Sports technology provider Sportradar has revealed the financial results for the quarter ending on September 2023. In its report, the Switzerland-based tech group noted that the revenue in Q3 increased by 12% to €201.0 million ($212.1 million) when compared to the same period last year, driven by growth across all segments.
Despite the revenue increase, total profit from continuing operations decreased by 63.8% to €4.6 million ($4.8 million), down from €12.8 million ($13.5 million) in the same quarter last year. The company’s Adjusted EBITDA increased 38% to €50.5 million ($53.3 million) compared with the third quarter of 2022, primarily due to strong revenue growth and higher operating leverage.
Year-to-date, group revenue reached €625 million ($658 million) in the first nine months of the year, up 16% from the same-period 2022 figure of €529.9 million ($557 million), with adjusted EBITDA up 28% to €127.3 million ($133.8 million).
Carsten Koerl, Chief Executive Officer of Sportradar, said: “As the leader in our industry, we aim to consistently deliver value to our clients, partners and shareholders. For 2023 we remain on track to deliver a strong growth year and are well-positioned to maintain that momentum into 2024.”
Along with the Q3 results, the company announced a reduction in its global workforce as part of “a broader set of strategic initiatives” that the company hopes will enable it to strengthen its organization and focus on market opportunities ahead of it.
Sportradar records growth in all segments
The company recorded growth across its business and core geographic sectors during Q3, including Rest of World (RoW) Betting, RoW Audiovisual (AV), and the US.
The RoW Betting segment revenue increased by 11% from €100 million ($105 million) to €112.2 million ($118.2 million) and EBITDA grew by 16% from €48.2 million ($50.8 million) to €56.1 million ($59.1 million). As per Sportradar, the increase in sales was mainly due to its live odds and live data products, which grew 18% year-on-year.
RoW AV revenue was €38 million ($40 million) at the close of Q3, a 15% increase from corresponding 2022 income of €33.1 million ($34.9 million), and EBITDA for the segment increased 5% to €13.3 million ($14 million), which the company said was driven by a new deal with South American football body CONMEBOL and increased sales to both its new and existing customers.
Sportradar’s US revenue amounted to €33 million ($34.8 million), up 11% Y-O-Y. The EBITDA for the segment went up 58% from €3.5 million ($3.7 million) to €8.2 million ($8.6 million), which as per Sportradar was attributed to the growth for its betting and gaming and audiovisual products in the country.
Q3 partnerships and highlights
During the quarter, Sportradar expanded its BetMGM partnership to include official NBA data. The company will, for the first time, provide the operator with products and services that leverage NBA optical tracking data as a result of its exclusive agreement with the NBA. This will enable BetMGM to grow its prop markets, same-game parlays, as well as the in-play betting market.
The company’s recent highlights also include Sportradar announcing a four-year extension with NASCAR of the company’s long-term media rights partnership with the league, which now includes official betting data. This agreement will include live timing and scoring data and expanded betting content.
Sportradar has also been selected by the Taiwan Sports Lottery Company to power its Sports Lottery with a customized omnichannel sportsbook and player management solution.