Sportradar US revenue jumps 61%, leading to significant share price spike
Positive results see data giant post positive EBITDA in the US for the first time as market reacts positively to results
Sportradar has reported a 31% year-on-year (YoY) increase in its revenue for Q3 2022 to €178.8m (£156.5m).
At an operational level, the rest of the world betting segment remained Sportradar’s main source of income, with the arm generating €100.9m in revenue, up 28% YoY. This was mainly driven by the strong performance of its managed betting services.
The US segment grew significantly as revenue increased by 61% to €31.6m, mainly driven by strong market growth and positive adoption of in-play betting.
This was the first time the US arm turned a profit since the company’s IPO, with adjusted EBITA jumping to €3.4m from Q3 2021’s loss of €6.6m, along with a positive EBITDA margin of 11%.
Elsewhere, the data giant recorded group adjusted EBITDA for the third quarter of €36.5m, a rise of 75% compared to the results recorded in 2021.
These positive results have led to Sportradar’s share price rocketing up 15.37% at the time of writing to $11.71.
Sportradar noted its key achievements for the quarter, which saw the firm sign a long-term agreement with FanDuel for official NBA data rights until the end of the 2030-31 season.
The company also reaffirmed its leadership position in the cricket market with partnerships with Australian Premier Cricket competitions. Sportradar also entered into an integrity agreement with the International Golf Federation.
Regarding expenditure, Sportradar paid €68.3m in personnel expenses as staff costs increased by 27% YoY. Other costs included €31.8m in depreciation and amortisation costs and €20.3m in other operating expenses.
After paying €1.9m in tax, the company reported €12.8m in profit, compared to a €9m loss in Q3 2021.
CEO Carsten Koerl stated that the firm’s overall performance had exceeded expectations.
He said: “Our strong performance in the third quarter exceeded our expectations across all key financial metrics.
“We consistently managed to grow revenue, profitability and cash flows despite adverse market conditions during the first three quarters of 2022.”
Following the results, Sportradar increased its revenue outlook for 2022. Previous expectations put full-year revenue between €695.0m and €715m; it now projects full-year revenue of between €718m and €723m.
The firm also updated its EBITDA guidance, previously predicting it to fall between €123m and €133m. The data giant has now narrowed the margin between €124m and €127m.