Leading sports technology company, Sportradar reported a robust third quarter, with revenue rising 31% year-over-year to $185.6 million.
Sportradar’s US segment also grew 61% year-over-year to $32.8 million. This segment was driven by strong market growth and in-game gambling in the US.
Carsten Koerl, chief executive of Sportradar 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.”
US gambling assets including FanDuel driving growth for Sportradar
Koerl said he is proud of the continued success Sportradar has enjoyed in the US. Specifically, he referenced the company’s partnership with FanDuel.
“We managed to generate a US profit for the first time in the third quarter, displaying solid operational leverage in the business model. 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.”
In October, Sportradar and online gambling operator FanDuel announced a new partnership for official NBA data through the end of the 2030-31 season. The company will supply FanDuel with official NBA data and supplementary betting services for its sportsbook platform.
For Sportradar, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the US was $3.5 million. Compared with a loss of $6.9 million in Q3 of 2021.
Sportradar raised its revenue outlook heading into Q4
The company’s international segment accounted for 56% of total revenue. That showed a growth of 28% year-over-year to $104.8 million.
Total EBITDA in Q3 jumped 75% year-over-year to $37.9 million. And with an adjusted free cash flow of $35.2 million compared to $34.2 million the year prior.
The positive results in Q3 have Sportradar raising its revenue outlook for the fiscal year. Koerl said:
“The company exceeds expectations quarter-in and quarter-out and as a result of our operational performance – in particular the US 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.”
Sportradar raised its revenue outlook for the fiscal year which was between $719 million and $742 million. The new range is now between $746 million and $751 million.
This represents future growth of 28 percent to 29 percent over fiscal 2021.