Sportradar raised its fiscal outlook for the year after reporting major growth in second-quarter revenue, propelled by its US operations.
Sportradar generated €278.4 million ($306.1 million) in Q2, up 29% year-over-year and 5% ahead of consensus Wall Street estimates, according to the company’s Tuesday earnings report. Genius Sports, the company’s main competitor, increased revenue by 17% in Q2.
Higher-than-anticipated rights costs kept gross margins in line with Wall Street estimates. But improved cost controls, particularly a 5% reduction in personnel expenses, led to EBITDA of €49 million ($53.8 million), up 22% year over year.
ATP, NBA fuel surge in US sales
Deals with the ATP and NBA led to an 85% increase in rights costs, sparking record US revenue of €60.6 million ($66.4 million), a 59% increase year over year. The rest of the world produced €217.8 million ($238.6 million), up 22% year over 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 on the company’s accompanying investor call.
Sportradar also expanded its multi-year partnership with UEFA, adding 33% more matches annually and leveraging player tracking data for the first time, beginning with the 2024-2025 European soccer season.
That is notable, given that soccer accounts for nearly half of its global betting handle and has experienced an uptick in the US ahead of the 2026 World Cup in North America, Koerl added. He declined to provide an update about ongoing contract negotiations with MLB.
Double-digit growth in 2025?
Management expects other avenues to follow the growth from those recent deals.
“We certainly expect strong double-digit growth on the revenue side,” CFO Craig Felenstein said. “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 will release more specifics on 2025 sales in the second half of this year. Shares rallied over 7% to $12.26 shortly after the call, but closed at $10.55, down 6.55% on the day.
Largest sector of Sportradar up
Betting technology and solutions made up 82% of quarterly revenue at €229.1 million ($251 million), up 30% year over year.
Demand for Sportradar’s streaming services, and live data and odds products rose 41% and 27%, respectively, resulting in 21% growth in managed betting services and a record $9.9 billion in handle.
That came as clients like DraftKings and FanDuel grew revenue, of which they share a portion with Sportradar under their contracts.
“What we do and hopefully demonstrated is for example with FanDuel, how we lift them up on the value chain, how we can hook up additional products behind the existing offering,” Koerl said. “And that is a continuous effort which you will see over time. And of course, we expect increases here.”
Sportradar sees live betting tool as ‘future of trading’
Sportradar also saw a significant uptick in client adoption of its AI-powered live betting product, Alpha Odds.
“We saw a significant uptick with the clients using Alpha Odds for the Euro. That was roughly around about 15% better from a trading reserve than the clients without it,” Koerl said, describing it as “the future of trading.”
Soccer was the first sport to get Alpha Odds, which is slated for three more sports by next year. The automated trading and pricing product boosted profit by 10% on average for 60 customers last year on an 11% improved trading efficiency.
