Sportradar AG has received a strong commercial boost and could reach revenues of over €1 billion after its IPO.
In its third-quarter report, Sportradar reported revenue growth of 27% to €255 million (€201 million in Q3 2023). Year-to-date, revenue has reached €799 million, up 28% year-on-year (€625 million).
Bookmaker technology sales increased by 32% to €210 million, driven by a 37% increase in bookmaker and gaming content sales to €162 million (compared to €118 million in Q3 2023).
The Sports Content, Technology and Services segment generated €45 million, driven by a 10% increase in Marketing and Media Services.
Growth was driven by strong advertising revenue in both Europe and North America as bookmakers ramped up their marketing efforts. In the US, Sportradar’s revenue rose 46% to €51 million, driven by cross-selling content and services to new partners. The company made a net gain of €21 million from US currency fluctuations and reversing the impact of previous impairments.
Looking ahead, Sportradar plans to reinvigorate its media and content offering in the US with new assets acquired from XLMedia Plc for €30 million.
Rest of the World (RoW) sales rose 23% to €204 million, driven by the benefits of expanded micro markets for ATP tennis, adding 1,500 betting options per match as the advertising marketing service now includes paid search, improving betting and gaming reach.
In the third quarter, profits rose by €33 million to €37 million, with a profit margin of 14.5%. Adjusted EBITDA also rose by 30% to €66 million, although this was partially offset by higher sports rights costs due to the ATP partnership.
Sportradar also raised its 2024 outlook, now forecasting revenue of at least €1.09 billion (up 24%) and adjusted EBITDA of at least €216 million (up 29%), supported by a net customer 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.”
Don’t forget to subscribe to our Telegram channel!
