Sportradar has earmarked its US revenue growth as a highlight of Q1 trading, despite growing operational expenses taking a hit on the group’s bottom line.
Publishing its Q1 financial report, the Swiss-listed sports tech firm posted group revenues of $186.4m, up 31% on corresponding 2021 results of $135.3m.
This growth was driven by US topline growth, with turnover for the division increasing 124% YoY to $28.5m. Sportradar attributed US growth to elevated sales related to betting services following the legalization of sports betting in more states.
Further US success was found through growth from increased sales to media companies and a positive impact from the acquisition of Synergy Sports.
Despite growth in US revenues, the division has not yet listed a profit, registering an operating loss of $9.4m – reduced from a $37.9m loss in Q1 of 2021 – attributed to increased investment in Sportradar’s league and team solutions required to accelerate market growth.
“Our fiscal 2022 is off to a fast start, with core, high-margin betting products driving growth around the world,” commented Carsten Koerl, Founder and Group CEO of Sportradar AG.
“Our US business continues its tremendous growth story as more states legalize and sports betting becomes live, mainstream entertainment.
“As the market leader, our technology and data-driven insights continue to transform the converging media, entertainment and sports industries and fuel our consistent and long-term profitable growth story.”
Elsewhere, Managed Betting Services (MBS), a division of Sportradar Betting Services, increased its income by 51% to $27.9m due to increasing demand for its live-odds services and value-added market provisions by sportsbook clients.
Meanwhile, further demand for NHL and Tennis Australia content saw the firm’s Audiovisual division record a 17% increase in income to $48.4m.
Whilst demand for its products has increased across the board, Sportradar has taken a hit of 5% YoY on its adjusted EBITDA, standing at $29.6m. This was attributed to higher costs related to being a publicly listed company.
Another significant expense was the company’s increasing personal costs of $54.7m for new technical staff across all departments, as ‘employee headcount increased by 620 to 3,075 full-time employees at the end of the first quarter of 2022’.
The sports tech firm’s guidance for the full fiscal year remains unchanged, with it expecting to garner revenue in the range of €665-to-€700m ($699.8-$736.6m), with expected adjusted EBITDA set to be in the range of €123-to-€133m ($129.4-$139.9m).