Sportradar AG has underlined its position as the world’s leading sports tech and data group, having published its inaugural results as a Global Nasdaq enterprise.
The Swiss group, which made its listing debut last September after securing a target valuation of $8 billion, registered Q3 revenues of €137 million – up 30% on the €105 million from Q3 2020.
Global betting’s newest Nasdaq debutant stated that robust growth had been achieved “across all geographies and business segments”, with US market activities leading the commercial growth.
“US revenue in the third quarter of 2021 increasing by 119% compared to the third quarter of 2020. For the nine months ended September 30, 2021 the U.S. revenue reached €48.5 million,” it disclosed.
Providing a breakdown of business segments, Sportradar reported that RoW Betting had generated a 24% increase in revenues to €79 million – attributed to client uptake of its Managed Betting (+63%) and Live Odds (+20%) services.
RoW Betting registered a 36% increase in EBITDA to €45 million, as the company cited improved product margin gains, combined with new client wins.
Founder and CEO Carsten Koerl said: “Our strong results demonstrate the value we provide to our partners and customers around the world. We are the largest provider of sports intelligence in the world and the only profitable global sports technology platform of scale.
“Critically, we believe we are also the most innovative in developing technology solutions that enable our league customers, media and betting partners to use our ever-increasing data to attract and engage sports fans.”
Despite tough comparatives, Sportradar live content delivered a 13% revenue increase in RoW AV activities to €29 million, as growth was dragged by COVID-19 related issues, with more sporting events hosted during Q3 2020.
The group’s new US activities (betting + AV) registered a 119% increase in Q3 revenues to €20 million, primarily attributed to a growing demand in US-specific betting services. The increase in North American business services saw Sportradar reduce its US segment EBITDA losses by 24% to €6.6 million.
It stated that its US commercial portfolio would be significantly improved by the addition of ad:s product and the integration of Synergy Sports.
A transformative Q3 period carried several operational expenses as management costs increased to €51 million due to “additional hires to strengthen new business lines” and Sportradar initiating stock-based compensations.
Of note, Sportradar accounts detailed that the company had spent approximately €25 million in Nasdaq and M&A related costs during the trading period.
Accounting for total IPO costs of €5.7 million, Sportradar declared an adjusted EBITDA outcome of € 21 million.
Updating its 2021 forecasts, the company projects that full-year revenues will be maintained at €553-to-555 million, representing +36% growth, combined with an adjusted EBITDA range of €99 to €101.5 million (+30%).
Following its successful Nasdaq listing, Sportradar has increased its primary net funds by €546 million, providing the company with €878 million to accelerate its business strategy prioritising rapid US growth.
Koerl added: “We plan to continue to make significant investments, particularly in the U.S. The U.S. represents the primary area of focus to execute on our strategic growth plans, as the U.S. region is currently only 7 percent of our group revenues, representing a significant potential business opportunity as more states legalize betting and the market expands from $1 billion in 2019 to an estimated $23 billion in the next 10 years.
“Our recent Nasdaq listing in the U.S. was a tremendous milestone for our team, and we look forward to building on our success in a multitude of areas in the years ahead.”