Sportradar, the Switzerland-based sports technology company, has reported a profit of €37 million ($39.8 million) for the third quarter of 2023, as well as a 27% rise in year-on-year revenue.
This represents a significant profit rise year-on-year, with only a €4.6 million gain banked during Q3 of 2023.
Revenue during the three months to September 30 also rose year-on-year, the Swiss firm revealed yesterday, and during Q3 came to €255.1 million. The equivalent period in 2023 saw total revenue of €201 million, as a contrast.
However, Q3 also saw Sportradar’s financing costs rise by €14 million, following the completion of deals covering three top-tier sporting properties that were in effect for Q3 as opposed to the equivalent period last year - men’s tennis’ ATP, US basketball’s NBA, and German men’s soccer’s Bundesliga.
Sportradar unveiled a range of additional features and innovative products around its NBA partnership late last month.
In terms of the separate Sportradar divisions, its betting technology and solutions branch was responsible for €210 million of the total revenue, with the sports content, technology, and services segment bringing in the other €45.1 million. Both of these sectors saw their income rise year-on-year.
The betting and gaming content sector of the overall betting segment brought in the most revenue out of all Sportradar’s different divisions - €162.7 million, a 37% year-on-year increase.
Sportradar has put this sector's performance down to “existing and new customer uptake of our products and premium pricing, as well as from strong US market growth.”
Regionally, both te US (46%) and rest of world (23%) sectors saw strong year-on-year growth, meanwhile.
As a percentage of the firm’s total Q3 revenues, US activities brought in 20%, as opposed to 17% during the equivalent 2023 period.
The firm’s Q3 profit has been ascribed partly to the strong operating results listed above but also to €21 million of net foreign currency gains (as the euro has strengthened against the dollar) being factored in. It has also been noted that during Q3 last year, there were on-time losses of €15 million attributed, “related to impairment on goodwill and intangible assets.”
Third-quarter activity for Sportradar also included the extension of an exclusive betting rights deal with European soccer’s UEFA, as well as the addition of live sports betting and data content into its ad:s social marketing service.
In terms of the company’s Q3 adjusted EBITDA (earnings before interest, taxation, depreciation, and amortization), this figure has increased by 30% year-on-year, to €66 million.
The Sportradar full-year revenue guidance for 2024 has been revised, on the back of these results, and now features projected revenue growth of at least 24%, and adjusted EBITDA growth of at least 29%.
Carsten Koerl, Sportradar’s chief executive, has said in an accompaniment to the results: “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 …
“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.”
