The revenue of the Sportradar betting service is growing at a double-digit pace

Swiss sports betting service Sportradar Group AG (SRAD) has published a report for the second quarter, which exceeded expectations due to strong revenue growth. At the auction on August 17, the SRAD stock was worth $13.39. The market capitalization was $3.71 billion. In the last quarter, Sportradar’s revenue grew 23% year-on-year to €177.2 million; in the US, the company’s revenue increased by 66% to €29.1 million. 

Adjusted EBITDA decreased by 13% to €27.6 million, and cash and cash equivalents amounted to €715.6 million. So far, the American market has brought Sportradar only 16% of total revenue. But the impressive growth rates in this market attracted the attention of investors, which became the driver of quotations. Sportradar has a strong cash flow and a large cash reserve. The company offers sports betting services and partners with famous sports leagues like the NBA, UEFA, and NASCAR. Sportradar offers an accompanying set of tools for such services, including statistics, competition data, video streams, etc. 

Many states have legalized this entertainment segment in the USA, which opens up opportunities for Sportradar to grow sales, even in conditions of intense competition in this regional market. Sportradar has enough cash for marketing and fighting for American market share. In addition, the company earns revenue in other markets. Sportradar management expects an improvement in financial performance in 2022. Income in the range of €695—€715 million means an increase of at least 24% year-on-year. 

In August, Sportradar added a betting service for events in the NBA basketball league to its ecosystem. The basketball audience in the world numbers more than 2 billion people, and the Sportradar Virtual NBA service provides betting operators with the opportunity to work with 3,000 games per day.