The Sportradar Group announced financial results for its first quarter ending March 31, 2023, which include growth in US revenue and adjusted EBITDA.
Sportradar, known for providing B2B solutions within the global sports betting industry, reported $226.2 million in revenue, up 24% year-over-year.
Additionally, the company’s US segments grew revenue by 55% to $43.3 million compared to 2022.
First quarter 2023 highlights
In a press release detailing the company’s financial results, Sportradar Chief Executive Officer Carsten Koerl said:
“We started fiscal 2023 on solid footing, as we continued to deliver strong top-line growth, predominately by growing our value and adding products such as MBS and Live Odds in the Rest of World business.”
Koerl also said the company’s continued investment in AI and computer vision (CV) would enable Sportradar to remain a market leader. “We are also demonstrating operational leverage as we continue to focus on cost discipline across the organization and invest prudently to grow our top line.
We are confident that our ongoing product innovation in AI and computer vision will enable us to remain a market leader and increase shareholder value for our investors.”
Sportradar reaps benefits from sports betting’s US expansion
On top of increased revenue, the company’s adjusted EBITDA in Q1-2023 was $40.0 million, up 37% compared to Q1-2022.
According to the financial report:
“[The increased EBITA] demonstrates operational leverage from higher revenue despite increased investment into Artificial Intelligence (AI) for liquidity trading, and Computer Vision technology.”
Sportradar has shown growth since 2022. But in Q1, there have been significant costs and expenses:
- Purchasing services and licenses for sports rights increased by $12.7 million to $53 million.
- Personal expenses also increased by $27.6 million to $84.9 million, primarily due to investments in AI and CV.
Regardless, Koerl said the company and the US sports betting industry have much to gain from additional states coming on board.
“In 2022 we doubled from three years ago from a volume perspective. We are still at the start, with big states to come. California, Texas, Florida – they will significantly change the picture,” Koerl said.
“There is a bright future from the number of people who have access to legal sports betting in the US. We saw an acceleration last year and we are seeing it also this year. We see a trend in the US that will go into more live betting, and we always said this.”