Sportradar has upped its 2024 financial outlook for the third successive quarter after delivering record Q3 figures, which was driven by 32% growth in betting technology and solutions, and 8% growth in sports content, technology & services.
Revenue increased 27% year-over-year to €255.2m, while adjusted EBITDA was up 30% to €65.8m.
Sportradar now expects to achieve revenue growth of at least 24% to €1.09bn, and Adjusted EBITDA growth of at least 29% to €216m. In September, the group forecasted year-over-year growth of at least 21% in both revenue and in adjusted EBITDA.
The company generated strong revenue growth globally with Rest of World (ROW) up 23% and the US up 46%. As a percentage of total group revenues, the US revenue now represents 20% compared to 17% in the prior year quarter. This, it said, is due to market growth, additional customer uptake of products and premium pricing.
”Our competitive advantages within the sports ecosystem, coupled with our growth-oriented strategy, is driving broad-based outperformance. We continue to deliver more value to our clients and partners, building shareholder value. We are at an important inflection point to drive operational leverage and cash generation, demonstrated by our expanding EBITDA margin and strong cash flow this past quarter,” Sportradar CEO Carsten Koerl commented.
“The significant cash flow has further strengthened our balance sheet and we are deploying our capital to execute on 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-game 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 industries continues to drive performance. Our diverse product portfolio and sports content are in demand from clients globally, and we are producing broad-based revenue growth across all product groups. Performance in the US is particularly strong as we continued to outpace the market, growing 46% year on year and representing 20% of our revenues in the quarter.”
“Thanks to the strong foundation of Sportradar’s business, with nearly all major sports content secured for the long-term, we are at an inflection point which will allow us to drive strong multi-year revenue growth, deliver operating margin expansion, generate significant cash flow, and build additional shareholder value,” he added.
"We have a long runway ahead – we will continue to drive topline growth through product innovation and development, generating value from our content portfolio and the expansion of our addressable market both in the US and around the world. At the same time, we will remain focused on operating efficiently and converting more and more of each dollar into Adjusted EBITDA and free cash flow,” Felenstein concluded.
Source: GMB
