.

Łukasz Łukasik, Head of Product, at BETTERS, said: “We want to serve our loyal customers with the widest range of top-quality betting opportunities, right around the clock. By launching the leading racing portfolio from SIS, we are providing them with exactly that, while also further strengthening our position as one of Poland’s online sportsbooks.”

Bartlomiej Michalek, Commercial Manager, UK & Europe at SIS, said: “As we continue to expand across Eastern Europe, new partnerships such as this one with BETTERS will be vital in putting our product in front of fresh audiences. This launch once again illustrates our continued commitment to providing cutting-edge, revenue-driving 24/7 content to operators in the region.”

Award-winning sportsbook in line to scoop industry accolade for second year

Altenar, the leading sportsbook and iGaming software provider, has been shortlisted for Sports Betting Provider at the EGR Italy Awards 2023 – reaffirming its market-leading position.

The sportsbook supplier’s place on the shortlist comes after a record-breaking commercial year, with  a 98% boost in users, 142% increase in bet counts and an 87% increase in turnover.

The prestigious awards, which recognise the successes of Italian betting and gaming industry’s best suppliers and operators, are set to take place in on November 6, at Rome Cavalieri, in Rome, Italy.

Altenar has received multiple award wins in the past year, including the MiGEAs, EGR Nordics, SBC Latin America and the Baltic and Scandinavian Gaming Awards, and has announced a series of high-profile partnerships, most recently with SpinBet and WSF Odds.

Commenting on the shortlist, Francesco Papallo, Regional Director at Altenar, said: “We are incredibly proud to have been shortlisted for the EGR Italy Awards 2023, especially after winning the award last year in recognition of our industry-leading user interface and gold standard sportsbook technology.

“We eagerly await the chance to celebrate the success of our industry friends and partners at the ceremony in November and hope to achieve a second win ourselves.”

Licensed across a total of 13 major global markets, including certifications from the UKGC and MGA, Altenar has established itself as the sportsbook provider of choice for multiple leading operators.