Sportradar AG has detailed growth across its three core revenue segments during the third quarter of the year, prompting the firm to update its financial projections for the end of the year.
Updating its Global Nasdaq investors, the sportstech and data company reported Q3 revenue growth of 12% from €178m in 2022 to €201m this year, with EBITDA also growing 38% from €36.5m to €50.5m alongside a margin of 25% (Q3 2022: 20%).
Although profit did take a hit, falling 64% to €4.6m (€12.8m), Sportradar is confident of continuing momentum into the fourth quarter of the year and into 2024, bolstered by a range of new partnerships including three prominent US deals.
At the close of September, Sportradar’s group-wide revenue for the first nine months of 2023 stood at €625m, representing growth of 16% against YTD 2022 (€529.9m), with adjusted EBITDA up 28% to €127.3m (€90.7m) accompanied by an increased margin of 20% (17%).
Based on this performance Sportradar projects full year revenue of between €870m-€880m and adjusted EBITDA of between €162m-€167m, representing YoY growth of between 19-21% and 29-33% respectively, with an anticipated EBITDA margin of 18.4-19.2%.
Carsten Koerl, Sportradar CEO, said: “As the leader in our industry, we aim to consistently deliver value to our clients, partners and shareholders. For 2023 we remain on track to deliver a strong growth year and are well positioned to maintain that momentum into 2024.”
Analysing Sportradar’s three geographic and operational segments – Rest of World (RoW) Betting, RoW Audiovisual (AV) and the US – the latter saw revenue rise 11% year-on-year from €31.5m to €33m.
This was accompanied by EBITDA up 58% from €3.5m to €8.2m, with the firm attributing both revenue and EBITDA to stateside growth for its betting and gaming and audiovisual products.
The continually expanding US sports betting market has been a focal point for Sportradar in recent years – Maine will be the latest state to go legal this Friday – and the firm has been trading on the New York Nasdaq since 2021.
Post-quarterly developments have seen Sportradar ink three agreements in the US, boosting the firm’s confidence in continuing momentum both in North America and globally.
These deals include an NBA data deal with BetMGM – the third biggest online operator in the US by market share – and a four-year renewal of its media rights partnership with NASCAR, as well as an agreement with the Tennis Network to support the network’s direct-to-consumer (DTC) streaming platform.
In addition to the US, the RoW Betting segment’s revenue increased 11% from €100m to €112.2m and EBITDA by 16% from €48.2m to €56.1m. The group attributed this primarily to increased sales of its live odds and live data products, which grew 18% year-on-year.
RoW AV revenue, meanwhile, reached €38m at the close of Q3, a 15% increase on corresponding 2022 income of €33.1m, whilst EBITDA rose 5% to €13.3m (€12.6m), driven by Sportradar’s deal with South American football body CONMEBOL and increased sales to both its new and existing customers.
On a broader geographic scale, Sportradar’s position in Asia was strengthened when it was selected to join a consortium operating the Taiwan Sports Lottery, powering the Taiwan Sports Lottery Company’s sportsbook using its ORAKO platform.
Lastly, aiming to streamline its business, Sportradar initiated a reduction of its global workforce this week ‘as part of a broader set of strategic initiatives’, which the firm expects will cut 2023 labour costs by 10%.
Koerl explained: “This week we announced a reduction in our global workforce as part of a broader set of strategic initiatives that will enable us to further strengthen our client-centric organisation and focus on the market opportunities ahead of us.”
