November 5: Sportradar reported third-quarter revenue of $405.6 million, up 24% year-over-year, thanks to the integration of IMG Arena and new deals with prediction market platforms.
Betting Technology & Solutions contributed $332 million and Sports Content, Technology & Services contributed $73.7 million. Quarterly profit was $30.2 million, with adjusted EBITDA of $114.4 million.
Founder and CEO Carsten Koerl said this was the first quarter showing the benefit of Sportradar’s transition into prediction markets, where it has signed data and integrity agreements with brokers such as Robinhood and exchanges such as Kalshi, Polymarket and Novig. This quarter it expanded its Polymarket deal to cover more than 20 leagues, including MLS, La Liga, Serie A and Liga MX.
“There are some fixed-rate components, when you think about some of the products and services that we offer, and there are some variable components that will grow as those markets grow,” said CFO Craig Felenstein. “We expect there to be significant growth for prediction markets next year.”
Growth comes at a cost. Sports rights spending rose from $81.2 million a year ago to $125 million this quarter, driven largely by IMG Arena. Year-to-date revenue reached $1.2 billion, up from $1 billion, but profit fell from $107.3 million to $19.3 million, partly due to a foreign exchange loss of $27.8 million compared with a gain of $91.5 million last year.
Sportradar is also selling Atrium Sports to Teamworks for $170 million, which Koerl calls a “non-core asset.” It bought back $157 million worth of stock during the quarter.
There is also risk. Brazil provisionally banned online gambling in September, and Congress will debate it this month. Sportradar’s Brazilian business currently does around $67 million a year.
Contact the writer of the story, Nick Webster, a (email protected)
