International sportstech firm Sportradar generated strong revenue and profit across the breadth of its partnerships and activities this quarter.
The St Gallen, Switzerland-headquartered business outlined revenue growth of 27% year-over-year in Q3, reaching €255m (Q3 2023: €201m).
This drove a substantial increase in profit of 62% from €5m to €37m, which the firm attributed primarily to ‘strong operating results’ coupled with net foreign currency gains of €21m due to the strengthening of the euro against the US dollar. EBITDA, meanwhile, rose 10% from €50m to €66m.
Carsten Koerl, CEO of Sportradar, said: “Our competitive advantages within the sports ecosystem, coupled with our growth-oriented strategy, is driving broad-based outperformance.”
On a product-by-product basis, revenue rose across all of the company’s business segments. Starting with its sports industry-focused segments, the Sports Content, Technology and Services saw revenue rise 8% from €41.8m to €45.1m.
The Sport Performance division experienced revenue growth of 2% from €9.9m to €10.1m, whilst the firm reports 12% growth for its Integrity Services unit from €1.8m to €2m – the company is a provider of integrity services to a range of prominent sports organisations such as the ATP, Asian Football Confederation (AFC) and Brazil Football Confederation.
Marketing and Media services revenue, meanwhile, rose 10% to €32.9m (€30m), though the performance of the group’s various sports media and technology divisions was dwarfed by the growth reported for its betting units.
The segment which generated the most significant sum of revenue for the group last quarter was its Betting Technology and Solutions division, with revenue rising 32% from €139.1m to €210m.
Betting and Gaming Content also enjoyed the sharpest overall percentage increase in revenue, rising by 37% to €162.7m (€118.9m). Lastly, Managed Betting Services revenue was up 18% to €48.2m (€40m).
Services to the betting and gaming industry have stood out over the years as one of Sportradar’s flagship products, with the company delivering data from its sports partners to various operators. Its activities also encompass media services for betting and increasingly advertising and marketing.
“We continue to deliver more value to our clients and partners, building shareholder value,” Koerl added. “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.”
Lastly, regarding geographies, the US remains Sportradar’s leading market, with revenue from the country rising 46% YoY to €51m (€35m). The emergence of a huge betting market in the country since 2018, with more states now hosting open betting markets than not, has likely contributed to this.
The general value of the US sports system, with Sportradar partnered with the likes of the world’s second most valuable sports league, the NBA, will also play a role. After the US, the Rest of the World segment – where Sportradar also maintains some prominent deals with the likes of UEFA – saw revenue rise 23% from €165m to €204m.
Post-quarter, Sportradar has raised its fiscal outlook for the rest of the year. The firm now expects to close 2024 with revenue of around €1bn, up 24% YoY, and adjusted EBITDA of at least €216m, up 29% YoY.
