This is despite overall revenue from continuing operations rising 12.4% to €201.0m in Q3 year-on-year. Sportradar saw growth across all segments, particularly in its Rest of World (RoW) Betting AV segment, which saw revenue grow 15.0% to €38.0m.
RoW Betting revenue brought in €112.1m in revenue, up 11.1%, while US revenue also increased by 11.1% to €35.0m. Revenue from all other segments crept up to €15.7m.
Carsten Koerl, CEO of Sportradar said the Q3 results show the company will be able to deliver growth in its full-year results.
“As the leader in our industry, we aim to consistently deliver value to our clients, partners and shareholders,” he said. “For 2023 we remain on track to deliver a strong growth year and are well positioned to maintain that momentum into 2024.”
This week, Sportradar announced that it would instigate a reduction in its global workforce, which will form part of other strategic initiatives. The company said this would result in a 10% decline in labour cost run rates for 2023.
“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,” added Koerl.
Net profit slides in Q3
Turning to costs, Sportradar’s largest cost for the quarter was €75.3m in operational expenses. Second to this was €45.2m in purchased services and licences, followed by €38.1m in depreciation and amortisation costs.
The quarter saw two costs that were not included in Q3 2022. These were a €9.8m loss on goodwill and intangible assets and a €5.6m impairment loss on assets held for sale.
Factoring in the various costs left the pre-tax net income at €10.5m, down by 27.9% year-on-year. Sportradar paid €5.9m in income tax expense, bringing the profit from continuing operations to €4.6m. Including the €495,000 loss from discontinued operations, the profit for the period was €4.1m.
Adjusted EBITDA for the quarter was €50.4m, marking an increase of 38.3%.
Profit also falls in first nine months
For the first nine months of the year, Sportradar’s revenue totalled at €625.0m, up by 19.3%.
Looking at segmental revenue, RoW Betting generated €334.8m in the first nine months, while RoW Betting AV made €132.1m in revenue. Revenue from Sportradar’s US segment was €112.7m, with all other segments contributing €45.2m.
The highest costs during the period were personnel expenses at €237.2m and €137.9m in depreciation and amortisation expenses.
Net profit before tax more than halved for the nine months, coming to €22.9m from €47.8m in the first nine months of 2022. After paying €11.5m in tax – an amount almost three times higher yearly – the profit from continuing operations was €11.4m, a decrease of 73.8%.
EBITDA for the three quarters was €127.2m accumulatively, up by 40.2%.
Original article: https://igamingbusiness.com/finance/sportradar-continuing-operations-profit-slumps-63-8-in-q3/
