Continued expansion leads Sportradar to 29.9% revenue increase in Q3
Adjusted EBITDA on the total quarterly revenue was €20.9m, up from €17.3m, giving an EBITDA margin of around 15% – down slightly from the 16% margin recorded in Q3 2020.
After expenses, including €29.4m in purchased services and licences, €51.3m in personnel expenses, €27.2m in depreciation and amortisation, and finance costs of €13.4m, the business was left with a net loss before tax of €6.0m, down from a €16.0m loss in Q3 2020.
After paying €3.0m in income tax, Sportradar declared a loss for the period of €9.0m – again down from its €15.0m net loss in Q3 2020.
For the year-to-date, Sportradar is in profit, having generated net earnings of €8.6m, on a total €408.8m of revenue. This puts net profit and revenue for the year-to-date 64.1% and 37.7% ahead of the same period last year, respectively.
Of its total revenue for the quarter, the majority, at €78.6m, was generated through betting services provided globally excluding the US. This represents a year-on-year growth rate of 24.4% for the segment.Audiovisual services excluding the US were the next largest segment for the business, bringing in €29.0m, up 14.6%, and the US represented the business’ fastest growing segment, generating €19.6m in revenue, up 119.2% from €8.9m in Q3 2020.
Sportradar said increased revenues from the US segment of its business were driven by growth in its US betting services and increased revenue from existing customers as the underlying market and turnover grew.
Among other US deals, Sportradar extended its partnership with FanDuel Group until 2028 during the quarter, to provide pre-match and live betting services, and betting entertainment tools.
It said it also experienced strong adoption of its ad:s marketing services product, growth in US media, and a positive impact from its acquisition of US college sports data and video analytics provider, Synergy Sports, in Q2 2021.For the full year 2021, the business said it expects revenue to fall between €553m and €555m, with adjusted EBITDA between €99.5m and €101.5m.
“We plan to continue to make significant investments, particularly in the US,” commented Sportradar’s chief executive, Carsten Koerl.
“The US represents the primary area of focus to execute on our strategic growth plans, as the US region is currently only 7 percent of our group revenues, representing a significant potential business opportunity as more states legalise 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,” Koerl concluded.