Sportradar published its financial results for the three months ending September 30, 2024, with total revenue increasing by 27% year-over-year, reaching €255.2 million for the period, while adjusted EBITDA grew by 30% to €65.8 million. The company stated that the outcome of betting content and gaming and the strong push from the US market were the main factors for success.
Sportradar increased its financial outlook for 2024 for the third consecutive quarter after delivering record numbers for Q3, which were driven by a 32% growth in betting technology and solutions and an 8% increase in sports content, technology, and services.
Revenue increased 27% year-over-year to €255.2 million, while adjusted EBITDA rose 30% to €65.8 million.
Sportradar now expects to achieve revenue growth of at least 24% to €1.09 billion and an adjusted EBITDA growth of at least 29% to €216 million. In September, the group forecasted a year-over-year growth of at least 21% in both revenue and adjusted EBITDA.
The company generated strong revenue growth globally with the Rest of the World (ROW) rising 23% and the US up 46%. As a percentage of the group's total revenues, US revenue now accounts for 20% compared to 17% in the same quarter of the previous year. This, it said, is due to market growth, additional product uptake by customers, and premium pricing.
"Our competitive advantages within the sports ecosystem, along with our growth-oriented strategy, are driving superior broad-based performance. We continue to deliver more value to our customers and partners, building value for shareholders,” commented Sportradar CEO, Carsten Koerl.
“We are at a significant inflection point to drive operational leverage and cash generation, demonstrated by our expanding EBITDA margin and strong cash flow in the last quarter," he stated.
"The significant cash flow further strengthened our balance sheet and we are deploying our capital to execute our growth strategy while returning capital to shareholders. Additionally, we continue to show strong momentum in the US, which we expect to be further bolstered by the growth of in-play betting and with the start of the NBA and NHL seasons".
Chief Financial Officer (CFO), Craig Felenstein, also explained the positive results of the company. "Sportradar's unique position at the intersection of the sports, media, and betting sectors continues to drive performance. Our diverse portfolio of products and sports content are sought after by clients globally, and we are producing broad revenue growth across all product groups.”
“The performance in the US is particularly strong, as we continue to outperform the market, growing 46% year-over-year and representing 20% of our revenues in the quarter”.
“Thanks to Sportradar's solid business foundation, with almost all major sports content secured for the long term, we are at an inflection point that will enable us to drive strong multi-year revenue growth, deliver operational margin expansion, generate significant cash flow, and build additional value for shareholders,” he added.
“We have a long road ahead – we will continue to drive revenue growth through innovation and product development, generating value from our content portfolio and expanding our addressable market in the US and around the world. At the same time, we will remain focused on operating efficiently and converting increasingly more of each dollar into adjusted EBITDA and free cash flow,” concluded Felenstein.
Source: GMB
