Sportradar Group AG has announced its financial results for the third quarter of 2021, declaring a surge in revenue and a strong US market performance.
The group’s revenue for the quarter, ending September 30, improved by 30% to $158.7m compared to Q3 2020’s $119.1m.
Adjusted EBITDA in Q3 was up 21% to $24.2m (Q3 2020: $20.1m), while adjusted EBITDA margin stood at 15%, a slight decrease YoY (Q3 2020: 16%) due to additional IPO costs of approximately $6.4m which were incurred in Q3 2021. Eliminating the impact of IPO costs sees an adjusted EBITDA margin of 20%.
CEO Carsten Koerl commented: “Our strong results demonstrate the value we provide to our partners and customers around the world. We are the largest provider of sports intelligence in the world and the only profitable global sports technology platform of scale.
“Critically, we believe we are also the most innovative in developing technology solutions that enable our league customers, media and betting partners to use our ever-increasing data to attract and engage sports fans.”
Stateside, Sportradar’s revenue grew by 119% to $22.1m compared to $10.1m in Q3 2020. The firm says its revenue improvement was driven by growth in its US betting services and increased revenue from its customers as the underlying market and turnover grew.
The company also reported a strong adoption of its ad:s product, growth in US media, and a positive impact from its acquisition of Synergy Sports in Q2 2021. During Q3, it also extended its partnership with FanDuel until 2028.
For the nine months ended September 30, the US revenue reached $56.3m (2020: $25.2m).
Koerl noted that the US represents a ‘primary area of focus’ in Sportradar’s growth plans as it harbors significant growth opportunities.
The CEO stated: “We plan to continue to make significant investments, particularly in the US. The US represents the primary area of focus to execute on our strategic growth plans, as the US region is currently only 7% of our group revenues, representing a significant potential business opportunity as more states legalize betting and the market expands from $1bn in 2019 to an estimated $23bn in the next 10 years.
“Our recent Nasdaq listing in the US was a tremendous milestone for our team, and we look forward to building on our success in a multitude of areas in the years ahead.”
During Q3, Sportradar also completed a successful listing on Nasdaq, raising $618m of primary net proceeds to fund continued growth in the business, providing the company with $993m to continue to invest in global growth
For the full-year 2021, the firm expects revenue to be in the range of $641m to $644m and adjusted EBITDA in the range of $115.4m to $117.7m.