Second quarter earnings for sports data and analytics pioneer Sportradar were up 29%, led by a 59% jump in business in the U.S., the company announced Tuesday morning. The business, which services sports books and media companies, also raised its outlook for the year.
“This dynamic year in sports, marked by several major international competitions, propelled fan engagement to unprecedented levels, further demonstrating the value of our products,” CEO Carsten Koerl said in prepared remarks on a call with analysts Tuesday.
Sportradar reported total revenue of €278.4 million (about $301 million) for the quarter, which ended June 30, with its largest business segment—betting technology and solutions—seeing a 30% rise globally to €229.1 million ($251 million). Geographically, the U.S. generated €60.6 million ($66.4 million) in revenue for Sportradar, while the rest of the world contributed €217.8 million ($238.6 million), up 22%, according to the company.
The business posted a €1.5 million ($1.64 million) net loss, essentially break-even on a per share basis, though below consensus expectations of a profit of €0.05, according to projections of 11 analysts compiled by S&P Global Market Intelligence.
Stock market reaction was mixed, with early enthusiasm rallying shares more than 7% to a five-month high of $12.26. Sellers responded in force, however, dropping Sportradar shares to as low as $10.75 in the first hour of trading on the Nasdaq stock market. The stock closed down nearly 6.5% at $10.56.
Management pointed to inroads into fast-growing betting markets in Latin American and Africa, as well as the continued growth of U.S. wagering as particular strengths. Sportradar also noted its managed trading services arm, which provides technical expertise and risk management to sports books, signed up 46 new clients in the first half of the year. Deals with the NBA and ATP meant official sports data rights costs—always a concern of Wall Street—jumped 83% to €96 million, though cost containment elsewhere, especially in personnel, meant expenses as a percentage of revenue edged slightly lower. The company bumped up its expectations for fiscal 2024 revenue by about 1% to €1,070 million and sounded a bullish tone for next year.
“We certainly expect strong double-digit growth on the revenue side,” CFO Craig Felenstein said during the question-and-answer portion of the call. “Growth in 2025 will not just be driven by sports rights but also be driven by a broader take up of our existing products, by attracting customers, by higher pricing.” Sportradar said it won’t offer formal guidance on 2025 sales until later this year.
(This article has been updated with Tuesday’s closing stock price.)
