6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2022

Commission File Number: 001-40799

 

 

SPORTRADAR GROUP AG

(Translation of registrant’s name into English)

 

 

Feldlistrasse 2

CH-9000 St. Gallen

Switzerland

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒                Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 


EXPLANATORY NOTE

Second Quarter 2022 Results

On August 17, 2022, Sportradar Group AG (the “Company”) issued a press release titled “Sportradar Reports Strong Growth in Second Quarter 2022 and Increases its Revenue Outlook for Fiscal 2022 Projecting Revenue Growth of 24% to 27%.” A copy of the press release is furnished as Exhibit 99.1 herewith. The IFRS financial information contained in the (i) consolidated statements of profit or loss and other comprehensive income, (ii) consolidated statements of financial position, and (iii) consolidated statements of cash flows included in the press release attached as Exhibit 99.1 hereto is hereby incorporated by reference into the Company’s Registration Statement on Form S-8 (File No. 333-259885).

Chief Financial Officer Update

The Company has announced that Alex Gersh, the Company’s Chief Financial Officer, tendered his resignation effective September 30, 2022, in furtherance of his acceptance of new employment in the United States where he intends to relocate with his family. Mr. Gersh will remain with the Company until September 30 and will assist with an orderly transition of his responsibilities. The Company has initiated a search for Mr. Gersh’s successor and has appointed, effective September 30, 2022, Ulrich Harmuth as Interim Chief Financial Officer.

Mr. Harmuth, age 45, has served as a member of the Company’s management team since 2013. Since December 2020, he has served as the Company’s Chief Strategy Officer and prior to that, he was Managing Director of Digital and Managing Director of Corporate Development from March 2013 to December 2020. Prior to joining the Company, Mr. Harmuth served as a Private Equity Investment Advisor at EQT Partners, in addition to other positions in private equity.

 

Exhibit 
Number
  

Description

99.1    Press Release of Sportradar Group AG, dated August 17, 2022.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 17, 2022

 

SPORTRADAR GROUP AG
By:  

/s/ Carsten Koerl

Name: Carsten Koerl
Title: Chief Executive Officer
EX-99.1

Exhibit 99.1

 

LOGO

SPORTRADAR REPORTS STRONG GROWTH IN SECOND QUARTER 2022 AND INCREASES ITS REVENUE OUTLOOK FOR FISCAL 2022 PROJECTING REVENUE GROWTH OF 24% to 27%

Overall revenue increased 23%; U.S. revenue increased 66% year over year

ST. GALLEN, Switzerland, August 17, 2022 – Sportradar Group AG (NASDAQ: SRAD) (“Sportradar” or the “Company”), the leading global technology company enabling next generation engagement in sports, and the number one provider of business-to-business solutions to the global sports betting industry, today announced financial results for its second quarter ended June 30, 2022.

Second Quarter 2022 Highlights

 

   

Revenue in the second quarter of 2022 increased 23% to €177.2 million ($186.0 million)1 compared with the second quarter of 2021, driven by strong growth across all business segments. In particular, U.S. segment revenue grew by 66% to €29.1 million ($30.5 million) compared with the second quarter of 2021.

 

   

Adjusted EBITDA2 in the second quarter of 2022 decreased 13% to €27.6 million ($28.9 million)1 compared with the second quarter of 2021 primarily due to costs associated with additional organic and inorganic headcount growth and new and renewed sport rights contracts and the impact of the Russia/Ukraine conflict.

 

   

Adjusted EBITDA margin2 was 16% in the second quarter of 2022, compared with 22% over the prior year period.

 

   

Adjusted Free Cash Flow2 in the second quarter of 2022 increased to €35.7 million, compared to negative Adjusted Free Cash Flow of €2.3 million for the prior year period. The resulting Free Cash Flow Conversion2 was 129% in the quarter.

 

   

Net Retention Rate2, based on the last twelve months, was strong at 115% at the end of the second quarter of 2022 highlighting the continued success of the Company’s cross-sell and upsell strategy across its global customer base. For second quarter 2021, the Net Retention Rate was 120%.

 

   

Cash and cash equivalents totaled €715.6 million as of June 30, 2022. Total liquidity available for use on June 30, 2022, including undrawn credit facilities, was €825.6 million.

 

   

In July 2022, Sportradar prepaid €200.0 million principal amount of its €420.0 million senior secured term loan Facility B. Significant cash flow generation has allowed the Company to reduce its debt while maintaining flexibility for acquisitions and additional investment in technology and products.

 

   

The Company upgraded its previously provided annual outlook for full-year 2022 for revenue and maintained its outlook for Adjusted EBITDA2. Please see the “Annual Financial Outlook” section of this press release for further details.

 

Key Financial Measures    Q2     Q2     Change  
In millions, in Euros    2022     2021     %  

Revenue

     177.2       143.6       23

Adjusted EBITDA2

     27.6       31.6       (13 %) 

Adjusted EBITDA margin2

     16     22     —    

Adjusted Free Cash Flow2

     35.7       (2.3     —    

Free Cash Flow Conversion2

     129     (7 )%      —    

 

1 

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 on June 30, 2022, which was €1.00 to $1.05.

2 

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.

 

1


Carsten Koerl, Chief Executive Officer of Sportradar said: “As the world’s leading provider of technology solutions to the sports betting industry, our Q2 revenue exceeded our expectations for the quarter, growing 23% year-over-year. Confident about the momentum we have built in our business, we are raising our revenue guidance for the year. Given our strong cash flow generation and demonstrated good stewards of our capital, we have also chosen to pay down about half of our outstanding debt. We remain as confident as ever in the leverage and scalability of our business, and our ability to deliver results in the face of global challenges and economic conditions.”

“Separately, our Chief Financial Officer, Alex Gersh, has decided that he will be leaving the company to accept another position in the United States where he will move with his family. I appreciate Alex’s many contributions to Sportradar and invite you to join me in wishing him well as he embarks on his next chapter. We have launched a search for a new CFO, and have named Ulrich Harmuth as interim CFO. Ulrich, who has been with the company since 2013, has served as Chief Strategy Officer since 2020 and has been a member of my management team overseeing corporate development activities, including M&A, strategic partnerships, and ventures. I am confident in Ulrich’s leadership to support Sportradar’s growth and the continued execution of our financial priorities.”

Segment Information

RoW Betting

 

   

Segment revenue in the second quarter of 2022 increased by 21% to €95.5 million compared with the second quarter of 2021. This growth was driven primarily by increased sales of our higher value-add offerings including Managed Betting Services (MBS) which increased 65% to €32.9 million and Live Odds Services, which increased 9% to €28.5 million. MBS growth was attributable to record turnover3 and Live Odds Services grew as a result of upselling content to existing customers. Additionally, increased content sales from last year’s Synergy Sports acquisition contributed to the growth in revenue.

 

   

Segment Adjusted EBITDA2 in the second quarter of 2022 decreased by 8% to €43.3 million compared with the second quarter of 2021. Segment Adjusted EBITDA margin2 decreased to 45% from 59% in the second quarter of 2021 driven by the impact of the Russia/Ukraine conflict, acquisition of new sport rights as well as temporary savings in sport rights and scouting costs in the prior year due to the COVID-19 pandemic.

RoW Audiovisual (AV)

 

   

Segment revenue in the second quarter of 2022 increased by 9% to €39.7 million compared with the second quarter of 2021. Growth was driven by new customers and traction with our Synergy Sports acquisition, offset by the impact of the Russia/Ukraine conflict.

 

   

Segment Adjusted EBITDA2 in the second quarter of 2022 increased 22% to €13.1 million compared with the second quarter of 2021. Segment Adjusted EBITDA margin2 increased to 33% from 29% compared with the second quarter of 2021 primarily due to lower sports rights costs.

United States

 

   

Segment revenue in the second quarter of 2022 increased by 66% to €29.1 million compared with the second quarter of 2021. This growth was driven by increased sales of U.S. Betting services primarily as a result of new states legalizing betting. We also experienced growth from increased sales to media companies and a positive impact from the acquisition of Synergy Sports.

 

2 

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.

3 

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

 

2


   

Segment Adjusted EBITDA2 in the second quarter of 2022 was (€5.5) million compared with the second quarter of 2021 of (€4.6) million, primarily due to increased investment in the Company’s league and team solutions focused business. Segment Adjusted EBITDA margin2 improved to (19%) from (27%) compared with the second quarter of 2021 reflecting an improvement in the U.S. segment operating leverage.

Costs and Expenses

 

   

Purchased services and licenses in the second quarter of 2022 increased by €10.6 million to €43.2 million compared with the second quarter of 2021, primarily resulting from increased costs of content creation and processing.

 

   

Personnel expenses in the second quarter of 2022 increased by €17.6 million to €64.4 million compared with the second quarter of 2021 primarily resulting from additional organic and inorganic hires in the Company’s product and technology organizations. Employee headcount increased by 789 (of which 354 were inorganic) to 3,520 full-time employees at the end of the second quarter of 2022 compared with the second quarter of 2021.

 

   

Other Operating expenses in the second quarter of 2022 remained substantially unchanged at €21.2 million.

 

   

Total Sport rights costs in the second quarter of 2022 increased by €13.8 million to €48.7 million compared with the second quarter of 2021, primarily a result of new acquired rights in 2022 for the NHL, UEFA, ATP and a normalized schedule in many sports, including the NBA, as COVID-19 pandemic restrictions eased.

Recent Business Highlights

 

   

In July 2022, Sportradar repaid €200 million principal amount of its €420 million senior secured term loan Facility B. Continued revenue growth and our strong liquidity position enabled the Company to prepay a portion of the outstanding term loan and the Company has confidence that future cash flow generation will allow it to invest in the business and take advantage of market opportunities as they arise.

 

   

Sportradar partners with Turkish Basketball Federation on comprehensive rights deal. Encompassing the first-tier Turkish Basketball Super League (BLS), the second-tier Turkish Basketball First League (TBL) and all cup competitions, Sportradar will have (i) international rights to all BSL and TBL games starting with the 2023 season and (ii) domestic rights beginning in the 2024-2025 season. The partnership includes a comprehensive set of Sportradar solutions including Universal Fraud Detection Systems, Synergy Automated Camera Systems, and AI video capture technology in 27 venues in Turkey.

 

   

Sportradar launches Athlete Wellbeing. This global program was developed for leagues and federations, teams, and collegiate governing bodies to help support athletes’ and reduce the potential impact of sports betting on their mental health. This program will offer a comprehensive curriculum including on-demand virtual sessions, pre-recorded webinars and in-person workshops.

 

   

Sportradar bolster’s cricket offering with launch of world’s first virtual cricket in-play solution. Modeled on the popular T20 cricket format, Sportradar brings hyper-real 3D animation with over 400 million unique game situations. With over 2.5 billion cricket fans worldwide, our solution offers over 3.8 billion unique video seconds featuring the top eight teams from India’s leading T20 competition.

 

   

Sportradar to deepen fan engagement for groupe FDJ with launch of automated near-live short-form video content. Our company is providing ParionsSport en ligne, the French operator FDJ’s online sports betting activity, with an artificial intelligence driven, near-live premium sports video content offering to create deeper engagement with the sports betting service’s customer base of sports fans.

Annual Financial Outlook

Sportradar is upgrading its revenue outlook and reiterating its Adjusted EBITDA outlook for fiscal 2022 as follows:

 

   

Sportradar is upgrading its revenue outlook for fiscal 2022 from its previous range of €665.0 million to €700.0 million ($698.3 million to $735.0 million) 1 to a new range of €695.0 million to €715.0 million ($729.8 million to $750.8 million), representing prospective growth of 24% to 27% over fiscal 2021.

 

3


   

Adjusted EBITDA2, negatively impacted by the Russia/Ukraine conflict, is expected to remain in the range of €123.0 million to €133.0 million ($129.2 million to $139.7 million)1, representing growth of 21% to 30% over fiscal 2021.

 

   

Adjusted EBITDA margin2 is expected to be in the range of 17% to 19%.

Conference Call and Webcast Information

Sportradar will host a conference call to discuss the second quarter 2022 financial results today, August 17, 2022, 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 is the leading global sports technology company creating immersive experiences for sports fans and bettors. Established in 2001, the company is well-positioned at the intersection of the sports, media and betting industries, providing sports federations, news media, consumer platforms and sports betting operators with a range of solutions to help grow their business. Sportradar employs more than 3,500 full-time employees across 20 countries around the world. It is our commitment to excellent service, quality and reliability that makes us the trusted partner of more than 1,700 customers in over 120 countries and an official partner of the NBA, NHL, MLB, NASCAR, UEFA, FIFA, ICC and ITF. We cover more than 890,000 events annually across 92 sports. With deep industry relationships, Sportradar is not just redefining the sports fan experience; it also safeguards the sports themselves through its Integrity Services division and advocacy for an integrity-driven environment for all involved.

CONTACT

Investor Relations:

Rima Hyder, SVP Head of Investor Relations

Christin Armacost, CFA, Manager Investor Relations

investor.relations@sportradar.com

Media:

Sandra Lee

comms@sportradar.com

Non-IFRS Financial Measures and Operating Metrics

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 Free Cash Flow and Free Cash Flow Conversion (together, the “Non-IFRS financial measures”), as well as operating metrics, including Dollar-Based Net Retention Rate. We use these non-IFRS financial measures internally in analyzing our financial

 

 

1 

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 on June 30, 2022, which was €1.00 to $1.05.

2 

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.

 

4


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 (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, remeasurement of previously held equity-accounted investee, non-routine litigation costs, professional fees for SOX and ERP implementations, foreign currency (gains) losses, finance income and finance costs, and income tax (expense) benefit and certain other non-recurring items, as described in the reconciliation below.

License fees relating to sport 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 rights licenses. Management believes that, by deducting the full amount of 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 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.

 

   

“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.

 

   

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

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

 

5


 

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. We have referred to this calculation as “Dollar-Based Net Retention Rate” in prior press releases, which is the same calculation we are now using for “Net Retention Rate” in this press release.

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 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 expected performance for the full year 2022. 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,” “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 conflict; 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 for 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, 2021, 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, You 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.

 

6


SPORTRADAR GROUP AG

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

(Expressed in thousands of Euros – except for per share data)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2021     2022     2021     2022  

Revenue

     143,601       177,189       272,072       345,065  

Purchased services and licenses (excluding depreciation and amortization)

     (32,614     (43,240     (56,563     (80,076

Internally-developed software cost capitalized

     3,366       4,768       5,917       8,776  

Personnel expenses

     (46,843     (64,442     (85,445     (116,696

Other operating expenses

     (20,437     (21,172     (34,941     (40,679

Depreciation and amortization

     (27,885     (49,102     (64,089     (101,572

Impairment (loss) gain on trade receivables, contract assets and other financial assets

     (287     378       (102     (634

Remeasurement of previously held equity-accounted investee

     —         7,698       —         7,698  

Share of (loss) gain of equity-accounted investees

     (416     4       (1,090     (97

Foreign currency gains, net

     8,135       18,436       1,383       28,855  

Finance income

     1,815       638       3,524       724  

Finance costs

     (7,638     (9,212     (15,339     (18,134
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income before tax

     20,797       21,943       25,327       33,230  

Income tax (expense) benefit

     (5,496     873       (7,677     (2,206
  

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

     15,301       22,816       17,650       31,024  
  

 

 

   

 

 

   

 

 

   

 

 

 

Other Comprehensive Income

        

Items that will not be reclassified subsequently to profit or loss

        

Remeasurement of defined benefit liability

     18       1,433       36       1,451  

Related deferred tax expense

     (2     (207     (5     (210
  

 

 

   

 

 

   

 

 

   

 

 

 
     16       1,226       31       1,241  

Items that may be reclassified subsequently to profit or loss

        

Foreign currency translation adjustment attributable to the owners of the company

     1,117       6,117       617       7,803  

Foreign currency translation adjustment attributable to non-controlling interests

     51       55       (98     4  
  

 

 

   

 

 

   

 

 

   

 

 

 
     1,168       6,172       519       7,807  
  

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income for the period, net of tax

     1,184       7,398       550       9,048  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income for the period

     16,485       30,214       18,200       40,072  
  

 

 

   

 

 

   

 

 

   

 

 

 

Profit attributable to:

        

Owners of the Company

     15,226       22,790       17,435       30,912  

Non-controlling interests

     75       26       215       112  
  

 

 

   

 

 

   

 

 

   

 

 

 
     15,301       22,816       17,65       31,024  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income attributable to:

        

Owners of the Company

     16,359       30,133       18,083       39,956  

Non-controlling interests

     126       81       117       116  
  

 

 

   

 

 

   

 

 

   

 

 

 
     16,485       30,214       18,200       40,072  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average of Class A and Class B shares (basic)* as of June 30, 2022

           297,077  

Weighted-average of Class A and Class B shares (diluted)* as of June 30, 2022

           311,030  

 

*

Class B shares are included with a conversion rate 1/10

 

7


SPORTRADAR GROUP AG

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Expressed in thousands of Euros)

 

     December 31     June 30,  
     2021     2022  

Assets

    

Current assets

    

Cash and cash equivalents

     742,773       715,560  

Trade receivables

     33,943       50,941  

Contract assets

     40,617       46,819  

Other assets and prepayments

     31,161       32,172  

Income tax receivables

     1,548       1,676  
  

 

 

   

 

 

 
     850,042       847,168  
  

 

 

   

 

 

 

Non-current assets

    

Property and equipment

     35,923       37,090  

Intangible assets and goodwill

     808,472       887,159  

Equity-accounted investees

     8,445       45  

Other financial assets and other non-current assets

     41,331       43,911  

Deferred tax assets

     26,908       32,010  
  

 

 

   

 

 

 
     921,079       1,000,215  
  

 

 

   

 

 

 

Total assets

     1,771,121       1,847,383  
  

 

 

   

 

 

 

Current liabilities

    

Loans and borrowings

     6,086       6,620  

Trade payables

     150,012       193,218  

Other liabilities

     59,992       44,770  

Contract liabilities

     22,956       20,664  

Income tax liabilities

     14,190       19,133  
  

 

 

   

 

 

 
     253,236       284,405  
  

 

 

   

 

 

 

Non-current liabilities

    

Loans and borrowings

     429,264       429,223  

Trade payables

     320,428       319,066  

Other non-current liabilities

     7,081       20,085  

Deferred tax liabilities

     25,478       28,850  
  

 

 

   

 

 

 
     782,251       797,224  
  

 

 

   

 

 

 

Total liabilities

     1,035,487       1,081,629  

Ordinary shares

     27,297       27,323  

Treasury shares

     —         (643

Additional paid-in capital

     606,057       577,402  

Retained earnings

     89,693       130,706  

Other reserves

     15,776       24,820  
  

 

 

   

 

 

 

Equity attributable to owners of the Company

     738,823       759,608  
  

 

 

   

 

 

 

Non-controlling interest

     (3,189     6,146  
  

 

 

   

 

 

 

Total equity

     735,634       765,754  
  

 

 

   

 

 

 

Total liabilities and equity

     1,771,121       1,847,383  
  

 

 

   

 

 

 

 

8


SPORTRADAR GROUP AG

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of Euros)    

 

     Six Months Ended June 30,  
     2021     2022  

OPERATING ACTIVITIES:

    

Profit for the period

     17,650       31,024  

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

    

Income tax expense

     7,677       2,206  

Interest income

     (3,505     (724

Interest expense

     15,314       18,125  

Impairment losses on financial assets

     260       176  

Remeasurement of previously held equity-accounted investee

     —         (7,698

Other financial expenses (income) net

     5       (126

Foreign currency gains, net

     (1,383     (28,855

Amortization of intangible assets

     59,327       95,884  

Depreciation of property and equipment

     4,762       5,688  

Equity-settled share-based payments

     8,522       12,687  

Other

     755       (1,135
  

 

 

   

 

 

 

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

     109,384       127,252  
  

 

 

   

 

 

 

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

     (16,946     (19,602

Increase in trade and other payables, contract and other liabilities

     (4,968     (3,409
  

 

 

   

 

 

 

Changes in working capital

     (21,914     (23,011
  

 

 

   

 

 

 

Interest paid

     (14,339     (17,355

Interest received

     —         735  

Income taxes paid, net

     (5,587     (3,198
  

 

 

   

 

 

 

Net cash from operating activities

     67,544       84,423  
  

 

 

   

 

 

 

INVESTING ACTIVITIES:

    

Acquisition of intangible assets

     (58,317     (70,587

Acquisition of property and equipment

     (2,042     (1,565

Acquisition of subsidiaries, net of cash acquired

     (197,931     (47,732

Collection of loans receivable

     221       120  

Issuance of loans receivable

     (1,300     —    

Collection of deposits

     51       20  

Payment of deposits

     (75     (59
  

 

 

   

 

 

 

Net cash used in investing activities

     (259,393     (119,803
  

 

 

   

 

 

 

FINANCING ACTIVITIES:

    

Payment of lease liabilities

     (3,029     (3,183

Acquisition of non-controlling interests

     —         (28,246

Principal payments on bank debt

     (2,084     (289

Purchase of treasury shares

     —         (677

Proceeds from issuance of MPP share awards

     1,650       —    

Change in bank overdrafts

     (63     27  

Proceeds from issue of participation certificates

     1,002       —    
  

 

 

   

 

 

 

Net cash used in financing activities

     (2,524     (32,368
  

 

 

   

 

 

 

Net increase in cash

     (194,373     (67,748

Cash and cash equivalents as of January 1

     385,542       742,773  

Effects of movements in exchange rates

     (490     40,535  
  

 

 

   

 

 

 

Cash and cash equivalents as of June 30

     190,679       715,560  
  

 

 

   

 

 

 

 

9


The tables below show the information related to each reportable segment for the three and six month periods ended June 30, 2021 and 2022.

 

     Three Months Ended June 30, 2021  

in €‘000

   RoW
Betting
    RoW
Betting
AV
    United
States
    Total
reportable
segments
    All other
segments
    Total  

Segment revenue

     79,183       36,317       17,481       132,981       10,620       143,601  

Segment Adjusted EBITDA

     46,982       10,667       (4,644     53,005       (783     52,222  

Unallocated corporate expenses(1)

               (20,625
            

 

 

 

Adjusted EBITDA

               31,597  
            

 

 

 

Adjusted EBITDA margin

     59     29     (27 %)      40     (7 %)      22

 

     Three Months Ended June 30, 2022  

in €‘000

   RoW
Betting
    RoW
Betting
AV
    United
States
    Total
reportable
segments
    All other
segments
    Total  

Segment revenue

     95,513       39,741       29,066       164,320       12,869       177,189  

Segment Adjusted EBITDA

     43,324       13,053       (5,498     50,879       (4,899     45,980  

Unallocated corporate expenses(1)

               (18,427
            

 

 

 

Adjusted EBITDA

               27,553  
            

 

 

 

Adjusted EBITDA margin

     45     33     (19 %)      31     (38 %)      16

 

     Six Months Ended June 30, 2021  

in €‘000

   RoW
Betting
    RoW
Betting
AV
    United
States
    Total
reportable
segments
    All other
segments
    Total  

Segment revenue

     148,522       75,603       28,916       253,041       19,031       272,072  

Segment Adjusted EBITDA

     86,586       19,640       (8,262     97,964       (1,691     96,273  

Unallocated corporate expenses(1)

               (36,506
            

 

 

 

Adjusted EBITDA

               59,767  
            

 

 

 

Adjusted EBITDA margin

     58     26     (29 %)      39     (9 %)      22

 

     Six Months Ended June 30, 2022  

in €‘000

   RoW
Betting
    RoW
Betting
AV
    United
States
    Total
reportable
segments
    All other
segments
    Total  

Segment revenue

     182,250       85,664       54,733       322,647       22,418       345,065  

Segment Adjusted EBITDA

     87,942       21,987       (11,920     98,009       (8,613     89,396  

Unallocated corporate expenses(1)

               (35,142
            

 

 

 

Adjusted EBITDA

               54,254  
            

 

 

 

Adjusted EBITDA margin

     48     26     (22 %)      30     (38 %)      16

 

(1)

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.

 

10


The following table reconciles Adjusted EBITDA to the most directly comparable IFRS financial performance measure, which is profit for the period:

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 

in €‘000

   2021     2022     2021     2022  

Profit for the period

     15,301       22,816       17,650       31,024  

Share based compensation

     4,656       8,776       8,522       12,687  

Litigation costs1

     —         1,887       —         3,171  

Professional fees for SOX and ERP implementations

     —         1,114       —         2,539  

One-time charitable donation for Ukrainian relief activities

     —         —         —         147  

Depreciation and amortization

     27,885       49,102       64,089       101,572  

Amortization of sport rights

     (19,428     (37,857     (48,863     (80,125

Impairment loss on other financial assets

     —         148       260       176  

Remeasurement of previously held equity-accounted investee

     —         (7,698     —         (7,698

Foreign currency gains, net

     (8,135     (18,436     (1,383     (28,855

Finance income

     (1,815     (638     (3,524     (724

Finance costs

     7,638       9,212       15,339       18,134  

Income tax expense (benefit)

     5,496       (873     7,677       2,206  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     31,597       27,553       59,767       54,254  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

Includes legal related costs in connection with a non-routine litigation.

The following table presents a reconciliation of Adjusted Free Cash Flow to the most directly comparable IFRS financial performance measure, which is net cash from operating activities:

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 

in €‘000

   2021     2022     2021     2022  

Net cash from operating activities

     24,825       42,695       67,544       84,423  

Acquisition of intangible assets

     (24,550     (36,332     (58,317     (70,587

Acquisition of property and equipment

     (1,501     (176     (2,042     (1,565

Payment of lease liabilities

     (1,074     (1,739     (3,029     (3,183

Foreign currency gains on cash equivalents

     —         31,221       —         39,464  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Free Cash Flow

     (2,300     35,669       4,156       48,552  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

11