Description

Revenue for the full year of 2021 increased 39% to €561.2 million ($634.2 million)¹ compared with the prior year, driven by strong growth across all business segments. Full year revenue exceeded the top end of the Company’s 2021 annual outlook range of €553 - €555 million.

Adjusted EBITDA² for the full year of 2021 increased 33% to €102.0 million ($115.3 million)¹ compared with the prior year. Full year Adjusted EBITDA exceeded the top end of the Company’s 2021 annual outlook range of €99.5 - €101.5 million.

Adjusted EBITDA² for 2021 excluding Sportradar’s September 2021 Initial Public Offering (IPO) costs was €113.7 million ($128.5 million)¹.

Adjusted EBITDA margin² for 2021 was 18% compared with 19% for 2020. Excluding IPO costs, Adjusted EBITDA margin was 20% for 2021.

Strong Dollar-Based Net Retention Rate² increased to 125% for fiscal 2021 compared with 113% for fiscal 2020 highlighting the continued success of the Company’s cross-sell and upsell strategy across its global customer base.

Cash and cash equivalents totaled €742.8 million as of December 31, 2021. Total liquidity available for use at December 31, 2021, including undrawn credit facilities was €852.8 million. 

Sportradar extended multiyear partnerships with the National Hockey League (NHL), National Basketball Association (NBA), International Tennis Federation (ITF) and Bundesliga International, in addition to securing new deals with the International Cricket Council (ICC) and the Union of European Football Associations (UEFA). These deals reinforce Sportradar’s leadership as a trusted technology and data partner to the biggest leagues and federations around the world.

The Company provided an annual outlook for full-year 2022 for revenue and Adjusted EBITDA². Revenue is expected to be in the range of €665.0 million to €700.0 million and Adjusted EBITDA² is expected to be in the range of €123.0 million to €133.0 million. Please see the “Annual Financial Outlook” section of this press release for further details.

Revenue in the fourth quarter of 2021 increased 41% to €152.4 million ($172.2 million)¹ compared with the fourth quarter of 2020, driven by robust growth across all business segments.

Continued strong performance in the U.S. market with U.S. revenue increasing by 92% to €23.2 million ($26.2 million) ¹ compared with the fourth quarter of 2020.

For the convenience of the reader, we have translated Euros amounts in the tables below at the noon buying rate of the Federal Reserve Bank of New York on December 30, 2021, which was €1.00 to $1.13.

Non-IFRS financial measure; see “Non-IFRS Financial Measures and Operating Metrics” and accompanying tables for further explanations and reconciliations of non-IFRS measures to IFRS measures.

Adjusted EBITDA² in the fourth quarter of 2021 increased 14.0% to €21.4 million ($24.2 million)¹ compared with the fourth quarter of 2020. 

Adjusted EBITDA margin² was 14% in the fourth quarter of 2021, compared with 17% over the prior year primarily as a result of increased investment in content and technology, higher costs related to being a public company, as well as higher M&A costs.

Adjusted Free Cash Flow² in the fourth quarter of 2021 decreased to (€22.5) million which resulted in a cash flow conversion² of (105.1%) primarily as a result of additional interest from the Company’s senior secured term loan facility originating in November 2020, timing of sports data licensing payments to leagues, IPO related payments as well as higher costs associated with being a public company.

Revenue

Adjusted EBITDA²

Adjusted EBITDA margin²

Adjusted Free Cash Flow²

Cash Flow Conversion²

Segment revenue in the fourth quarter of 2021 increased by 30% to €82.2 million compared with the fourth quarter of 2020. This growth was driven primarily by uptake in our higher value-add offerings including Managed Betting Services (MBS) and Live Odds Services, which increased by 74% and 26% respectively. MBS experienced record turnover³ and Live Odds grew as a result of higher volume of sports coverage.

Segment Adjusted EBITDA² in the fourth quarter of 2021 increased by 58% to €45.7 million compared with the fourth quarter of 2020. Segment Adjusted EBITDA margin² improved to 56% from 46% compared with the fourth quarter of 2020 driven by growth in higher margin products.

Full year 2021 revenue grew 32% to €309.4 million compared with the prior year of 2020. Full year Adjusted EBITDA² increased 49% to €177.0 million. Full year 2021 Adjusted EBITDA margin² improved to 57% from 51% in the prior year.

For the convenience of the reader, we have translated Euros amounts in the tables below at the noon buying rate of the Federal Reserve Bank of New York on December 30, 2021, which was €1.00 to $1.13.

Non-IFRS financial measure; see “Non-IFRS Financial Measures and Operating Metrics” and accompanying tables for further explanations and reconciliations of non-IFRS measures to IFRS measures.

Turnover is the total amount of stakes placed and accepted in betting.

Segment revenue increased in the fourth quarter of 2021 by 52% to €35.6 million compared with the fourth quarter of 2020. This growth was primarily a result of increased volume of streaming services across all major sports.

Segment Adjusted EBITDA² in the fourth quarter of 2021 increased by 77% to €9.9 million compared with the fourth quarter of 2020. Segment Adjusted EBITDA margin² improved to 28% from 24% compared with the fourth quarter of 2020.

Full year 2021 revenue grew 32% to €140.2 million compared with the prior year of 2020. Full year Adjusted EBITDA² increased 47% to €39.2 million. Full year 2021 Adjusted EBITDA margin² improved to 28% from 25% in the prior year.

Segment revenue in the fourth quarter of 2021 increased by 92% to €23.2 million compared with the fourth quarter of 2020. This growth was driven by our increased sales of U.S. Betting services as the underlying market and turnover³ grew. We also experienced strong adoption of our ad:s product, growth in U.S. Media and a positive impact from the acquisition of Synergy Sports.

Segment Adjusted EBITDA² in the fourth quarter of 2021 decreased to (€7.6) million compared with the fourth quarter of 2020 primarily due to increased investment in the Company’s league and team solutions focused business. Segment Adjusted EBITDA margin² decreased to (33%) from 11% compared with the fourth quarter of 2020 reflecting the aforementioned increased investment.

Full year 2021 revenue grew 108% to €71.7 million compared with the prior year of 2020. Full year Adjusted EBITDA² decreased 38% to (€22.6) million. Full year 2021 Adjusted EBITDA margin² improved to (32%) from (48%) in the prior year.

Personnel expenses in the fourth quarter of 2021 increased by €12.7 million to €47.0 million compared with the fourth quarter of 2020 primarily resulting from additional hires in the Company’s product and technology organizations (2,959 FTE in the fourth quarter of 2021 vs 2,366 FTE in the fourth quarter of 2020).

Other Operating expenses in the fourth quarter of 2021 increased by €13.3 million to €27.2 million compared with the fourth quarter of 2020 mainly driven by higher travel and entertainment and marketing costs as pandemic restrictions eased, higher M&A costs as well as increased costs to implement a new enterprise resource planning (ERP) system.

Total Sport rights costs in the fourth quarter of 2021 increased by €8.8 million to €38.5 million compared with the fourth quarter of 2020, primarily resulting from a normalized schedule in sports such as NBA, NHL and MLB, as COVID-19 pandemic restrictions eased.

Non-IFRS financial measure; see “Non-IFRS Financial Measures and Operating Metrics” and accompanying tables for further explanations and reconciliations of non-IFRS measures to IFRS measures.

Turnover is the total amount of stakes placed and accepted in betting.

Sportradar and the NBA announced an expansive multiyear partnership agreement that will see the NBA, Women’s National Basketball Association (WNBA) and NBA G League use Sportradar’s global and wide-ranging capabilities to grow U.S. operations, increase their international footprint and drive fan engagement. This new partnership begins with the 2023-24 NBA season and provides the NBA with an equity stake in Sportradar.

The Company extended its long-term partnership with Bundesliga International, a subsidiary of DFL Deutsche Fußball Liga, featuring a suite of AI-driven fan engagement tools which enable Genrmany’s top football league to better engage fans.

Sportradar also extended its partnership with Kambi, a leading global sports betting supplier. The deal reestablishes Sportradar as Kambi’s exclusive supplier of NBA, NHL, MLB, and college sports data in the US market.

Sportradar announced a new multi-year partnership with PointsBet, a premier global online gambling operator, that establishes Sportradar as PointsBet’s US supplier of choice for MLB, NBA, NHL, college football, and college basketball data.

Sportradar announced a partnership with UEFA’s as their exclusive authorized collector and distributor of data for betting purposes, as well as extending its role as UEFA’s official integrity partner. The Company secured this landmark agreement following UEFA’s first competitive tender process for its data distribution rights for betting purposes.

The Company strengthened its existing partnership with ITF with a three-year extension to serve as the ITF’s official data partner.

Sportradar was selected by the ICC making Sportradar its Official Data Distribution and Official Betting Live Streaming Partner. The partnership will create more opportunities for the ICC to engage with its fan base through Sportradar’s network of 1,000 media and sports-betting clients across 80 countries.

The Company underlined its commitment to protecting the integrity of sport with the launch of Universal Fraud Detection System (UFDS) free of charge. Sportradar Integrity services has utilized UFDS, to detect suspicious activity in 12 sports across more than 70 countries. Sportradar will begin delivering its UFDS bet monitoring service free of charge, to sports federations, sports leagues, and state authorities around the world, in its continued commitment to protecting the integrity of global sport and making the system accessible to all.

Sportradar announced significant high-profile hires to further strengthen its US team, including Andrew Bimson as North American Chief Operating Officer, Jim Brown as Head of Integrity Services & Harm Prevention and Rima Hyder as Head of Investor Relations.

Revenue is expected to be in the range of €665.0 million to €700.0 million ($752.0 million to $791.0 million)¹, representing growth of 18% to 25% over fiscal 2021.

Adjusted EBITDA² is expected to be in the range of €123.0 million to €133.0 million ($139.0 million to $150.0 million)¹, representing growth of 21% to 30% over fiscal 2021.

Adjusted EBITDA margin² is expected to be in the range of 18.5% to 19.0%, an improvement over the prior year.

For the convenience of the reader, we have translated Euros amounts in the tables below at the noon buying rate of the Federal Reserve Bank of New York on December 30, 2021, which was €1.00 to $1.13.

Non-IFRS financial measure; see “Non-IFRS Financial Measures and Operating Metrics” and accompanying tables for further explanations and reconciliations of non-IFRS measures to IFRS measures.

“Adjusted EBITDA” represents profit (loss) for the period adjusted for share based compensation, depreciation and amortization (excluding amortization of sports rights), impairment of intangible assets, other financial assets and equity-accounted investee, loss from loss of control of subsidiary, finance income and finance costs, and income tax (expense) benefit.

“Adjusted EBITDA margin” is the ratio of Adjusted EBITDA to revenue.

“Adjusted Free Cash Flow” represents net cash from operating activities adjusted for payments for lease liabilities, acquisition of property and equipment, acquisition of intangible assets (excluding certain intangible assets required to further support an acquired business) and foreign currency gains (losses) on our cash equivalents. We consider Adjusted 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, of intangible assets and payment of lease liabilities, which can then be used to, among other things, to invest in our business and make strategic acquisitions. A limitation of the utility of Adjusted 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.

“Cash Flow Conversion” is the ratio of Adjusted Free Cash Flow to Adjusted EBITDA.

“Dollar-Based 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 Dollar-Based Net Retention Rate.

Revenue

Purchased services and licenses (excluding depreciation and amortization)

Internally-developed software cost capitalized

Personnel expenses

Other operating expenses

Depreciation and amortization

Impairment of intangibles assets

Impairment of equity-accounted investee

Impairment loss on trade receivables, contract assets and other financial assets

Share of loss (income) of equity-accounted investees

Foreign currency gains, net

Finance income

Finance costs

Net income before tax

Income tax expense

Profit for the period

Other Comprehensive Income

Items that will not be reclassified subsequently to profit or loss

Remeasurement of defined benefit liability

Related deferred tax income (expense)

Items that may be reclassified subsequently to profit or loss

Foreign currency translation adjustment attributable to the owners of the company

Foreign currency translation adjustment attributable to non-controlling interests

Other comprehensive income for the period, net of tax

Total comprehensive income for the period

Profit (loss) attributable to:

Owners of the Company

Non-controlling interests

Total comprehensive income (loss) attributable to:

Owners of the Company

Non-controlling interests

Assets

Current assets

Cash and cash equivalents

Trade receivables

Contract assets

Other assets and prepayments

Income tax receivables

Non-current assets

Property and equipment

Intangible assets and goodwill

Equity-accounted investees

Other financial assets and other non-current assets

Deferred tax assets

Total assets

Current liabilities

Loans and borrowings

Trade payables

Other liabilities

Contract liabilities

Income tax liabilities

Non-current liabilities

Loans and borrowings

Trade payables

Other non-current liabilities

Deferred tax liabilities

Total liabilities

Ordinary shares

Participation certificates

Treasury shares

Additional paid-in capital

Retained earnings

Other reserves

Equity attributable to owners of the Company

Non-controlling interest

Total equity

Total liabilities and equity

OPERATING ACTIVITIES:

Profit for the year

Adjustments to reconcile profit for the year to net cash provided by operating activities:

Income tax expense

Interest income

Interest expense

Impairment losses on financial assets

Impairment of equity-accounted investee

Other financial expenses (income)

Foreign currency gains, net

Amortization and impairment of intangible assets

Depreciation of property and equipment

Equity-settled share-based payments

Other

Cash flow from operating activities before working capital changes, interest and income taxes

Increase in trade receivables, contract assets, other assets and prepayments

Increase in trade and other payables, contract and other liabilities

Changes in working capital

Interest paid

Interest received

Income taxes paid

Net cash from operating activities

INVESTING ACTIVITIES:

Acquisition of intangible assets

Acquisition of property and equipment

Acquisition of subsidiaries, net of cash acquired

Contribution to equity-accounted investees

Acquisition of financial assets

Collection of loans receivable

Issuance of loans receivable

Collection of deposits

Payment of deposits

Net cash used in investing activities

FINANCING ACTIVITIES:

Payment of lease liabilities

Proceeds from borrowing of bank debt

Transaction costs related to borrowings

Principal payments on bank debt

Purchase of MPP share awards

Proceeds from issuance of MPP share awards

Change in bank overdrafts

Proceeds from issue of participation certificates

Proceeds from issuance of new shares

Transaction costs related to issuance of new shares and participation certificates

Net cash from financing activities

Net increase in cash

Cash as of January 1

Effects of movements in exchange rates

Cash and cash equivalents as of December 31

in €‘000

Segment revenue

Segment Adjusted EBITDA

Unallocated corporate expenses⁽¹⁾

Adjusted EBITDA

Adjusted EBITDA margin

in €‘000

Segment revenue

Segment Adjusted EBITDA

Unallocated corporate expenses⁽¹⁾

Adjusted EBITDA

Adjusted EBITDA margin

in €‘000

Segment revenue

Segment Adjusted EBITDA

Unallocated corporate expenses⁽¹⁾

Adjusted EBITDA

Adjusted EBITDA margin

in €‘000

Segment revenue

Segment Adjusted EBITDA

Unallocated corporate expenses⁽¹⁾

Adjusted EBITDA

Adjusted EBITDA margin

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. The year over year change in these expenses is primarily as a result of the absence of COVID savings versus prior year, Company’s IPO, costs associated with being a public company as well as M&A costs.

in €‘000

Profit for the period

Share based compensation

Depreciation and amortization

Amortization of sport rights

Impairment of intangibles assets

Impairment of equity-accounted investee

Impairment loss on other financial assets

Foreign currency gains, net

Finance income

Finance costs

Income tax expense

Adjusted EBITDA

Net cash from operating activities

Acquisition of intangible assets

Acquisition of property and equipment

Payment of lease liabilities

Foreign currency gains on cash equivalents

Adjusted Free Cash Flow