Sportradar has seen its US revenue spike by 46% year on year (YoY) in Q3, with the region now representing 20% of total company revenue.
Total revenue during the third quarter increased 27% YoY to €255m (£211.9m) on the back of a 32% YoY increase in revenue from its betting technology and solutions arm, and an 8% increase in sports content, technology and services.
On the back of the Q3 performance, Sportradar’s stock has leapt by more than 12% to $14.20.
The betting technology and solutions’ revenue of €210.1m was down to a 37% increase in betting and gaming content revenue, with the supplier noting this is due to “existing and new customer uptake of our products and premium pricing” as well as strong US market growth.
Sports content, technology and services revenue of €45.1m was driven by 10% growth in marketing and media services after several sportsbook in both Europe and North America launched new marketing campaigns.
Adjusted EBITDA also spiked by double figures, 30% YoY, to €66m with an adjusted EBITDA margin expanded to 26%.
However, this was partially offset by a rise in sports rights costs related to the ATP partnership deal, and personal expenses stemming from increased headcount and bonus accrual, as well as “higher purchased services driven by investments in developing our product portfolio”.
Breaking performance down geographically, US revenue rose from €35.1m to €51.1m, with revenue for the Rest of the World (RoW) at €204.1m for Q3 – a 23% YoY jump.
Sports right costs for the quarter amounted to €63m, up from €35.5m the year prior, while there was also an increase in purchased services with the figure rising from €36.1m to €42.8m.
Sportradar also announced it was further raising its fiscal 2024 outlook for revenue to €1.09bn, up from €1.07bn, while its new adjusted EBITDA figure is €216m – up from the previous figure of €204m.
Carsten Koerl, Sportradar CEO, said: “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.
“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.”
During the quarter, the supplier repurchased approximately 721,000 shares for a total of $8.3m, after the board of directors approved a $200m share repurchase programme in March.
As of November 1, Sportradar has repurchased a total of 1.7 million shares for approximately $20m.
The Q3 results were released on the same day that XLMedia’s shareholders backed Sportradar’s $30m acquisition of the affiliate’s North America-facing assets.
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