SBC News Voice of the Sports Betting Industry
Sportradar AG is building strong commercial momentum as it pursues its post-IPO goal of surpassing €1bn in revenue.
In its Q3 report, this global Nasdaq-listed sports technology company announced a 27% increase in revenue to €255m (up from €201m in Q3 2023). Year-to-date, revenues have reached €799m, marking a 28% increase over the previous year’s €625m.
Betting Technology sales rose 32% to €210m, driven by a 37% jump in Betting & Gaming Content sales to €162m (compared to €118m in Q3 2023).
The Sports Content, Technology & Services segment generated €45m, boosted by 10% growth in Marketing & Media Services.
The growth came from strong ad:s revenue in both Europe and North America, as sportsbooks ramped up marketing efforts. In the U.S., Sportradar’s revenue grew 46% to €51m, benefiting from cross-selling content and services to new partners.
The company saw a €21m net gain from US foreign currency fluctuations and reduced impact from past impairments.
Looking forward, Sportradar plans to revitalise its US media and content offerings with new assets acquired from XLMedia Plc for $30m.
Rest-of-the-World (RoW) sales increased 23% to €204m, with benefits from the expanded micro-markets for ATP tennis, adding 1,500 betting options per match as ad:s marketing service now includes paid search, improving reach to betting and gaming audiences.
In Q3, profit rose by €33m to reach €37m, with a profit margin of 14.5%. Adjusted EBITDA also increased by 30% to €66m, although this was partially offset by higher sports rights costs due to the ATP partnership.
Sportradar has also raised its 2024 outlook, now projecting revenue of at least €1.09bn (a 24% increase) and Adjusted EBITDA of at least €216m (a 29% increase), backed by a customer net retention rate of 126%.
Carsten Koerl, CEO of Sportradar, stated:”Our competitive advantages within the sports ecosystem, coupled with our growth-oriented strategy, is driving broad-based outperformance. We continue to deliver more value to our clients and partners, building shareholder value. We are at an important inflection point to drive operational leverage and cash generation, demonstrated by our expanding EBITDA margin and strong cash flow this past quarter.
The significant cash flow has further strengthened our balance sheet and we are deploying our capital to execute on our growth strategy while returning capital to shareholders. Additionally, we continue to show strong momentum in the US, which we expect to be further bolstered by the growth of in-game betting and with the start of the NBA and NHL seasons.”
