Sportradar Group, a leading global technology company enabling next generation engagement in sports and provider of business-to-business solutions to the global sports betting industry, managed to swing to profit for the first time in its US sector thanks to the success of its deal with FanDuel.
generated revenue in the third quarter of 2022 €178.8m, up 31 per cent.
2022 year-to-date revenue grew 28 per cent compared to the same nine months in 2021.
The RoW Betting segment, accounting for 56 per cent of total revenue, and grew 28 per cent to €100.9m, driven by strong performance from our Managed Betting Services (MBS).
US segment revenue grew 61 per cent to €31.6m compared to the third quarter of 2021, driven by strong market growth and positive adoption of in-play betting. The US segment turned profitable for the first time since the company’s initial public offering and generated a positive Adjusted EBITDA margin of 11 per cent.
The company’s Adjusted EBITDA in the third quarter of 2022 increased 75 per cent to €36.5m compared with the third quarter of 2021 as a result of strong revenue growth even with continuous investments in the company’s growing business.
Adjusted EBITDA margin was 20 per cent in the third quarter of 2022, an increase of 500 bps compared to the quarter for the prior year period and 400 bps higher compared to the second quarter of 2022.
The company has raised its guidance for revenue and the lower end of its Adjusted EBITDA2 range for the full year 2022.
Carsten Koerl, Chief Executive Officer of Sportradar said: “Our strong performance in the third quarter exceeded our expectations across all key financial metrics. We consistently managed to grow revenue, profitability and cash flows despite adverse market conditions during the first three quarters of 2022. The Company exceeds expectations quarter-in and quarter-out, and as a result of our operational performance – in particular the U.S. and the betting rest-of-world business – as well as our organizational streamlining, we are able to raise our full year guidance for revenue and increase the lower end of our Adjusted EBITDA range.”
“We are proud of the continuous success of our US operations. We managed to generate a US profit for the first time in the third quarter, displaying solid operational leverage in the business model. Underpinning this success is the extension of our long-term partnership with FanDuel. This partnership is a testimony for our strategy, to expand our relationships and become an embedded technology provider for our customers, based on strategic long-term deals with our league partners.”
Ulrich Harmuth, Interim Chief Financial Officer added: “The financial results in the third quarter demonstrated that Sportradar consistently has managed to grow almost three times faster than the underlying betting market and our growing scale has led to margin expansion – as indicated by the U.S. segment turning profitable in the third quarter. As a result of this strong momentum and based on what we can see today, our 2023 preliminary expectations are for revenue to grow in the mid-20’s percent while expanding Adjusted EBITDA margin above 2022 levels.