Sportradar (SRAD), may not be on everyone’s radar but it is certainly making waves in the market. Their Q2 2023 earnings report just dropped and the numbers are impressive.
The market has initially reacted negative to the earnings call but that may be due to FX movements hitting the bottom line. They have a lot of positives going forward.
SRAD is less known compared to some giants in the industry, but it is proven itself a market leader with remarkable growth.
In Q2 2023, their growth rate soared to 22%, and their year to date growth stands at an impressive 25%. They are doing all of this while maintaining profitability, something to appreciate in a volatile market.
When we look at their closest rival, GENI, it’s clear SRAD is outpacing them by a significant margin. GENI achieved growth of 22% in Q2 but at a net loss of $10 million.
SRAD sill made €10.5m profit last year after buying a bunch of companies and will hit €157 million to €167 million adjusted EBITDA this year.
This contrast highlights SRAD’s ability to not only grow but also maintain a solid bottom line.
One thing to note is that Q2 tends to be a slower period for sports betting stocks due to lack of major sporting events in June, so exhibiting growth during this period showcases SRAD’s resilience and strategic approach.
As of 30th June 2023 SRAD had a total liquidity of €484 million including cash and cash equivalents of €264 million with an undrawn credit facility of €220 million. That is some serious spending power to further fuel their growth.
Also when DKNG grows, SRAD grows as SRAD Founder & CEO Carsten Koerl and DraftKings Founder Chairman & CEO Jason Robins have discussed in 2020.
https://finance.yahoo.com/news/sportradar-reports-strong-second-quarter-110000804.html
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