Sportradar has published its financial results for the quarter ending September 30, 2024. Total revenue increased by 27% in Q3 to €255 million. Thus, compared to the same period last year, there was 32% growth in technology and betting solutions and 8% growth in sports content, technology and services.
Sportradar Presents Revenue Growth
US revenue increased by 46% to €51.1 million, followed by a 23% increase in the rest of the world to €204.1 million. As a result, the US was responsible for 20% of the company’s total revenue in the third quarter.
Profit saw a significant jump from 4.1 million euros in the 3rd quarter of 2023 to 37.1 million euros this year. Sportradar, in its report, explains it is due to a mix of strong operational results, such as:
- the strengthening of the euro against the US dollar
- 15 million euros of one-off losses from the previous year
These losses are related to the impairment of goodwill and intangible assets related to the impact of changes in business strategy and the sale of an investee accounted for in shares.
As for adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), it increased by 30.3%, reaching €65.8 million. It was balanced, as the increase in revenue came after:
- increased costs for sports rights
- investments in the development of the product portfolio
- increase in personnel expenses
Thus, the net customer retention rate also increased sequentially to a final value of 126%.
But it’s worth making it clear that, during the quarter, Sportradar repurchased around 721,000 shares for a total of US$8.3 million. So, the accumulated value for the year is 1.7 million shares repurchased for almost US$20 million
CEO Carsten Koerl Highlights EBITDA Margin Expansion
Carsten Koerl, CEO of Sportradar, said: “Our competitive advantages within the sports ecosystem, combined with our growth-oriented strategy, are driving broad-based outperformance. Therefore, we continually add more value to our customers and partners, creating value for shareholders.
“We are at an important inflection point to boost operational leverage and cash generation. This is clear from the expansion of the EBITDA margin and the strong cash flow in the last quarter. Significant cash flow has further strengthened our balance sheet. Therefore, we are deploying our capital to execute our growth strategy while returning capital to shareholders.”
“Additionally, we continue to show strong momentum in the U.S., which we expect will be further bolstered by the growth of in-game betting and the start of the NBA and NHL seasons.”
Recently, Sportradar announced that it would be expanding into the microbetting market through its partnership with Tennis Data Innovations.
