Sportradar, the sports technology company, posted a 12% revenue increase in the third quarter (Q3) of 2023 but profit was down again, for the third consecutive quarterly period.
The company yesterday (November 1) announced its results for the three months up to September 30 and revealed that Q3 profit decreased by 68% from €12.8 million ($13.6 million) last year to €4.6 million.
For the quarter, Sportradar generated revenue of €201 million.
Of the revenue brought in, its Rest of the World Betting segment accounted for €112.2 million, which was up 11% compared with the third quarter of 2022.
This was driven primarily by increased sales of the company’s Live Odds and Live Data products, which grew 18% year over year (YoY).
Meanwhile, the Rest of the World Betting Audiovisual segment brought in €38 million, a 15% increase from the prior year. This was attributed to the new deal with Conmebol, South American soccer’s governing body, and growth in sales to new and existing customers.
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Sportradar secured exclusive global audio and video (AV) and betting data rights to Conmebol club competitions for the next four seasons, in July.
Adjusted earnings before interest, taxation, depreciation, and amortization (EBITDA) increased 38% to €50.5 million.
During the quarterly period, the sports data intelligence and digital services provider also extended its partnership with BetMGM for official NBA data and renewed its media rights partnership with Nascar, which now includes official betting data.
In addition, Tennis Channel, the US network dedicated to the sport, hired Sportradar to launch a new direct-to-consumer streaming platform early next year.
This week Sportradar also announced a reduction in its global workforce as part of a “broader set of strategic initiatives.”
Carsten Koerl, Sportradar chief executive said: “As the leader in our industry, we aim to consistently deliver value to our clients, partners, and shareholders.
“For 2023 we remain on track to deliver a strong growth year and are well-positioned to maintain that momentum into 2024.
“This week we announced a reduction in our global workforce as part of a broader set of strategic initiatives that will enable us to further strengthen our client-centric organization and focus on the market opportunities ahead of us.”
For Q2, Sportradar posted revenue of €216.4 million, while profit decreased by €22.8 million. In the first quarter, revenue came in at €207.6 million and profit dropped to €6.8 million.
In terms of its annual financial outlook for 2023, Sportradar expects revenue to be between €870 million and €880 million, representing YoY growth between 19% and 21%.
Adjusted EBITDA, meanwhile, is forecast to be between €162 million and €167 million.