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  • Q3 2023: Sportradar outlines staff reduction plan amid 12% revenue rise
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Sportradar saw revenue grow 12.4% year-on-year to €201m in the latest quarter, according to its Q3 2023 financial report.

Financial breakdown

Of the total revenue, the majority came from the Rest of World Betting segment, covering the data specialist’s betting products outside the US.

In that segment, revenue grew 11.1% to €112.2m. Growth was driven by increased sales of Sportradar’s live odds and live data products, it said.

In the US, meanwhile, revenue was up 11.2% to €35.1m, while Sportradar’s AV services in the Rest of World segment generated €38m, up 14.9%.

Growth in the AV segment was driven by Sportradar’s new agreement with South American football federation Conmebol, and growth in sales to new and existing customers, it said.

Other revenue grew by 18.8% year-on-year to €15.8m.

From its total revenue, Sportradar generated adjusted EBITDA of €50.5m, an improvement of 38.4% over Q3 2022.

That gave the business an improved adjusted EBITDA margin of 25%, compared to 20% in the prior-year period.

Profit for the period from continuing operations was down, however, at €4.6m compared to €12.8m in Q3 2022.

Business update

During the quarter, Sportradar extended several existing contracts and signed new deals with various partners.

For example, the business extended its partnership with BetMGM for official NBA data, and for the first time will now provide the operator with products and services leveraging NBA optical tracking data as a result of its exclusive partnership with the league.

The supplier was also selected by the Taiwan Sports Lottery Company to power its Sports Lottery with a customised omni-channel sportsbook and player management solution.

Elsewhere, Sportradar and NASCAR announced a four-year extension of their media rights partnership, which now includes official betting data, while the supplier was also selected by the Tennis Channel to power the launch of the network’s direct-to-consumer streaming platform.

Headcount reduction and 2023 outlook

One major change at Sportradar is a plan to reduce its global workforce, “as part of a broader set of strategic initiatives.”

The headcount reduction is expected to streamline the company’s operating structure while improving its product ROI and portfolio optimisation.

When completed, the change should result in a 10% reduction of labour cost run rates and contribute positively to future operating leverage, the firm said.

Looking to the remainder of 2023, Sportradar expects revenue between €870m and €880m for the full year, representing growth of between 19% and 21%.

Adjusted EBITDA is expected to fall between €162m and €167m, representing growth of between 29% and 33%.

“For 2023 we remain on track to deliver a strong growth year and are well positioned to maintain that momentum into 2024,” said CEO Carsten Koerl. 

“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 organisation and focus on the market opportunities ahead of us,” he concluded.

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