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.
|
Key Financial Metrics |
|
|
|
| |
Q3 |
Q3 |
Change |
| In millions, in Euros€ |
2023 |
2022 |
% |
|
Revenue |
201.0 |
178.8 |
12% |
| Profit for the period from
continuing operations |
4.6 |
12.8 |
(64%) |
| Profit for the period from
continuing operations as a percentage of revenue |
2% |
7% |
-483 bps |
| Adjusted
EBITDA1 |
50.5 |
36.5 |
38% |
| Adjusted EBITDA
margin1 |
25% |
20% |
+471 bps |
| Net Retention
Rate1 |
116% |
118% |
(2%) |
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.
|
|
Three Months Ended September 30, 2023 |
|
in €'000 |
RoW Betting |
RoW Betting AV |
United States |
Total reportable segments |
All other segments |
Total |
|
Segment revenue |
112,167 |
|
38,031 |
|
35,077 |
|
185,275 |
|
15,762 |
|
201,037 |
|
| Segment Adjusted EBITDA |
56,096 |
|
13,296 |
|
8,160 |
|
77,552 |
|
(2,578 |
) |
74,974 |
|
| Unallocated corporate
expenses2 |
|
|
|
|
|
(24,488 |
) |
| Adjusted
EBITDA1 |
|
|
|
|
|
50,486 |
|
| Adjusted EBITDA
margin1 |
50 |
% |
35 |
% |
23 |
% |
42 |
% |
(16 |
%) |
25 |
% |
|
|
Three Months Ended September 30, 2022 |
|
in €'000 |
RoW Betting |
RoW Betting AV |
United States |
Total reportable segments |
All other segments |
Total |
|
Segment revenue |
100,919 |
|
33,090 |
|
31,556 |
|
165,565 |
|
13,270 |
|
178,835 |
|
| Segment Adjusted EBITDA |
48,215 |
|
12,624 |
|
3,446 |
|
64,285 |
|
(3,854 |
) |
60,431 |
|
| Unallocated corporate
expenses2 |
|
|
|
|
|
(23,947 |
) |
| Adjusted
EBITDA1 |
|
|
|
|
|
36,484 |
|
| Adjusted EBITDA
margin1 |
48 |
% |
38 |
% |
11 |
% |
39 |
% |
(29 |
%) |
20 |
% |
|
|
Nine Months Ended September 30, 2023 |
|
in €'000 |
RoW Betting |
RoW Betting AV |
United States |
Total reportable segments |
All other segments |
Total |
|
Segment revenue |
334,816 |
|
132,154 |
|
112,773 |
|
579,743 |
|
45,292 |
|
625,035 |
|
| Segment Adjusted EBITDA |
154,525 |
|
41,055 |
|
20,425 |
|
216,005 |
|
(8,285 |
) |
207,720 |
|
| Unallocated corporate
expenses2 |
|
|
|
|
|
(80,461 |
) |
| Adjusted
EBITDA1 |
|
|
|
|
|
127,259 |
|
| Adjusted EBITDA
margin1 |
46 |
% |
31 |
% |
18 |
% |
37 |
% |
(18 |
%) |
20 |
% |
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.
|
|
Nine Months Ended September 30, 2022 |
|
in €'000 |
RoW Betting |
RoW Betting AV |
United States |
Total reportable segments |
All other segments |
Total |
|
Segment revenue |
283,169 |
|
118,754 |
|
86,289 |
|
488,212 |
|
35,688 |
|
523,900 |
|
| Segment Adjusted EBITDA |
136,157 |
|
34,611 |
|
(8,474 |
) |
162,294 |
|
(12,467 |
) |
149,827 |
|
| Unallocated corporate
expenses2 |
|
|
|
|
|
(59,089 |
) |
| Adjusted
EBITDA1 |
|
|
|
|
|
90,738 |
|
| Adjusted EBITDA
margin1 |
48 |
% |
29 |
% |
(10 |
%) |
33 |
% |
(35 |
%) |
17 |
% |
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.
About Sportradar
Sportradar Group AG (NASDAQ: SRAD), founded in 2001, is a
leading global sports technology company creating immersive
experiences for sports fans and bettors. Positioned at the
intersection of the sports, media and betting industries, the
company provides sports federations, news media, consumer platforms
and sports betting operators with a best-in-class range of
solutions to help grow their business. As the trusted partner of
organizations like the NBA, NHL, MLB, NASCAR, UEFA, FIFA, and
Bundesliga, Sportradar covers close to a million events annually
across all major sports. With deep industry relationships and
expertise, Sportradar is not just redefining the sports fan
experience, it also safeguards sports through its Integrity
Services division and advocacy for an integrity-driven environment
for all involved.
For more information about Sportradar, please
visit www.sportradar.com
CONTACT:
Investor Relations:Christin Armacost, CFA,
Manager Investor Relationsinvestor.relations@sportradar.com
Media: Sandra
Lee, EVP of Global Communicationscomms@sportradar.com
Non-IFRS Financial Measures and
Operating MetricsWe have provided in this press release
financial information that has not been prepared in accordance with
IFRS, including Adjusted EBITDA and Adjusted EBITDA margin, as well
as operating metrics, including Net Retention Rate. We use
these non-IFRS financial measures internally in analyzing our
financial results and believe they are useful to investors, as a
supplement to IFRS measures, in evaluating our ongoing operational
performance. We believe that the use of these non-IFRS
financial measures provides an additional tool for investors to use
in evaluating ongoing operating results and trends and in comparing
our financial results with other companies in our industry, many of
which present similar non-IFRS financial measures to investors.
Non-IFRS financial measures should not be
considered in isolation from, or as a substitute for, financial
information prepared in accordance with IFRS. Investors are
encouraged to review the reconciliation of these non-IFRS financial
measures to their most directly comparable IFRS financial measures
provided in the financial statement tables included below in this
press release.
- “Adjusted EBITDA” represents profit
for the period from continuing operations adjusted for share based
compensation, depreciation and amortization (excluding amortization
of sports rights), impairment loss on other financial assets,
remeasurement of previously held equity-accounted investee,
non-routine litigation costs, professional fees for SOX and ERP
implementations, one-time charitable donation for Ukrainian relief
activities, share of loss of equity-accounted investee (SportTech
AG), loss on disposal of equity-accounted investee (SportTech AG),
impairment loss on goodwill and intangible assets, impairment loss
on assets held for sale, foreign currency (gains) losses, finance
income and finance costs, and income tax expense and certain other
non-recurring items, as described in the reconciliation below.
License fees relating to sports rights are a key component of how
we generate revenue and one of our main operating expenses. Such
license fees are presented either under purchased services and
licenses or under depreciation and amortization, depending on the
accounting treatment of each relevant license. Only licenses that
meet the recognition criteria of IAS 38 are capitalized. The
primary distinction for whether a license is capitalized or not
capitalized is the contracted length of the applicable license.
Therefore, the type of license we enter into can have a significant
impact on our results of operations depending on whether we are
able to capitalize the relevant license. Our presentation of
Adjusted EBITDA removes this difference in classification by
decreasing our EBITDA by our amortization of sports rights. As
such, our presentation of Adjusted EBITDA reflects the full costs
of our sports right's licenses. Management believes that, by
deducting the full amount of amortization of sports rights in its
calculation of Adjusted EBITDA, the result is a financial metric
that is both more meaningful and comparable for management and our
investors while also being more indicative of our ongoing operating
performance. We present Adjusted EBITDA because management believes
that some items excluded are non-recurring in nature and this
information is relevant in evaluating the results of the respective
segments relative to other entities that operate in the same
industry. Management believes Adjusted EBITDA is useful to
investors for evaluating Sportradar’s operating performance against
competitors, which commonly disclose similar performance measures.
However, Sportradar’s calculation of Adjusted EBITDA may not be
comparable to other similarly titled performance measures of other
companies. Adjusted EBITDA is not intended to be a substitute for
any IFRS financial measure. Items excluded from Adjusted EBITDA
include significant components in understanding and assessing
financial performance. Adjusted EBITDA has limitations as an
analytical tool and should not be considered in isolation, or as an
alternative to, or a substitute for, profit for the period, revenue
or other financial statement data presented in our consolidated
financial statements as indicators of financial performance. We
compensate for these limitations by relying primarily on our IFRS
results and using Adjusted EBITDA only as a supplemental
measure.
- “Adjusted EBITDA margin” is the
ratio of Adjusted EBITDA to revenue.
In addition, we define the following operating
metric as follows:
-
“Net Retention Rate” is calculated for a given period by starting
with the reported Trailing Twelve Month revenue, which includes
both subscription-based and revenue sharing revenue, from our top
200 customers as of twelve months prior to such period end, or
prior period revenue. We then calculate the reported trailing
twelve-month revenue from the same customer cohort as of the
current period end, or current period revenue. Current period
revenue includes any upsells and is net of contraction and
attrition over the trailing twelve months but excludes revenue from
new customers in the current period. We then divide the total
current period revenue by the total prior period revenue to arrive
at our Net Retention Rate.
The Company is unable to provide a reconciliation of Adjusted
EBITDA to profit (loss) for the period, its most directly
comparable IFRS financial measure, on a forward- looking basis
without unreasonable effort because items that impact this IFRS
financial measure are not within the Company’s control and/or
cannot be reasonably predicted. These items may include but are not
limited to foreign exchange gains and losses. Such information may
have a significant, and potentially unpredictable, impact on the
Company’s future financial results.
Safe Harbor for Forward-Looking
StatementsCertain statements in this press release may
constitute “forward-looking” statements and information within the
meaning of Section 27A of the Securities Act of 1933, Section 21E
of the Securities Exchange Act of 1934, and the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995 that relate to our current expectations and views of future
events, including, without limitation, statements regarding future
financial or operating performance, planned activities and
objectives, anticipated growth resulting therefrom, market
opportunities, strategies and other expectations, and expected
performance for the full year 2023. In some cases, these
forward-looking statements can be identified by words or phrases
such as “may,” “might,” “will,” “could,” “would,” “should,”
“expect,” “plan,” “anticipate,” “intend,” “seek,” “believe,”
“estimate,” “predict,” “potential,” “projects”, “continue,”
“contemplate,” “confident,” “possible” or similar words. These
forward-looking statements are subject to risks, uncertainties and
assumptions, some of which are beyond our control. In addition,
these forward-looking statements reflect our current views with
respect to future events and are not a guarantee of future
performance. Actual outcomes may differ materially from the
information contained in the forward-looking statements as a result
of a number of factors, including, without limitation, the
following: economy downturns and political and market conditions
beyond our control, including the impact of the Russia/Ukraine and
other military conflicts and foreign exchange rate fluctuations;
the global COVID-19 pandemic and its adverse effects on our
business; dependence on our strategic relationships with our sports
league partners; effect of social responsibility concerns and
public opinion on responsible gaming requirements on our
reputation; potential adverse changes in public and consumer tastes
and preferences and industry trends; potential changes in
competitive landscape, including new market entrants or
disintermediation; potential inability to anticipate and adopt new
technology; potential errors, failures or bugs in our products;
inability to protect our systems and data from continually evolving
cybersecurity risks, security breaches or other technological
risks; potential interruptions and failures in our systems or
infrastructure; our ability to comply with governmental laws,
rules, regulations, and other legal obligations, related to data
privacy, protection and security; ability to comply with the
variety of unsettled and developing U.S. and foreign laws on sports
betting; dependence on jurisdictions with uncertain regulatory
frameworks for our revenue; changes in the legal and regulatory
status of real money gambling and betting legislation on us and our
customers; our inability to maintain or obtain regulatory
compliance in the jurisdictions in which we conduct our business;
our ability to obtain, maintain, protect, enforce and defend our
intellectual property rights; our ability to obtain and maintain
sufficient data rights from major sports leagues, including
exclusive rights; any material weaknesses identified in our
internal control over financial reporting; inability to secure
additional financing in a timely manner, or at all, to meet our
long-term future capital needs; risks related to future
acquisitions; and other risk factors set forth in the section
titled “Risk Factors” in our Annual Report on Form 20-F for the
fiscal year ended December 31, 2022, and other documents filed with
or furnished to the SEC, accessible on the SEC’s website at
www.sec.gov and on our website at https://investors.sportradar.com.
These statements reflect management’s current expectations
regarding future events and operating performance and speak only as
of the date of this press release. One should not put undue
reliance on any forward-looking statements. Although we believe
that the expectations reflected in the forward-looking statements
are reasonable, we cannot guarantee that future results, levels of
activity, performance and events and circumstances reflected in the
forward-looking statements will be achieved or will occur. Except
as required by law, we undertake no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise, after the date on which
the statements are made or to reflect the occurrence of
unanticipated events.
SPORTRADAR GROUP AGINTERIM CONDENSED
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME(Expressed in thousands of Euros)
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
| Continuing
operations |
|
|
|
|
|
|
|
|
Revenue |
201,037 |
|
|
178,835 |
|
|
625,035 |
|
|
523,900 |
|
| Purchased services
and licenses (excluding depreciation and amortization) |
(45,260 |
) |
|
(47,536 |
) |
|
(138,245 |
) |
|
(127,612 |
) |
|
Internally-developed software cost capitalized |
8,415 |
|
|
4,349 |
|
|
19,665 |
|
|
13,125 |
|
| Personnel
expenses |
(75,359 |
) |
|
(68,278 |
) |
|
(237,223 |
) |
|
(184,974 |
) |
| Other operating
expenses |
(22,817 |
) |
|
(20,296 |
) |
|
(65,000 |
) |
|
(60,975 |
) |
| Depreciation and
amortization |
(38,184 |
) |
|
(31,760 |
) |
|
(137,947 |
) |
|
(133,332 |
) |
| Impairment loss on
trade receivables, contract assets and other financial assets |
(626 |
) |
|
(1,173 |
) |
|
(4,527 |
) |
|
(1,807 |
) |
| Remeasurement of
previously held equity-accounted investee |
- |
|
|
- |
|
|
- |
|
|
7,698 |
|
| Share of loss of
equity-accounted investees |
- |
|
|
(1,167 |
) |
|
(3,699 |
) |
|
(1,264 |
) |
| Loss on disposal
of equity-accounted investee |
- |
|
|
- |
|
|
(8,018 |
) |
|
- |
|
| Impairment loss on
goodwill and intangible assets |
(9,854 |
) |
|
- |
|
|
(9,854 |
) |
|
- |
|
| Impairment loss on
assets held for sale |
(5,600 |
) |
|
- |
|
|
(5,600 |
) |
|
- |
|
| Foreign currency
gains (losses), net |
1,187 |
|
|
11,003 |
|
|
(3,714 |
) |
|
39,858 |
|
| Finance
income |
3,179 |
|
|
1,991 |
|
|
9,781 |
|
|
2,715 |
|
| Finance costs |
(5,554 |
) |
|
(11,312 |
) |
|
(17,672 |
) |
|
(29,446 |
) |
| Net income
before tax from continuing operations |
10,564 |
|
|
14,656 |
|
|
22,982 |
|
|
47,886 |
|
| Income tax
expense |
(5,949 |
) |
|
(1,906 |
) |
|
(11,524 |
) |
|
(4,112 |
) |
| Profit for
the period from continuing operations |
4,615 |
|
|
12,750 |
|
|
11,458 |
|
|
43,774 |
|
|
Discontinued operations |
|
|
|
|
|
|
|
| Loss from
discontinued operations |
(495 |
) |
|
- |
|
|
(451 |
) |
|
- |
|
| Profit for
the period |
4,120 |
|
|
12,750 |
|
|
11,007 |
|
|
43,774 |
|
| Other
Comprehensive Income (Loss) |
|
|
|
|
|
|
|
| Items that
will not be reclassified subsequently to profit or
loss |
|
|
|
|
|
|
|
| Remeasurement of
defined benefit liability |
1 |
|
|
- |
|
|
(88 |
) |
|
1,451 |
|
| Related deferred
tax expense (benefit) |
- |
|
|
- |
|
|
11 |
|
|
(210 |
) |
| |
1 |
|
|
- |
|
|
(77 |
) |
|
1,241 |
|
| Items that
may be reclassified subsequently to profit or loss |
|
|
|
|
|
|
|
| Foreign currency
translation adjustment attributable to the owners of the
company |
3,420 |
|
|
7,369 |
|
|
3,062 |
|
|
15,172 |
|
| Foreign currency
translation adjustment attributable to non-controlling
interests |
(25 |
) |
|
27 |
|
|
(17 |
) |
|
31 |
|
| |
3,395 |
|
|
7,396 |
|
|
3,045 |
|
|
15,203 |
|
| Other
comprehensive income for the period, net of tax |
3,396 |
|
|
7,396 |
|
|
2,968 |
|
|
16,444 |
|
| Total
comprehensive income for the period |
7,516 |
|
|
20,146 |
|
|
13,975 |
|
|
60,218 |
|
| |
|
|
|
|
|
|
|
| Profit
(Loss) attributable to: |
|
|
|
|
|
|
|
|
Owners of the Company |
4,335 |
|
|
12,500 |
|
|
11,246 |
|
|
43,636 |
|
|
Non-controlling interests |
(215 |
) |
|
250 |
|
|
(239 |
) |
|
138 |
|
| |
4,120 |
|
|
12,750 |
|
|
11,007 |
|
|
43,774 |
|
| Total
comprehensive income (loss) attributable to: |
|
|
|
|
|
|
|
|
Owners of the Company |
7,756 |
|
|
19,869 |
|
|
14,230 |
|
|
60,049 |
|
|
Non-controlling interests |
(240 |
) |
|
277 |
|
|
(255 |
) |
|
169 |
|
| |
7,516 |
|
|
20,146 |
|
|
13,975 |
|
|
60,218 |
|
| |
|
|
|
|
|
|
|
| Profit and
Profit from continuing operations per Class A share attributable to
owners of the Company |
|
|
|
|
|
|
|
| Basic |
0.02 |
|
|
0.04 |
|
|
0.04 |
|
|
0.15 |
|
| Diluted |
0.01 |
|
|
0.04 |
|
|
0.04 |
|
|
0.14 |
|
| Profit and
Profit from continuing operations per Class B share attributable to
owners of the Company |
|
|
|
|
|
|
|
| Basic |
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.01 |
|
| Diluted |
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.01 |
|
| |
|
|
|
|
|
|
|
|
Weighted-average number of shares (in
thousands) |
|
|
|
|
|
|
|
| Weighted-average
number of Class A shares (basic) |
207,600 |
|
|
206,876 |
|
|
207,283 |
|
|
206,570 |
|
| Weighted-average
number of Class A shares (diluted) |
220,834 |
|
|
217,744 |
|
|
219,676 |
|
|
217,338 |
|
| Weighted-average
number of Class B shares (basic and diluted) |
903,671 |
|
|
903,671 |
|
|
903,671 |
|
|
903,671 |
|
SPORTRADAR GROUP AGINTERIM CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION(Expressed in
thousands of Euros)
| |
|
September 30, |
December 31, |
|
Assets |
|
2023 |
|
2022 |
| Current
assets |
|
|
|
|
|
Cash and cash equivalents |
|
289,701 |
|
|
243,757 |
|
| Trade receivables |
|
61,438 |
|
|
63,412 |
|
| Contract assets |
|
62,483 |
|
|
50,482 |
|
| Other assets and
prepayments |
|
31,529 |
|
|
42,913 |
|
| Income tax receivables |
|
2,078 |
|
|
1,631 |
|
| |
|
447,229 |
|
|
402,195 |
|
| Non-current
assets |
|
|
|
|
| Property and equipment |
|
44,010 |
|
|
37,887 |
|
| Intangible assets and
goodwill |
|
828,285 |
|
|
843,632 |
|
| Equity-accounted investee |
|
- |
|
|
33,888 |
|
| Other financial assets and
other non-current assets |
|
47,916 |
|
|
44,445 |
|
| Deferred tax assets |
|
24,303 |
|
|
27,014 |
|
| |
|
944,514 |
|
|
986,866 |
|
| Assets held for sale |
|
1,415 |
|
|
- |
|
| Total
assets |
|
1,393,158 |
|
|
1,389,061 |
|
| Current
liabilities |
|
|
|
|
| Loans and borrowings |
|
7,321 |
|
|
7,361 |
|
| Trade payables |
|
180,841 |
|
|
204,994 |
|
| Other liabilities |
|
51,682 |
|
|
65,268 |
|
| Contract liabilities |
|
35,505 |
|
|
23,172 |
|
| Income tax liabilities |
|
12,253 |
|
|
8,693 |
|
| |
|
287,602 |
|
|
309,488 |
|
| Non-current
liabilities |
|
|
|
|
| Loans and borrowings |
|
19,834 |
|
|
15,484 |
|
| Trade payables |
|
258,877 |
|
|
269,917 |
|
| Other non-current
liabilities |
|
7,079 |
|
|
10,695 |
|
| Deferred tax liabilities |
|
23,122 |
|
|
26,048 |
|
| |
|
308,912 |
|
|
322,144 |
|
| Liabilities related to assets
held for sale |
|
28 |
|
|
- |
|
| Total
liabilities |
|
596,542 |
|
|
631,632 |
|
| |
|
|
|
|
| Ordinary shares |
|
27,369 |
|
|
27,323 |
|
| Treasury shares |
|
(5,646 |
) |
|
(2,705 |
) |
| Additional paid-in
capital |
|
601,128 |
|
|
590,191 |
|
| Retained earnings |
|
144,762 |
|
|
117,155 |
|
| Other reserves |
|
22,584 |
|
|
19,624 |
|
| Reserves related to assets
held for sale |
|
439 |
|
|
- |
|
| Equity attributable to
owners of the Company |
|
790,636 |
|
|
751,588 |
|
| Non-controlling interest |
|
5,980 |
|
|
5,841 |
|
| Total
equity |
|
796,616 |
|
|
757,429 |
|
| Total liabilities and
equity |
|
1,393,158 |
|
|
1,389,061 |
|
SPORTRADAR GROUP AGINTERIM CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in
thousands of
Euros)
| |
|
Nine Months Ended September 30, |
|
|
|
|
2023 |
|
2022 |
| OPERATING
ACTIVITIES: |
|
|
|
|
|
|
Profit for the period from continuing operations |
|
|
11,458 |
|
|
43,774 |
|
| Loss for the period from
discontinued operations |
|
|
(451 |
) |
|
- |
|
| Profit for the period |
|
|
11,007 |
|
|
43,774 |
|
| Adjustments to reconcile
profit for the year to net cash provided by operating
activities: |
|
|
|
|
|
| Income tax expense |
|
|
11,524 |
|
|
4,112 |
|
| Interest income |
|
|
(5,573 |
) |
|
(2,712 |
) |
| Interest expense |
|
|
15,861 |
|
|
29,400 |
|
| Impairment losses on financial
assets |
|
|
202 |
|
|
158 |
|
| Remeasurement of previously
held equity-accounted investee |
|
|
- |
|
|
(7,698 |
) |
| Other financial income (loss),
net |
|
|
(2 |
) |
|
43 |
|
| Foreign currency loss (gain),
net |
|
|
3,714 |
|
|
(39,858 |
) |
| Amortization of intangible
assets |
|
|
127,750 |
|
|
124,651 |
|
| Depreciation of property and
equipment |
|
|
10,197 |
|
|
8,681 |
|
| Equity-settled share-based
payments |
|
|
31,107 |
|
|
20,035 |
|
| Share of loss of
equity-accounted investees |
|
|
3,699 |
|
|
1,264 |
|
| Loss on disposal of
equity-accounted investee |
|
|
8,018 |
|
|
- |
|
| Impairment loss on goodwill
and intangible assets |
|
|
9,854 |
|
|
- |
|
| Impairment loss on assets held
for sale |
|
|
5,600 |
|
|
- |
|
| Other |
|
|
(6,963 |
) |
|
1,728 |
|
| Cash flow from
operating activities before working capital changes, interest and
income taxes |
|
|
225,995 |
|
|
183,578 |
|
| Increase in trade receivables,
contract assets, other assets and prepayments |
|
|
(1,212 |
) |
|
(20,144 |
) |
| Increase in trade and other
payables, contract and other liabilities |
|
|
324 |
|
|
13,374 |
|
| Changes in working
capital |
|
|
(888 |
) |
|
(6,770 |
) |
| Interest paid |
|
|
(15,009 |
) |
|
(26,632 |
) |
| Interest received |
|
|
5,566 |
|
|
2,706 |
|
| Income taxes paid, net |
|
|
(9,216 |
) |
|
(4,633 |
) |
| Net cash from
operating activities |
|
|
206,448 |
|
|
148,249 |
|
| INVESTING
ACTIVITIES: |
|
|
|
|
|
| Acquisition of intangible
assets |
|
|
(145,085 |
) |
|
(117,283 |
) |
| Acquisition of property and
equipment |
|
|
(5,638 |
) |
|
(5,806 |
) |
| Acquisition of subsidiaries,
net of cash acquired |
|
|
(12,286 |
) |
|
(55,901 |
) |
| Contribution to
equity-accounted investee |
|
|
- |
|
|
(27,873 |
) |
| Acquisition of financial
asset |
|
|
(3,716 |
) |
|
- |
|
| Proceeds from disposal of
equity-accounted investee |
|
|
15,172 |
|
|
- |
|
| Collection of loans
receivable |
|
|
41 |
|
|
122 |
|
| Issuance of loans
receivable |
|
|
(650 |
) |
|
- |
|
| Collection of deposits |
|
|
257 |
|
|
31 |
|
| Payment of deposits |
|
|
(600 |
) |
|
(160 |
) |
| Net cash used in
investing activities |
|
|
(152,505 |
) |
|
(206,870 |
) |
| FINANCING
ACTIVITIES: |
|
|
|
|
|
| Payment of lease
liabilities |
|
|
(4,933 |
) |
|
(4,425 |
) |
| Acquisition of non-controlling
interests |
|
|
- |
|
|
(28,246 |
) |
| Transaction costs related to
borrowings |
|
|
- |
|
|
(1,100 |
) |
| Principal payments on bank
debt |
|
|
(510 |
) |
|
(200,554 |
) |
| Purchase of treasury
shares |
|
|
(7,101 |
) |
|
(661 |
) |
| Change in bank overdrafts |
|
|
17 |
|
|
98 |
|
| Net cash used in
financing activities |
|
|
(12,527 |
) |
|
(234,888 |
) |
| Net increase
(decrease) increase in cash |
|
|
41,416 |
|
|
(293,509 |
) |
| Cash and cash equivalents as
of January 1 |
|
|
243,757 |
|
|
742,773 |
|
| Effects of movements in
exchange rates |
|
|
4,528 |
|
|
63,228 |
|
| Cash and cash
equivalents as of September 30 |
|
|
289,701 |
|
|
512,492 |
|
The following table reconciles Adjusted EBITDA
to the most directly comparable IFRS financial performance measure,
which is profit for the period from continuing operations:
|
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|
Adjusted EBTIDA reconciliation:in
€'000 |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
| Profit for the period
from continuing operations |
4,615 |
|
12,750 |
|
11,458 |
|
43,774 |
|
| Share based compensation |
11,368 |
|
7,348 |
|
31,430 |
|
20,035 |
|
| Litigation costs1 |
- |
|
2,975 |
|
- |
|
6,146 |
|
| Professional fees for SOX and
ERP implementations |
100 |
|
946 |
|
404 |
|
3,485 |
|
| One-time charitable donation
for Ukrainian relief activities |
- |
|
- |
|
- |
|
147 |
|
| Depreciation and
amortization |
38,184 |
|
31,760 |
|
137,947 |
|
133,332 |
|
| Amortization of sport
rights |
(26,372 |
) |
(20,668 |
) |
(104,482 |
) |
(100,793 |
) |
| Share of loss of
equity-accounted investee2 |
- |
|
1,167 |
|
3,699 |
|
1,167 |
|
| Loss on disposal of
equity-accounted investee |
- |
|
- |
|
8,018 |
|
- |
|
| Impairment loss on goodwill
and intangible assets |
9,854 |
|
- |
|
9,854 |
|
- |
|
| Impairment loss on assets held
for sale |
5,600 |
|
- |
|
5,600 |
|
- |
|
| Impairment loss (gain) on
other financial assets |
- |
|
(18 |
) |
202 |
|
158 |
|
| Remeasurement of previously
held equity-accounted investee |
- |
|
- |
|
- |
|
(7,698 |
) |
| Foreign currency (gains) loss,
net |
(1,187 |
) |
(11,003 |
) |
3,714 |
|
(39,858 |
) |
| Finance income |
(3,179 |
) |
(1,991 |
) |
(9,781 |
) |
(2,715 |
) |
| Finance costs |
5,554 |
|
11,312 |
|
17,672 |
|
29,446 |
|
| Income tax expense |
5,949 |
|
1,906 |
|
11,524 |
|
4,112 |
|
| Adjusted
EBITDA |
50,486 |
|
36,484 |
|
127,259 |
|
90,738 |
|
(1) Includes legal related costs in connection with a
non-routine litigation.(2) Related to equity-accounted investee
SportTech AG.
The most directly comparable IFRS measure of
Adjusted EBITDA margin is profit for the period from continuing
operations as a percentage of revenue as disclosed below:
| |
|
Three Months EndedSeptember
30, |
Nine Months EndedSeptember
30, |
|
in €'000 |
|
2023 |
2022 |
2023 |
2022 |
| Profit for the
period from continuing operations |
4,615 |
|
12,750 |
|
11,458 |
|
43,774 |
|
| Revenue |
201,037 |
|
178,835 |
|
625,035 |
|
523,900 |
|
| Profit for
the period from continuing operations as a percentage of
revenue |
2 |
% |
7 |
% |
2 |
% |
8 |
% |
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