Sportradar Responds to Allegations on Revenue Figures

Sportradar CEO Carsten Koerl has strongly rebuffed allegations regarding the proportion of the company's revenue derived from unregulated sources. In a Q1 earnings call, Koerl clarified that unregulated revenue amounts to between 5% and 13%, despite recent reports suggesting otherwise. These insights emerged amid scrutiny from analysts following two short-selling reports alleging Sportradar's engagement with unlicensed platforms.

One report from Callisto Research estimated that unlicensed operators might contribute between 30% and 40% of Sportradar’s revenue, while another from Muddy Waters accused a company salesperson of claiming that the company “serves everyone.” These reports caused Sportradar’s share price to drop by 22.6% by the end of Wednesday, following action by Callisto Research and Muddy Waters to short stock.

CEO Carsten Koerl Dismisses Allegations as Defamatory

In response to these reports, Koerl took to LinkedIn to denounce the claims as "false, misleading and defamatory." During the earnings call, he emphasized that Sportradar does not collaborate with black market operators and maintains strict compliance measures when dealing with grey market entities. "We do not work with black market operators," he reiterated, outlining their rigorous compliance structure that involves engaging only with licensed operators.

Koerl dismissed the allegations as driven by self-interest to drive down Sportradar's stock and clarified that regulatory licenses are maintained globally by Sportradar, which has been a trusted operator for 25 years. The CEO detailed the positive feedback received from partners and regulators in light of the accusations, suggesting widespread support for Sportradar and reassurance of the company's ethical practices.

Operational Updates and Financial Overview

Amid the turbulence, Sportradar reported a €6 million loss in Q1, notwithstanding a revenue increase of 11% to €347 million, and adjusted EBITDA climbed 12% year-on-year to €66 million. In operational news, Sportradar announced the appointment of Sameer Deen as COO, starting May 18. Previously with Entain, Deen's strategic role is expected to enhance Sportradar's commercial and operational frameworks.

Concluding the quarterly review, Koerl reaffirmed Sportradar's dedication to innovation, integrity, and achieving value for stakeholders. This reaffirmation comes amid challenging allegations and financial performance metrics that underscore Sportradar's continued growth strategy and market confidence. Despite short-seller claims, the company remains focused on its long-term objectives and regulatory compliance.

Source: igamingbusiness.com