Sportradar reported a 23% revenue increase in the second quarter, exceeding the provider’s expectations.
Sportradar earned €177.2 million ($180 million) in the second quarter, a €30 million increase over the previous year.
Rising costs, however, offset the provider’s profitability. Sportradar’s adjusted EBITDA fell 13% in the second quarter, from €31.6 million to €27.6 million. Sportradar also experienced a decrease in adjusted EBITDA margin, which fell from 22% to 16%.
The provider attributed the decline to the costs of “additional organic and inorganic headcount growth,” as well as new and renewed sport rights contracts.
In total, costs in this area increased by €13.8 million to €48.7 million, owing primarily to new acquired rights in 2022 for the NHL, UEFA, and ATP, as well as a “normalised schedule in many sports.”
Meanwhile, personnel expenses increased by €17.6 million to €64.4 million, with the company’s employee headcount increasing by 789 to 3,520 as of 30 June.
Other costs include purchased services and licenses, which increased by €10.6 million year on year, owing primarily to increased costs associated with content creation and processing.
Given Sportradar’s top-line growth, the company has raised its full-year revenue forecast. It now expects to generate between €695 million and €715 million in 2022. Sportradar, on the other hand, chose to maintain its adjusted EBITDA guidance.
“As the world’s leading provider of sports betting technology solutions, our Q2 revenue exceeded our expectations for the quarter, growing 23% year on year,” said Carsten Koerl, Sportradar’s CEO.
“We are raising our revenue guidance for the year because we are confident in the momentum we have built in our business.”
“We remain as confident as ever in our business’s leverage and scalability, as well as our ability to deliver results in the face of global challenges and economic conditions,” he added.
The company also announced Alex Gersh’s departure as Chief Financial Officer (CFO), who has decided to leave to accept another position in the United States.
Ulrich Harmuth has been appointed as interim CFO.