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Sportradar has trimmed both its full-year 2026 adjusted EBITDA and revenue guidance even as second-quarter revenue rose 19% year-on-year. The sports technology provider now expects adjusted EBITDA of between €360 million and €368 million, down from a previous range of €390 million to €400 million, while revenue guidance has been lowered to €1.52 billion to €1.53 billion from €1.56 billion to €1.58 billion.
Forecasts Pulled Back Despite Growth
It further slashed its guidance on the revenue growth at constant currency from 23%-25% to 19%-21% and adjusted EBITDA growth rate from 34%-37% to 24%-27%. It did not provide reasons for its revision.
The guidance was provided by the company in light of its expectations on weaker US growth, FX pressures, and increasing sports rights and operational costs. Despite all that, the second quarter was marked by revenue growth across various business segments.
Second-Quarter Revenue Climbs
Revenue for the quarter reached €377.8 million, while adjusted EBITDA rose 19.5% to €76.3 million. The adjusted EBITDA margin held at 20.2%, almost unchanged from 20.1% a year earlier.
Betting Technology & Solutions revenue increased 21.2% to €313.6 million. Sportradar said the segment was supported by greater demand in both sports data and betting streaming rights, including rights acquired through its IMG ARENA deal, as well as new customer uptake.
Betting & Gaming Content posted even stronger growth, rising 27%. The company linked that performance to sports data and betting streaming rights obtained through the IMG ARENA acquisition, together with new customer gains.
Sports Content, Technology & Services revenue climbed 8.8% to €64.2 million, helped by growth in Marketing & Media Services. Sports Performance revenue, however, fell 13%, with currency movements cited as the main reason.
A comparison from Deutsche Bank showed Sportradar’s revenue and adjusted EBITDA came in below both the bank’s estimates and market consensus. The largest gap against the bank’s forecast was in Sports Content, Technology & Services, while Deutsche Bank had expected the company to remain profitable.
FX Pressure Weighs On Results
Sportradar reported a net loss of €3.5 million, compared with a €49.1 million profit in the same quarter a year earlier. The company said the reversal was mainly driven by a €9 million foreign-exchange loss, versus a €54 million gain a year ago.
That movement was tied largely to unrealized currency fluctuations involving US dollar-denominated sports rights. The quarter also included severance costs linked to cost-efficiency initiatives.
Sports-rights expenses rose 29.7% to €137.8 million, mainly due to rights added through the IMG ARENA acquisition. Adjusted other operating expenses increased 41.8% to €34.6 million, which Sportradar attributed to costs in Brazil and legal expenses partly tied to expansion into adjacent markets.
Those increases were partly offset by a 3.6% decline in adjusted personnel expenses to €76.8 million. Revenue outside the US rose 20%, while US revenue increased 16% despite what Sportradar described as moderating market growth.
CEO Highlights Demand For Premium Offerings
According to chief executive Carsten Koerl, the reason behind double-digit growth is high demand for the company’s premium content, data, and technological solutions, including monetization of the IMG ARENA rights portfolio.
However, the latest guidance adjustment demonstrates that the company is bracing itself for tougher results for the year compared to those it expected before, due to the fact that Q4 results were overshadowed by foreign currency losses, rising expenses, and caution for the rest of 2026.
Source: Asia Gaming Brief
