Sportradar reported strong growth and improved profitability in the third quarter, with revenue up 31%.
The company’s U.S. sports data revenue was 31.6 million euros ($32.8 million), up 61% from last year. According to Sportradar, this is due to strong market growth and the active introduction of in-game betting. The US segment also became profitable for the first time since its initial public offering (IPO) last September.
Earnings before interest, taxes, depreciation and amortization (EBITDA) of 3.4 million euros (3.5 million US dollars) compared to a loss of 6.6 million euros (6.9 million US dollars) in the third quarter of 2021 of the year.
The Rest of the World (RoW) segment, which accounts for 56% of total revenue, grew 28% year-on-year to €100.9 million ($104.8 million) driven by the strong performance of Sportradar’s managed betting services. Sportradar’s third-quarter adjusted EBITDA increased 75% year-on-year to €36.5 million ($37.9 million).
The Rest of the World (RoW) segment, which accounts for 56% of total revenue, grew 28% year-on-year to €100.9 million ($104.8 million) driven by the strong performance of Sportradar’s managed betting services. Sportradar’s third-quarter adjusted EBITDA increased 75% year-on-year to €36.5 million ($37.9 million).
In the third quarter, Sportradar paid off a €200 million (US$208 million) debt ahead of schedule. As at 30 September 2022, total liabilities were €236.9 million ($246 million).
Adjusted EBITDA guidance has been narrowed to a range of €124m ($129m) to €127m ($132m) from the previous range of €123m ($128m) to €133m ($138m). USD million), representing an increase of 22-24% over the previous year.
Shares of Sportradar jumped more than 20% in first trade on the Nasdaq on Nov. 16 to $12.29 a share. Karsten Koerl, CEO of Sportradar, commented on this growth: «Our strong performance in the third quarter exceeded our expectations across all key financial metrics. We consistently managed to grow revenue, profitability and cash flows despite adverse market conditions during the first three quarters of 2022.
We are proud of the continuous success of our US operations. We managed to generate a US profit for the first time in the third quarter, displaying solid operational leverage in the business model. Underpinning this success is the extension of our long-term partnership with FanDuel. This partnership is a testimony for our strategy, to expand our relationships and become an embedded technology provider for our customers, based on strategic long-term deals with our league partners.»
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