Sportradar Hints at Reducing Workforce Amid Strong Q3 Results

The leading global sports technology company developing immersive experiences for bettors and sports fans across the globe, Sportradar Group AG, released its latest trading update Wednesday. The company uncovered details regarding its financial performance for the quarter ended September 30, 2023, revealing an uptick in revenue along with a decrease in total profit from continuing operations.

Overall, Sportradar’s Q3 2023 revenue soared to €201.0 million ($213.7 million). This result, when compared to the €178.8 million ($190.1 million) figure from the corresponding period in 2022, marked a strong growth of 12%.

Similarly, adjusted EBITDA in Q3 this year increased. The company confirmed that adjusted EBITDA in Q3 this year hit €50.5 million ($53.7 million), up by 38% compared to the €36.5 million ($38.8 million) result from Q3 last year. According to the new report, the increase in adjusted EBITDA was primarily “primarily due to strong revenue growth and higher operating leverage.”

In contrast to the positive increase in adjusted EBITDA and revenue, Sportradar posted a decrease in profit for the period from continuing operations. Overall, the company saw €4.6 million ($4.9 million) in profit from continuing operations for Q3 this year. A comparison to the €12.8 million ($13.6 million) result from Q3 2022, reveals a decrease of the staggering 64%.

Another decrease was observed in the profit for the period from continuing operations as a percentage of revenue which decreased to 2% in Q3 this year, down from 7% from the corresponding period in 2022.

Additional details released by Sportradar reveal that its net retention rate was 116% for the latest trading period. This result, the company said, reaffirms its “strength in cross selling and upselling to its clients.”

The Company Confirms Plans for Workforce Reduction

Besides its financial update, this week, Sportradar confirmed its plans for a reduction of its global workforce. The action is part of a company-wide strategic initiative that seeks to optimize its portfolio, improve product ROI and streamline its operating structure. According to Sportradar, once the process is completed, it anticipates an “approximate 10% reduction in 2023 labor cost run rates and contribute positively to future operating leverage.”

“This week we announced a reduction in our global workforce as part of a broader set of strategic initiatives that will enable us to further strengthen our client-centric organization and focus on the market opportunities ahead of us.“

Carsten Koerl, CEO at Sportradar

Carsten Koerl, Sportradar’s CEO, addressed the workforce reduction announced by the company. He explained that this initiative is part of a strategic plan that will help boost the company’s operations while creating new market opportunities.

Koerl added that the company anticipates seeing strong results throughout 2023 and retaining the positive momentum into next year. Finally, he spoke about Sportradar’s ongoing commitment to delivering value to its shareholders, partners and clients.