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Sportradar targets 20% growth, authorizes buyback

Published 20/03/2024, 11:42 pm
© Reuters.
SRAD
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ST. GALLEN, Switzerland - Sportradar Group AG (NASDAQ: SRAD), a prominent sports technology company, reported a 20% increase in revenue and a 33% rise in adjusted EBITDA for the fiscal year ended December 31, 2023. The company also announced a $200 million share repurchase program, reflecting its confidence in its financial outlook and ability to generate excess capital.

For the full year of 2023, Sportradar's revenue reached €877.6 million, with significant contributions from its betting segment in the Rest of the World and the U.S. markets. The company's total profit from continuing operations surged to €34.6 million, marking a substantial increase from the previous year's €10.5 million.

Sportradar's adjusted EBITDA for 2023 stood at €166.8 million, at the upper end of its annual outlook range. The adjusted EBITDA margin expanded by 177 basis points to 19%, primarily due to operational efficiencies in sports rights and personnel costs.

The company's strong performance is underpinned by its innovative product suite, including the ATP Service+ and agreements with major sports organizations like NASCAR, CONMEBOL, and the Bundesliga. Sportradar's Net Retention Rate was 111% in the fourth quarter, indicating strong cross-selling and upselling to clients.

Looking ahead, Sportradar anticipates at least a 20% year-over-year growth in revenue and adjusted EBITDA for fiscal 2024, targeting revenue of at least €1,050 million and an adjusted EBITDA of at least €200 million.

The share buyback program is set to commence following the company's Q1 2024 earnings report. This decision aligns with Sportradar's strategic focus on disciplined growth and value delivery for clients and shareholders.

The information in this article is based on a press release statement.

InvestingPro Insights

Sportradar Group AG (NASDAQ: SRAD) has demonstrated a robust financial performance as highlighted in their recent earnings report. To provide additional context to investors, here are some key metrics and insights from InvestingPro that could be of interest:

The company's market capitalization stands at about $3 billion USD, and while the P/E ratio appears negative at -127.26, reflecting challenges in profitability over the last twelve months, analysts from InvestingPro predict that Sportradar will become profitable this year. This forecast aligns with the company's own optimistic revenue and adjusted EBITDA growth projections for fiscal 2024. Furthermore, Sportradar's revenue growth has been impressive, showing a 22.93% increase over the last twelve months as of Q3 2023, which underscores the company's strong market position and the success of its strategic initiatives.

InvestingPro Tips suggest that Sportradar holds more cash than debt on its balance sheet and has liquid assets that exceed its short-term obligations, indicating a solid financial footing. These factors may provide investors with confidence in Sportradar's ability to manage its financials prudently and sustain its growth trajectory. Additionally, the stock price movements are noted to be quite volatile, which could be relevant for investors looking for opportunities in price fluctuations.

For those interested in deeper analysis and more InvestingPro Tips, such as the company's trading at a high EBIT valuation multiple or its policy on dividends, InvestingPro offers a comprehensive list of insights. There are 6 additional tips available for Sportradar on InvestingPro. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and explore these insights to better inform your investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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