- Sports betting data provider Sportradar has set a €1 Billion revenue target for 2024.
- Sportradar was even profitable in the dysfunctional US market during 2023, with an EBITDA profitability of €19m.
- 2023 was the third straight year of double digit revenue growth.
With the exception of legacy casino companies, state lotteries and the cronies/financial benefactors of politicians there hasn’t been many winners in the flatlining US sports betting market. A long time ago I suggested that one segment with the potential to make money in the US was sports betting data providers. As is usually the case, my prediction came to pass as Sportradar AG reported that their US business turned a profit of €19 million (roughly $20.6 million USD) in 2023. They came close to breaking even in the US in 2022, reporting a loss of €4 million ($4.35 million USD).
Sportradar AG, a leading figure in the Nasdaq-listed sports technology arena generally reported remarkable commercial and operational milestones for 2023. The company has set its sights on an ambitious goal for the upcoming year: surpassing €1 billion in corporate revenues in 2024.
Sportradar reported its third consecutive year of double-digit growth, with corporate revenues reaching €878 million, marking a significant 20% increase from the €730 million recorded in FY2022. This growth is mirrored in the company’s adjusted EBITDA, which saw a robust 33% rise to €167 million in FY2023, up from €125 million the previous year.
The year’s trading highlights include substantial contributions from all core business segments to the company’s growth trajectory. Notably, Sportradar’s ROW (Rest of the World) betting services experienced a 20% surge in sales to €467 million, up from €389 million in FY2022, and a 25% increase in EBITDA to €210 million, from €182 million in the previous period. This impressive growth in the ROW betting services segment was driven by a significant 48% rise in demand for Sportradar Managed Betting Services (MBS) and live odds services, both from existing clients and new partnerships.
Furthermore, the ROW segment of Sportradar also reported a 14% growth in Audiovisual and media sales, reaching €182 million, compared to €161 million in FY2022, along with an EBITDA of €52 million, up from €46 million. This growth in the audiovisual segment is attributed to the adoption of new Sportradar media-rights packages, including exclusive rights for CONMEBOL in South America and the NBA.
Sportradar’s U.S. operations also boasted significant growth, with revenues for FY2023 totaling €166 million, a 33% increase from the €127 million reported in 2022. This growth was fueled by robust sales of extended NBA data rights with key partners such as BetMGM and Caesars, in addition to an increase in the sale of ‘add-on’ U.S. wagering and intelligence services.
A significant corporate milestone was achieved in the U.S. market, where Sportradar’s segment realized an EBITDA profitability of €19 million, a remarkable turnaround from the €4 million losses recorded in FY2022. This achievement underscores Sportradar’s strategic focus and operational efficiency in one of its key markets.
