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,
2024.
Carsten Koerl, Chief Executive Officer of
Sportradar, said: "Our competitive advantages within the sports
ecosystem, coupled with our growth-oriented strategy, is driving
broad-based outperformance. We continue to deliver more value to
our clients and partners, building shareholder value. We are at an
important inflection point to drive operational leverage and cash
generation, demonstrated by our expanding EBITDA margin and strong
cash flow this past quarter. The significant cash flow has further
strengthened our balance sheet and we are deploying our capital to
execute on our growth strategy while returning capital to
shareholders. Additionally, we continue to show strong momentum in
the US, which we expect to be further bolstered by the growth of
in-game betting and with the start of the NBA and NHL seasons.”
THIRD QUARTER AND YEAR TO DATE
FINANCIAL RESULTS
Revenue
| |
|
Three-Month Period EndedSeptember
30, |
|
Nine-Month Period EndedSeptember
30, |
| in €
thousands (unaudited) |
|
2024 |
|
2023 |
|
Change |
|
% |
|
2024 |
|
2023 |
|
Change |
|
% |
|
Revenue by product |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Betting & Gaming Content |
|
162,769 |
|
118,994 |
|
43,775 |
|
37 |
% |
|
515,337 |
|
382,352 |
|
132,985 |
|
35 |
% |
|
Managed Betting Services |
|
47,295 |
|
40,190 |
|
7,105 |
|
18 |
% |
|
144,726 |
|
117,521 |
|
27,205 |
|
23 |
% |
| Betting Technology
& Solutions |
|
210,064 |
|
159,184 |
|
50,880 |
|
32 |
% |
|
660,063 |
|
499,873 |
|
160,190 |
|
32 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing & Media Services |
|
32,944 |
|
30,080 |
|
2,864 |
|
10 |
% |
|
102,637 |
|
90,185 |
|
12,452 |
|
14 |
% |
|
Sports Performance |
|
10,116 |
|
9,949 |
|
167 |
|
2 |
% |
|
29,314 |
|
29,150 |
|
164 |
|
1 |
% |
|
Integrity Services |
|
2,048 |
|
1,824 |
|
224 |
|
12 |
% |
|
7,472 |
|
5,827 |
|
1,645 |
|
28 |
% |
| Sports Content,
Technology & Services |
|
45,108 |
|
41,853 |
|
3,255 |
|
8 |
% |
|
139,423 |
|
125,162 |
|
14,261 |
|
11 |
% |
| Total
Revenue |
|
255,172 |
|
201,037 |
|
54,135 |
|
27 |
% |
|
799,486 |
|
625,035 |
|
174,451 |
|
28 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue by
geography |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rest of World |
|
204,076 |
|
165,960 |
|
38,116 |
|
23 |
% |
|
622,340 |
|
512,263 |
|
110,077 |
|
21 |
% |
|
United States |
|
51,096 |
|
35,077 |
|
16,019 |
|
46 |
% |
|
177,146 |
|
112,772 |
|
64,374 |
|
57 |
% |
| Total
Revenue |
|
255,172 |
|
201,037 |
|
|
|
|
|
799,486 |
|
625,035 |
|
|
|
|
| |
Total revenue for the third quarter was €255
million, up €54 million, or 27% year-over-year driven by 32% growth
in Betting Technology & Solutions and 8% growth in Sports
Content, Technology & Services.
Betting Technology & Solutions revenues of
€210 million were up 32% year-over-year primarily driven by a 37%
increase in Betting & Gaming Content benefiting from existing
and new customer uptake of our products and premium pricing, as
well as from the strong U.S. market growth. Additionally, Managed
Betting Services grew 18% year-over-year, primarily driven by
strong growth in Managed Trading Services from higher trading
margins and increased betting activity from existing and new
customers.
Sports Content, Technology & Services
revenues of €45 million, increased 8% year-over-year primarily
driven by 10% growth in Marketing & Media Services with strong
growth in both European and North America ad:s revenue as several
sportsbooks launched marketing campaigns.
The Company generated strong revenue growth
globally with Rest of World up 23% and the United States up 46%. As
a percentage of total Company revenues, United States revenue
represented 20% of total Company revenue in the third quarter as
compared to 17% in the prior year quarter due to market growth,
additional customer uptake of our products and premium pricing.
Customer Net Retention Rate of 126% increased
sequentially and from the prior year quarter demonstrating the
strength in cross selling and upselling to clients most notably due
to the new ATP rights deal and market growth in the United
States.
Profit for the period from continuing
operations
Profit for the period from continuing operations
in the third quarter was €37 million, up €32 million, compared to
€5 million in the same quarter a year ago. The increase was
primarily driven by the strong operating results as well as €21
million in net foreign currency gains due to strengthening of the
Euro against the U.S. dollar and €15 million of prior year one-time
losses related to impairment on goodwill and intangible assets
related to the impact of changes related to our business strategy
and disposal of an equity-accounted investee. These increases were
partially offset by higher financing costs of €14 million driven by
the new ATP, NBA, and Bundesliga partnership deals.
Adjusted EBITDA
Third quarter Adjusted EBITDA was €66 million,
up €15 million, compared to €50 million in the same quarter a year
ago. The increase was primarily driven by the 27% revenue growth,
partially offset by increased sport rights costs primarily related
to the ATP partnership deal, higher purchased services driven by
investments in developing our product portfolio, increased
personnel expenses due to headcount growth and a higher bonus
accrual in the current year.
Additional Business Highlights
- In conjunction with our partnership
with the NBA, Sportradar has launched a suite of next generation
products and solutions for the 2024 - 2025 season. Leveraging
products such as 4Sight Streaming, emBET, Live Match Tracker and
advanced visualizations, Sportradar can harness hundreds of
thousands of data points per game to redefine the standards of fan
engagement.
- Sportradar introduced micro markets
for ATP tennis matches in collaboration with Tennis Data
Innovations, expanding this cutting-edge product to tennis from
other popular sports such as soccer and table tennis. The eight
distinct micro markets are expected to generate approximately 1,500
new betting opportunities per match, opening fresh revenue streams
for operators.
- Sportradar added paid search to its
ad:s marketing service, allowing operators to more effectively
reach and acquire customers searching betting and gaming-related
topics online.
- Sportradar received several
industry awards, including the Best Live Betting Product at SBC
Summit 2024. In addition, Sportradar was recognized in two
prestigious categories at the 2024 American Gambling Awards,
winning Betting Product of the Year for its 4Sight technology and
the Data Service Provider of the Year.
Balance Sheet and Liquidity
The Company’s cash and cash equivalents were
€368 million as of September 30, 2024 as compared with €277
million as of December 31, 2023. The increase was primarily
driven by net cash generated from operating activities of €271
million due to the strong operating performance, partially offset
by net cash used in investing activities of €152 million, primarily
from the acquisition of additional sports rights, most notably our
new NBA and ATP deals, and from net cash used in financing
activities of €26 million, due primarily to share repurchases. Free
cash flow for the nine-months ended September 30, 2024 was
€122 million, an increase of €71 million from the €51 million in
the same period a year ago.
Including the undrawn credit facility, the
Company had total liquidity of €588 million at September 30,
2024 as compared to €510 million as of September 30, 2023, and
no debt outstanding.
2024 Annual Financial
Outlook
Sportradar is further raising its fiscal 2024
outlook for revenue and Adjusted EBITDA as follows:
- Revenue of at least €1,090 million,
up 24% year-over-year, compared with prior outlook of €1,070
million.
- Adjusted EBITDA of at least €216
million, up 29% year-over-year, compared with prior outlook of €204
million.
- Adjusted EBITDA margin of
approximately 20%.
Share Repurchase Program
In March of this year the Board of Directors
approved a $200 million share repurchase program and commenced
purchases during the second quarter. During the current quarter,
the Company repurchased approximately 721,000 shares for a total of
$8.3 million. Year to date through November 1, 2024, the Company
has repurchased 1.7 million shares under the plan for a total of
approximately $20 million.
Conference Call and Webcast Information
Sportradar will host a conference call to
discuss the third quarter 2024 results today, November 7,
2024, 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 ATP, 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
_______________________________________________________________________
1 Non-IFRS measure. See the sections
captioned “Non-IFRS Financial Measures and Operating Metric” and
“IFRS to Non-IFRS reconciliations” for more details.
CONTACT:
Investor Relations:Jim
Bombasseij.bombassei@sportradar.com
Media:Sandra Leepress@sportradar.com
Non-IFRS Financial Measures and Operating
Metric
We have provided in this press release financial
information that has not been prepared in accordance with IFRS,
including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted
purchased services, Adjusted personnel expenses, Adjusted other
operating expenses, and Free cash flow, as well as our operating
metric, Customer 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 earnings for the period from continuing operations
adjusted for finance income and finance costs, income tax expense
or benefit, depreciation and amortization (excluding amortization
of capitalized sport rights licenses), foreign currency gains or
losses, and other items that are non-recurring or not related to
the Company’s revenue-generating operations, including share-based
compensation, impairment charges or income, management
restructuring costs, non-routine litigation costs, losses related
to equity-accounted investee (SportTech AG), and professional fees
for the Sarbanes-Oxley Act of 2002 and enterprise resource planning
implementations.License fees relating to sport rights are a key
component of how we generate revenue and one of our main operating
expenses. 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. As such, our presentation of Adjusted EBITDA reflects the
full costs of our sport right's licenses. Management believes that,
by including amortization of sport 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 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.The Company is
unable to provide a reconciliation of Adjusted EBITDA guidance 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.
We present Adjusted purchased services, Adjusted personnel
expenses, and Adjusted other operating expenses ("Non-IFRS
expenses") because management utilizes these financial measures to
manage its business on a day-to-day basis and believes that they
are the most relevant measures of expenses. Management believes
these adjusted expense measures provide expanded insight to assess
revenue and cost performance, in addition to the standard
IFRS-based financial measures. Management believes these adjusted
expense measures are useful to investors for evaluating
Sportradar’s operating performance against competitors. However,
Sportradar’s calculation of adjusted expense measures may not be
comparable to other similarly titled performance measures of other
companies. These adjusted expense measures are not intended to be a
substitute for any IFRS financial measure.
- “Adjusted purchased services”
represents purchased services less capitalized external development
costs.
- “Adjusted personnel expenses”
represents personnel expenses less share-based compensation awarded
to employees, management restructuring costs, and capitalized
personnel compensation.
- “Adjusted other operating expenses”
represents other operating expenses plus impairment loss on trade
receivables, less non-routine litigation, share-based compensation
awarded to third parties, and certain professional fees.
We consider Free cash flow to be a liquidity measure that
provides useful information to management and investors about the
amount of cash generated by the business after the purchase of
property and equipment, the purchase of intangible assets and
payment of lease liabilities, which can then be used, among other
things, to invest in our business and make strategic acquisitions.
A limitation of the utility of Free cash flow as a measure of
liquidity is that it does not represent the total increase or
decrease in our cash balance for the year.
- “Free cash flow”
represents net cash from operating activities adjusted for payments
for lease liabilities, acquisition of property and equipment, and
acquisition of intangible assets.
In addition, we define the following operating metric as
follows:
- “Customer Net
Retention Rate” is calculated for a given period by starting with
the reported Trailing Twelve Month 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.
Safe Harbor for Forward-Looking Statements
Certain 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 our guidance
and outlook, including expected performance for the full year 2024.
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;
pandemics, such as the global COVID-19 pandemic, could have an
adverse effect 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, 2023, 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 AGCONSOLIDATED
STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME(Unaudited)
| |
|
Three-Month Period Ended |
|
Nine-Month Period Ended |
| |
|
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
| in
€'000 and in thousands of shares |
|
|
|
(restated) |
|
|
|
(restated) |
|
Continuing operations |
|
|
|
|
|
|
|
|
|
Revenue |
|
255,172 |
|
|
201,037 |
|
|
799,486 |
|
|
625,035 |
|
|
Personnel expenses |
|
(87,966 |
) |
|
(75,359 |
) |
|
(256,668 |
) |
|
(237,223 |
) |
|
Sport rights expenses (including amortization of capitalized sport
rights licenses) |
|
(63,002 |
) |
|
(35,544 |
) |
|
(249,861 |
) |
|
(139,077 |
) |
|
Purchased services |
|
(42,770 |
) |
|
(36,088 |
) |
|
(125,565 |
) |
|
(103,650 |
) |
|
Other operating expenses |
|
(23,391 |
) |
|
(22,817 |
) |
|
(67,388 |
) |
|
(65,000 |
) |
|
Impairment gain (loss) on trade receivables, contract assets and
other financial assets |
|
397 |
|
|
(626 |
) |
|
(3,473 |
) |
|
(4,527 |
) |
|
Internally-developed software cost capitalized |
|
13,269 |
|
|
8,415 |
|
|
36,186 |
|
|
19,665 |
|
|
Depreciation and amortization (excluding amortization of
capitalized sport rights licenses) |
|
(12,970 |
) |
|
(11,812 |
) |
|
(37,600 |
) |
|
(33,465 |
) |
|
Share of loss of equity-accounted investee |
|
— |
|
|
— |
|
|
— |
|
|
(3,699 |
) |
|
Loss on disposal of equity-accounted investee |
|
— |
|
|
(5,600 |
) |
|
— |
|
|
(13,618 |
) |
|
Impairment loss on goodwill and intangible assets |
|
— |
|
|
(9,854 |
) |
|
— |
|
|
(9,854 |
) |
|
Foreign currency gain (loss), net |
|
22,380 |
|
|
1,187 |
|
|
88 |
|
|
(3,714 |
) |
|
Finance income |
|
2,738 |
|
|
3,179 |
|
|
6,687 |
|
|
9,781 |
|
|
Finance costs |
|
(19,969 |
) |
|
(5,554 |
) |
|
(57,986 |
) |
|
(17,672 |
) |
| Net income before tax
from continuing operations |
|
43,888 |
|
|
10,564 |
|
|
43,906 |
|
|
22,982 |
|
|
Income tax expense |
|
(6,786 |
) |
|
(5,949 |
) |
|
(8,988 |
) |
|
(11,524 |
) |
| Profit for the period
from continuing operations |
|
37,102 |
|
|
4,615 |
|
|
34,918 |
|
|
11,458 |
|
| Discontinued
operations |
|
|
|
|
|
|
|
|
|
Loss from discontinued operations |
|
— |
|
|
(495 |
) |
|
— |
|
|
(451 |
) |
| Profit for the
period |
|
37,102 |
|
|
4,120 |
|
|
34,918 |
|
|
11,007 |
|
| |
|
|
|
|
|
|
|
|
| Other comprehensive
income |
|
|
|
|
|
|
|
|
| Items that will not be
reclassified subsequently to profit or (loss) |
|
|
|
|
|
|
|
|
|
Remeasurement of defined benefit liability |
|
— |
|
|
1 |
|
|
(2 |
) |
|
(88 |
) |
|
Related deferred tax expense (benefit) |
|
— |
|
|
— |
|
|
(2 |
) |
|
11 |
|
| |
|
— |
|
|
1 |
|
|
(4 |
) |
|
(77 |
) |
| Items that may be
reclassified subsequently to profit or (loss) |
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment attributable to the owners
of the company |
|
(4,163 |
) |
|
3,420 |
|
|
2,321 |
|
|
3,062 |
|
|
Foreign currency translation adjustment attributable to
non-controlling interests |
|
(3 |
) |
|
(25 |
) |
|
(5 |
) |
|
(17 |
) |
| |
|
(4,166 |
) |
|
3,395 |
|
|
2,316 |
|
|
3,045 |
|
| Other comprehensive
(loss) income for the period, net of tax |
|
(4,166 |
) |
|
3,396 |
|
|
2,312 |
|
|
2,968 |
|
| Total comprehensive
income for the period |
|
32,936 |
|
|
7,516 |
|
|
37,230 |
|
|
13,975 |
|
| |
|
|
|
|
|
|
|
|
| Profit (loss)
attributable to: |
|
|
|
|
|
|
|
|
|
Owners of the Company |
|
37,261 |
|
|
4,335 |
|
|
35,239 |
|
|
11,246 |
|
|
Non-controlling interests |
|
(159 |
) |
|
(215 |
) |
|
(321 |
) |
|
(239 |
) |
| |
|
37,102 |
|
|
4,120 |
|
|
34,918 |
|
|
11,007 |
|
| Total comprehensive
income (loss) attributable to: |
|
|
|
|
|
|
|
|
|
Owners of the Company |
|
33,098 |
|
|
7,756 |
|
|
37,556 |
|
|
14,230 |
|
|
Non-controlling interests |
|
(162 |
) |
|
(240 |
) |
|
(326 |
) |
|
(255 |
) |
| |
|
32,936 |
|
|
7,516 |
|
|
37,230 |
|
|
13,975 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Profit per Class A
share attributable to owners of the Company |
|
|
|
|
|
|
|
|
|
Basic |
|
0.12 |
|
|
0.02 |
|
|
0.12 |
|
|
0.04 |
|
|
Diluted |
|
0.11 |
|
|
0.01 |
|
|
0.11 |
|
|
0.04 |
|
| Profit per Class B
share attributable to owners of the Company |
|
|
|
|
|
|
|
|
|
Basic |
|
0.01 |
|
|
0.00 |
|
|
0.01 |
|
|
0.00 |
|
|
Diluted |
|
0.01 |
|
|
0.00 |
|
|
0.01 |
|
|
0.00 |
|
| |
|
|
|
|
|
|
|
|
| Weighted-average
number of shares |
|
|
|
|
|
|
|
|
|
Weighted-average number of Class A shares (basic) |
|
210,467 |
|
|
207,600 |
|
|
210,202 |
|
|
207,283 |
|
|
Weighted-average number of Class A shares (diluted) |
|
227,805 |
|
|
220,834 |
|
|
226,284 |
|
|
219,676 |
|
|
Weighted-average number of Class B shares (basic and diluted) |
|
903,671 |
|
|
903,671 |
|
|
903,671 |
|
|
903,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPORTRADAR GROUP AGCONSOLIDATED
STATEMENTS OF FINANCIAL POSITION(Unaudited)
| in
€'000 |
|
September 30,2024 |
|
December 31,2023 |
|
Assets |
|
|
|
|
| Current
assets |
|
|
|
|
|
Cash and cash equivalents |
|
368,379 |
|
|
277,174 |
|
|
Trade receivables |
|
66,240 |
|
|
71,246 |
|
|
Contract assets |
|
94,950 |
|
|
60,869 |
|
|
Other assets and prepayments |
|
27,189 |
|
|
33,252 |
|
|
Income tax receivables |
|
6,470 |
|
|
6,527 |
|
| Total current
assets |
|
563,228 |
|
|
449,068 |
|
| Non-current
assets |
|
|
|
|
|
Property and equipment |
|
66,273 |
|
|
72,762 |
|
|
Intangible assets and goodwill |
|
1,618,722 |
|
|
1,697,331 |
|
|
Other financial assets and other non-current assets |
|
11,491 |
|
|
11,806 |
|
|
Deferred tax assets |
|
17,566 |
|
|
16,383 |
|
| Total non-current
assets |
|
1,714,052 |
|
|
1,798,282 |
|
| Total
assets |
|
2,277,280 |
|
|
2,247,350 |
|
| Liabilities and
equity |
|
|
|
|
| Current
liabilities |
|
|
|
|
|
Loans and borrowings |
|
10,050 |
|
|
9,586 |
|
|
Trade payables |
|
246,887 |
|
|
259,667 |
|
|
Other liabilities |
|
60,703 |
|
|
55,724 |
|
|
Contract liabilities |
|
42,594 |
|
|
26,595 |
|
|
Income tax liabilities |
|
8,978 |
|
|
4,542 |
|
| Total current
liabilities |
|
369,212 |
|
|
356,114 |
|
| Non-current
liabilities |
|
|
|
|
|
Loans and borrowings |
|
37,174 |
|
|
40,559 |
|
|
Trade payables |
|
892,966 |
|
|
908,499 |
|
|
Contract liabilities |
|
41,196 |
|
|
39,526 |
|
|
Other non-current liabilities |
|
1,419 |
|
|
8,500 |
|
|
Deferred tax liabilities |
|
19,081 |
|
|
21,315 |
|
| Total non-current
liabilities |
|
991,836 |
|
|
1,018,399 |
|
| Total
liabilities |
|
1,361,048 |
|
|
1,374,513 |
|
| Equity |
|
|
|
|
|
Ordinary shares |
|
27,551 |
|
|
27,421 |
|
|
Treasury shares |
|
(18,144 |
) |
|
(2,322 |
) |
|
Additional paid-in capital |
|
669,795 |
|
|
653,840 |
|
|
Retained earnings |
|
214,771 |
|
|
173,629 |
|
|
Other reserves |
|
17,542 |
|
|
15,226 |
|
| Equity attributable to
owners of the Company |
|
911,515 |
|
|
867,794 |
|
|
Non-controlling interest |
|
4,717 |
|
|
5,043 |
|
| Total
equity |
|
916,232 |
|
|
872,837 |
|
| Total liabilities and
equity |
|
2,277,280 |
|
|
2,247,350 |
|
| |
|
|
|
|
|
|
SPORTRADAR GROUP AGCONSOLIDATED
STATEMENTS OF CASH FLOWS(Unaudited)
| |
|
Nine-Month Period Ended |
| |
|
September 30, 2024 |
|
September 30, 2023 |
| in
€'000 |
|
|
|
(restated) |
|
OPERATING ACTIVITIES: |
|
|
|
|
|
Profit for the period |
|
34,918 |
|
|
11,007 |
|
| Adjustments to reconcile
profit for the period to net cash provided by operating
activities: |
|
|
|
|
|
Income tax expense |
|
8,988 |
|
|
11,524 |
|
|
Interest income |
|
(6,818 |
) |
|
(5,573 |
) |
|
Interest expense |
|
58,081 |
|
|
15,861 |
|
|
Foreign currency (gain) loss, net |
|
(88 |
) |
|
3,714 |
|
|
Depreciation and amortization (excluding amortization of
capitalized sport rights licenses) |
|
37,600 |
|
|
33,465 |
|
|
Amortization of capitalized sport rights licenses |
|
166,603 |
|
|
97,330 |
|
|
Impairment losses on goodwill and intangible assets |
|
— |
|
|
9,854 |
|
|
Equity-settled share-based payments |
|
26,052 |
|
|
31,107 |
|
|
Share of loss of equity-accounted investee |
|
— |
|
|
3,699 |
|
|
Loss on disposal of equity-accounted investee |
|
— |
|
|
13,618 |
|
|
Other |
|
(8,048 |
) |
|
389 |
|
| Cash flow from
operating activities before working capital changes, interest and
income taxes |
|
317,288 |
|
|
225,995 |
|
|
Increase in trade receivables, contract assets, other assets and
prepayments |
|
(24,555 |
) |
|
(1,212 |
) |
|
Increase in trade and other payables, contract and other
liabilities |
|
36,095 |
|
|
324 |
|
| Changes in working
capital |
|
11,540 |
|
|
(888 |
) |
|
Interest paid |
|
(57,287 |
) |
|
(15,009 |
) |
|
Interest received |
|
6,823 |
|
|
5,566 |
|
|
Income taxes paid, net |
|
(7,510 |
) |
|
(9,216 |
) |
| Net cash from
operating activities |
|
270,854 |
|
|
206,448 |
|
| INVESTING
ACTIVITIES: |
|
|
|
|
|
Acquisition of intangible assets |
|
(140,165 |
) |
|
(145,085 |
) |
|
Acquisition of property and equipment |
|
(3,090 |
) |
|
(5,638 |
) |
|
Acquisition of subsidiaries, net of cash acquired |
|
(8,240 |
) |
|
(12,286 |
) |
|
Acquisition of financial assets |
|
— |
|
|
(3,716 |
) |
|
Proceeds from disposal of equity-accounted investee |
|
— |
|
|
15,172 |
|
|
Change in loans receivable and deposits |
|
(187 |
) |
|
(952 |
) |
| Net cash used in
investing activities |
|
(151,682 |
) |
|
(152,505 |
) |
| FINANCING
ACTIVITIES: |
|
|
|
|
|
Payment of lease liabilities |
|
(5,898 |
) |
|
(4,933 |
) |
|
Purchase of treasury shares |
|
(19,795 |
) |
|
(7,101 |
) |
|
Principal payments on bank debt |
|
(150 |
) |
|
(510 |
) |
|
Change in bank overdrafts |
|
(47 |
) |
|
17 |
|
| Net cash used in
financing activities |
|
(25,890 |
) |
|
(12,527 |
) |
| Net increase in
cash |
|
93,282 |
|
|
41,416 |
|
| Cash and cash equivalents at
beginning of period |
|
277,174 |
|
|
243,757 |
|
|
Effects of movements in exchange rates |
|
(2,077 |
) |
|
4,528 |
|
| Cash and cash
equivalents at end of period |
|
368,379 |
|
|
289,701 |
|
| |
|
|
|
|
|
|
Change in presentation related to sport rights
expenses
During the third quarter, the Company has
changed the presentation of expenses related to sport rights in its
Statement of profit or loss and other comprehensive income.
Previously, these expenses were split between 'Purchased services
and licenses (excluding depreciation and amortization)',
representing the portion of related sport rights expenses which
were not eligible for capitalization and 'Depreciation and
amortization', representing the portion of related sport rights
expenses which were capitalized. However, starting this quarter,
the expenses are combined and presented under a new line item
titled 'Sport rights expenses (including amortization of
capitalized licenses)'.
The change in presentation intends to provide
more relevant and reliable information to the users of our
financial statements. This reclassification aligns the presentation
of sport rights expenses with the nature of the costs and the way
they are managed internally.
There is no change to the Company’s disclosures,
measurement or recognition of non-capitalized costs and capitalized
sport rights licenses in accordance with IAS 38 Intangible Assets
reported in its Annual Report on Form 20-F for the year ended
December 31, 2023.
The following table shows the reclassification
of sport rights expenses (unaudited):
|
|
|
|
|
|
|
|
|
Three-Month Period EndedSeptember 30,
2023 |
|
Nine-Month Period EndedSeptember 30,
2023 |
| in
€'000 |
|
Previously reported |
|
Reclassification1 |
|
Restated |
|
Previously reported |
|
Reclassification1 |
|
Restated |
|
Purchased services and licenses (excluding depreciation and
amortization) |
|
(45,260 |
) |
|
9,172 |
|
(36,088 |
) |
|
(138,245 |
) |
|
34,595 |
|
(103,650 |
) |
| Depreciation and
amortization |
|
(38,184 |
) |
|
26,372 |
|
(11,812 |
) |
|
(137,947 |
) |
|
104,482 |
|
(33,465 |
) |
| Total sport rights
expenses |
|
|
|
35,544 |
|
|
|
|
|
139,077 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
1 Approximately €1.2 million and €7.2 million of
sport rights expenses has been reclassified from amortization to
purchased services and licenses for the three-month and nine-month
periods ended September 30, 2023 as previously reported in the
Company’s Form 6-K dated November 1, 2023.
Additional disclosures related to sport rights
expenses
The following table shows the composition of sport rights
expenses (unaudited):
|
|
|
|
|
|
|
|
|
Three-Month Period Ended |
|
Nine-Month Period Ended |
|
in €'000 |
|
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
|
Non-capitalized sport right expenses |
|
28,272 |
|
10,354 |
|
83,258 |
|
41,747 |
| Amortization of capitalized
sport rights |
|
34,730 |
|
25,190 |
|
166,603 |
|
97,330 |
| Total sport rights
expenses |
|
63,002 |
|
35,544 |
|
249,861 |
|
139,077 |
| |
|
|
|
|
|
|
|
|
IFRS to Non-IFRS
Reconciliations
The following table reconciles Adjusted EBITDA
to the most directly comparable IFRS financial performance measure,
which is Profit for the period from continuing operations
(unaudited):
|
|
|
|
|
|
|
|
|
Three-Month Period Ended |
|
Nine-Month Period Ended |
| in
€'000 |
|
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
|
Profit for the period from continuing
operations |
|
37,102 |
|
|
4,615 |
|
|
34,918 |
|
|
11,458 |
|
|
Finance income |
|
(2,738 |
) |
|
(3,179 |
) |
|
(6,687 |
) |
|
(9,781 |
) |
|
Finance costs |
|
19,969 |
|
|
5,554 |
|
|
57,986 |
|
|
17,672 |
|
|
Depreciation and amortization (excluding amortization of
capitalized sport rights licenses) |
|
12,970 |
|
|
11,812 |
|
|
37,600 |
|
|
33,465 |
|
|
Foreign currency (gain) loss, net |
|
(22,380 |
) |
|
(1,187 |
) |
|
(88 |
) |
|
3,714 |
|
|
Share-based compensation |
|
12,088 |
|
|
11,368 |
|
|
25,095 |
|
|
31,430 |
|
|
Management restructuring costs |
|
— |
|
|
— |
|
|
1,620 |
|
|
— |
|
|
Non-routine litigation costs |
|
1,989 |
|
|
— |
|
|
2,391 |
|
|
— |
|
|
Share of loss of equity-accounted investee |
|
— |
|
|
— |
|
|
— |
|
|
3,699 |
|
|
Loss on disposal of equity-accounted investee |
|
— |
|
|
5,600 |
|
|
— |
|
|
13,618 |
|
|
Impairment loss on goodwill and intangible assets |
|
— |
|
|
9,854 |
|
|
— |
|
|
9,854 |
|
|
Impairment loss on other financial assets |
|
— |
|
|
— |
|
|
— |
|
|
202 |
|
|
Professional fees for SOX and ERP implementations |
|
— |
|
|
100 |
|
|
— |
|
|
404 |
|
|
Income tax expense |
|
6,786 |
|
|
5,949 |
|
|
8,988 |
|
|
11,524 |
|
| Adjusted
EBITDA |
|
65,786 |
|
|
50,486 |
|
|
161,823 |
|
|
127,259 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
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
(unaudited):
|
|
|
|
|
|
|
|
|
Three-Month Period Ended |
|
Nine-Month Period Ended |
| in
€'000 |
|
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
|
Profit for the period from continuing operations |
|
37,102 |
|
|
4,615 |
|
|
34,918 |
|
|
11,458 |
|
| Revenue |
|
255,172 |
|
|
201,037 |
|
|
799,486 |
|
|
625,035 |
|
| Profit for the period
from continuing operations as a percentage of revenue |
|
14.5 |
% |
|
2.3 |
% |
|
4.4 |
% |
|
1.8 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
The most directly comparable IFRS measure of
Free cash flow is Net cash from operating activities as disclosed
below (unaudited):
|
|
|
|
|
|
|
|
|
Three-Month Period Ended |
|
Nine-Month Period Ended |
| in
€'000 |
|
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
|
Net cash from operating activities |
|
118,222 |
|
|
76,248 |
|
|
270,854 |
|
|
206,448 |
|
|
Acquisition of intangible assets |
|
(53,552 |
) |
|
(50,878 |
) |
|
(140,165 |
) |
|
(145,085 |
) |
|
Acquisition of property plant and equipment |
|
(717 |
) |
|
(2,392 |
) |
|
(3,090 |
) |
|
(5,638 |
) |
|
Payment of lease liabilities |
|
(1,741 |
) |
|
(1,650 |
) |
|
(5,898 |
) |
|
(4,933 |
) |
| Free cash
flow |
|
62,212 |
|
|
21,328 |
|
|
121,701 |
|
|
50,792 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
The following tables show reconciliations of IFRS expenses
included in profit for the period from continuing operations to
expenses included in Adjusted EBITDA (unaudited):
|
|
|
|
|
|
|
|
|
Three-Month Period Ended |
|
Nine-Month Period Ended |
| in
€'000 |
|
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
|
Purchased services |
|
42,770 |
|
|
36,088 |
|
|
125,565 |
|
|
103,650 |
|
|
Less: capitalized external services |
|
(6,490 |
) |
|
(1,669 |
) |
|
(15,758 |
) |
|
(4,242 |
) |
| Adjusted purchased
services |
|
36,280 |
|
|
34,419 |
|
|
109,807 |
|
|
99,408 |
|
| |
|
|
|
|
|
|
|
|
| Personnel expenses |
|
87,966 |
|
|
75,359 |
|
|
256,668 |
|
|
237,223 |
|
|
Less: share-based compensation |
|
(12,767 |
) |
|
(11,107 |
) |
|
(27,076 |
) |
|
(30,661 |
) |
|
Less: management restructuring |
|
— |
|
|
— |
|
|
(1,620 |
) |
|
— |
|
|
Less: capitalized personnel compensation |
|
(5,865 |
) |
|
(6,746 |
) |
|
(17,741 |
) |
|
(15,423 |
) |
| Adjusted personnel
expenses |
|
69,334 |
|
|
57,506 |
|
|
210,231 |
|
|
191,139 |
|
| |
|
|
|
|
|
|
|
|
| Other operating expenses |
|
23,391 |
|
|
22,817 |
|
|
67,388 |
|
|
65,000 |
|
|
Less: non-routine litigation |
|
(1,989 |
) |
|
— |
|
|
(2,391 |
) |
|
— |
|
|
Less: share-based compensation |
|
(237 |
) |
|
(261 |
) |
|
(706 |
) |
|
(769 |
) |
|
Less: other |
|
— |
|
|
(100 |
) |
|
— |
|
|
(606 |
) |
|
Add: impairment (gain) loss on trade receivables |
|
(397 |
) |
|
626 |
|
|
3,473 |
|
|
4,527 |
|
| Adjusted other
operating expenses |
|
20,768 |
|
|
23,082 |
|
|
67,764 |
|
|
68,152 |
|
Sportrader (NASDAQ:SRAD)
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From Oct 2024 to Nov 2024
Sportrader (NASDAQ:SRAD)
Historical Stock Chart
From Nov 2023 to Nov 2024
