Sportradar Reports 27% Revenue Growth in Q3 2024

Sportradar’s Q3 2024 Financial Performance

In Q3 2024, Sportradar generated €255.2 million in revenue, a 27% increase from €201 million in the same quarter last year. This growth was driven by a 32% increase in the Betting Technology & Solutions segment and an 8% increase in the Sports Content, Technology & Services segment.

The Betting Technology & Solutions segment achieved €210 million in revenue, a 32% increase from the prior year. This growth was primarily due to a 37% increase in Betting & Gaming Content, supported by increased demand from both existing and new clients, as well as higher pricing. Managed Betting Services grew by 18% year-over-year, driven by higher trading margins and increased activity among betting customers.

Sports Content, Technology & Services saw €45 million in revenue, up 8% year-over-year. This was primarily fueled by a 10% rise in Marketing & Media Services, with strong advertising revenue growth in both Europe and North America as multiple sportsbooks launched marketing campaigns.

Sportradar reported a net profit from continuing operations of €37 million, up from €5 million in the previous year. This improvement was attributed to strong operational performance and €21 million in net foreign exchange gains due to the strengthening euro against the U.S. dollar, offsetting prior one-time impairment losses.

Adjusted EBITDA rose to €66 million, an increase of €15 million from Q3 2023. This growth was primarily driven by the revenue increase, offset partially by rising sports rights costs related to partnerships with the ATP and higher personnel expenses linked to company expansion.

Sportradar generated strong net operating cash flow, increasing by 55% to €118 million. Cash and cash equivalents were €368 million at the end of Q3 2024, up from €277 million at year-end 2023.

Importance of the U.S. Market

The U.S. market is becoming more important for Sportradar, accounting for around 20% of total revenue and 46% growth year-over-year. This makes the U.S. one of Sportradar’s fastest growing markets.

The company believes that in-play betting will be a key growth driver in the U.S. market where Sportradar has agreements with the NBA and NHL. The start of these leagues’ seasons will further boost Sportradar’s U.S. revenue.

Sportradar is also in talks with MLB to extend its contract, to keep a strong presence in the U.S. baseball market.