Global sports technology company Sportradar has further raised its FY24 outlook after seeing a significant increase in profits, driven by strong revenue and adjusted EBITDA rises in the third quarter.
According to results released on Thursday, the group generated a profit of €37 million (nearly $40 million) during the quarter, up from just €5 million ($5.4 million) in 3Q23.
Revenue was up by 27 percent yearly to €255.17 million ($275 million), with revenue from its Betting & Gaming Content segment up by 27 percent, to €162.77 million ($175.4 million).
The group noted that the segment benefited ‘from existing and new customer uptake of our products and premium pricing, as well as from the strong US growth market’.
Managed betting services revenue was up 18 percent, to €47.29 million ($51 million), contributing to a rise in Betting Technology & Solutions segment revenue of 32 percent yearly, to €210.06 million ($226.4 million).
Sports Content, Technology & Services brought in some €45 million ($48.5 million), up 8 percent yearly, with its strongest contributor being Marketing & Media Services, up by 10 percent yearly, to €32.94 million ($35.5 million) ‘with strong growth in both European and North America ads revenue as several sportsbooks launched marketing campaigns’.
The group’s revenue continued to be concentrated outside of the United States, with the Rest of the World contributing €204.07 million ($219.9 million) – a yearly increase of 23 percent.
The US market saw strong growth, however, up 46 percent yearly, to €51.09 million ($55 million). The group increased its share of total company revenue from the US market to 20 percent, from 17 percent in the same quarter of last year.
Adjusted EBITDA group-wide rose by €15 million ($16.17 million), to €66 million ($71.1 million), due to the growth in revenue but offset by increased sport rights costs ‘primarily related to the ATP partnership deal, higher purchased services driven by investments in developing our product portfolio, increased personnel expenses due to headcount growth and a higher bonus accrual in the current year’.
Looking at the annual outlook, the group is projecting a 24 percent yearly rise in revenue, to ‘at least’ €1.09 billion ($1.17 billion), with adjusted EBITDA expected to rise 29 percent yearly, to €216 million ($232.8 million).
