Currency fluctuations leave Sportradar at a loss despite revenue growing by 11 per cent
Loss for the period was €6m, down €31m, compared to a profit of €24m in the same quarter a year ago
Sportradar generated revenue for the first quarter of €347m, up €35m, or 11 per cent year-over-year, driven by 15 per cent growth in Betting Technology & Solutions, partially offset by a four per cent decline in Sports Content, Technology & Services.
Loss for the period was €6m, down €31m, compared to a profit of €24m in the same quarter a year ago, as the company’s strong operating results were more than offset primarily by a foreign currency loss of €9m versus a gain of €28m in the same period a year ago, due principally to unrealised currency fluctuations mainly associated with US dollar-denominated sports rights.
Betting Technology & Solutions revenues of €288m were up 15 per cent year-over-year primarily driven by a 20 per cent increase in Betting & Gaming Content due to contributions related to the acquisition of IMG ARENA, uptake of the Company’s content and products, as well as US market growth, partially offset by the significant impact of foreign currency movements. Managed Betting Services revenues declined two per cent, as higher turnover in the Managed Trading Services business was offset by unfavorable sporting outcomes during the quarter.
Sports Content, Technology & Services revenues of €59m declined four per cent year-over-year primarily driven by a nine per cent decline in Marketing & Media Services, due primarily to a reduction in marketing campaigns from certain existing customers during the quarter, partially offset by increased revenue from Integrity Services.
Sportradar said: “The company generated strong revenue growth globally with Rest of World up 14 per cent and the United States up four per cent. Foreign currency movements, particularly due to the US dollar relative to the Euro, continue to negatively impact earnings. As a percentage of total company revenues, United States revenue represented 26 per cent of total company revenue in the first quarter as compared to 28 per cent in the prior year quarter.”
