Sports technology company Sportradar has shared its financial results for the third quarter of the year. For the period ended September 30, the business delivered a 31% revenue increase to €178.8 million ($175.2 million) compared to Q3 2021. Year-to-date revenue for the year has grown by 28% when paired against the same nine months in 2021.
The US segment posted revenue increased 61% year-over-year, achieving first-time profitability in the third quarter; while the Rest of World Betting business drove strong organic growth and a high Adjusted EBITDA margin. As a result, the company has now raised guidance for revenue and narrowed the Adjusted EBITDA range for the full year of 2022.
“Our strong performance in the third quarter exceeded our expectations across all key financial metrics,” said Carsten Koerl, Chief Executive Officer of Sportradar. “We consistently managed to grow revenue, profitability and cash flows despite adverse market conditions during the first three quarters of 2022.”
“The company exceeds expectations quarter-in and quarter-out, and as a result of our operational performance – in particular the U.S. and the betting rest-of-world business – as well as our organizational streamlining, we are able to raise our full-year guidance for revenue and increase the lower end of our Adjusted EBITDA range,” he added.
The revenue outlook has now been raised to a range of €718 million to €723 million ($703.6 million to $708.5 million), from its previous range of €695 million to €715 million, representing prospective growth of 28% to 29%. The outlook for Adjusted EBITDA has been narrowed to a range of €124 million to €127 million ($121.5 million to $124.5 million) from the previous range of €123 million to €133 million, representing 22% to 24% growth.
The Rest of the World Betting segment accounted for the lion’s share of total revenue at 56%, growing 28% to €100.9 million ($98.9 million), driven by a strong performance from the Managed Betting Services (MBS). Meanwhile, the U.S. segment revenue grew 61% to €31.6 million ($31.0 million) compared to the third quarter of 2021, “driven by strong market growth and positive adoption of in-play betting.”
“We are proud of the continuous success of our U.S. operations. We managed to generate a U.S. profit for the first time in the third quarter, displaying solid operational leverage in the business model,” noted Koerl.
“Underpinning this success is the extension of our long-term partnership with FanDuel. This partnership is a testimony to our strategy, to expand our relationships and become an embedded technology provider for our customers, based on strategic long-term deals with our league partners,” the CEO commented.
Sportradar at G2E 2022
During the quarter, both parties signed a long-term agreement for Official NBA data through the 2030-31 season. Providing the sportsbook with a comprehensive portfolio of betting products and entertainment tools, “Sportradar remains the preferred data and odds supplier to FanDuel through 2031,” said the company.
The companies will collaborate to enhance the sports betting experience with new offerings such as certain player tracking data to create props and same game parlays. Additionally, FanDuel will use Sportradar’s proprietary Live Channel Trading (LCT) product.
“The financial results in the third quarter demonstrated that Sportradar consistently has managed to grow almost three times faster than the underlying betting market and our growing scale has led to margin expansion – as indicated by the U.S. segment turning profitable in the third quarter,” added Ulrich Harmuth, Interim Chief Financial Officer.