Sportradar has upped its 2024 financial outlook for the third successive quarter after delivering record Q3 figures.
In its financial results for the three months to 30 September 2024, Sportradar said betting and gaming content revenue and strong US market growth were the main drivers of success.
Revenue increased 27% year-over-year to €255.2 million, while adjusted EBITDA was up 30% to €65.8 million.
Sportradar now expects to achieve revenue growth of at least 24% to €1.09 billion and adjusted EBITDA growth of at least 29% to €216 million. In September, the group forecasted year-over-year growth of at least 21% in both revenue and in adjusted EBITDA.
Sportradar’s Betting Technology & Solutions division achieved growth of 32% to €210.1 million during the quarter. This was primarily driven by a 37% increase in betting and gaming content benefiting from existing and new customer uptake of products and premium pricing, as well as from strong US market growth.
Additionally, Managed Betting Services grew 18% year-over-year, mainly driven by strong growth in Managed Trading Services from higher trading margins and increased betting activity from existing and new customers.
The other division, Sports Content, Technology & Services, saw more modest gains of 8% to €45.1 million. This was primarily driven by 10% growth in Marketing & Media Services with strong growth in both European and North America ad:s service revenue.
Sportradar generated strong revenue growth globally with Rest of World up 23% and the US up 46%. As a percentage of total group revenues, the US revenue now represents 20% compared to 17% in the prior year quarter. This, it said, is due to market growth, additional customer uptake of products and premium pricing.
Revenue drives earnings hike
Profit for the period from continuing operations in the third quarter was at €37.1 million. This compared to just €5 million in Q3 2023 when Sportradar was hit by one-time losses related to impairment on goodwill and intangible assets. Profit was driven by strong operating results as well as €21 million in net foreign currency gains due to strengthening of the euro against the US dollar.
Revenue growth also aided adjusted EBITDA of €66 million, up 32% year-over-year. The growth was partially offset by increased sport rights costs primarily related to Sportradar’s ATP partnership deal as well as other outgoings.
Personnel expenses were up 16% to $88.0 million, while sports rights expenses grew by 75% to €63.0 million.
“Our competitive advantages within the sports ecosystem, coupled with our growth-oriented strategy, is driving broad-based outperformance,” Sportradar founder and chief executive Carsten Koerl said. “We are at an important inflection point to drive operational leverage and cash generation, demonstrated by our expanding EBITDA margin and strong cash flow generation this past quarter.
“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.”
Meanwhile, XLMedia has announced that shareholders have approved Sportradar’s acquisition of the affiliate group’s North American business.
A $30m deal was agreed in October 2024 with completion expected soon having now been passed by shareholders at the group’s general meeting. This brings the sports media giant into the affiliate space for the first time.
