The global sports tech giant reported its Q4 and full-year earnings for 2023 on Wednesday, claiming a 20% increase in topline growth for the third straight year.
Sportradar’s revenue has more than doubled in just three years. It brought in €878 million in revenue in 2023, a 20% improvement from the year prior. Its betting business boosted revenue 20% YoY too with €467 million driven by increased sales of its MBS (+29%) and Live Odds (+21%) products. Its Audiovisual segment also grew by 14% YoY to €182 million. The company claimed 33% YoY growth in Adjusted EBITDA too with €167 million.
US Growth
Its US business achieved profitability with Adjusted EBITDA of €19 million at an 11% margin.
Carlston Koerl, Sportradar’s CEO, exuded confidence that this US-based growth will continue into FY2024, saying “We expect to outperform the market growth in the US” this year and that leadership expects the US market to be “more profitable than we have been” in 2023.
Sportradar drove 30% revenue growth in the US market in FY2023 benefiting primarily by a 72% increase in its Betting & Gaming and Audiovisual segments.
Hyper-Personalization and the Fan Experience
A major collaboration between Sportradar and the NBA just kicked off this week with the announcement of “emBET” coming to NBA League Pass which will allow users to quickly make in-game wagers through FanDuel and DraftKings.
Koerl believes this is a sign of things to come for the intersection of sports technology and the fan experience.
“So the future of this is hyper-personalization, trying to embed all the data points and all this information, and giving a very enriched digital product to the sport fan.”
And he doesn’t think it’ll stop at just live betting options either.
“It can go into online sports betting, but it’s not limited. It’s merchandising, it’s ticketing, it’s sponsoring.”
High Hopes For 2024
Overall, Sportradar is targeting at least 20% growth for both revenue and Adjusted EBITDA in FY2024. That would put the company at €1.05 billion in revenue and at least €200 million in AEBITDA.
Koerl thinks there is a major opportunity in the Brazilian market, where he feels “the opportunity here is probably €5 billion GGR per year for the next three years.”
The company has locked in ~100% of the US market for official NBA data with last year’s signing of Caesars and BetMGM. It generated over 10 billion live odds changes in support of 800 betting operators last year. It covers over 3 million plays and events for MLB, NHL, NBA, and NFL globally across 900 media partners and supports 10,000 broadcasts in the US.
Its Board of Directors approved a €200 million share repurchase program due to its confidence in continued growth.
