The expansion of legal sports betting in the United States doesn’t just improve the value of gambling companies. It also buoys the businesses of corporations that service gambling companies as well. Sportradar is one such corporation.
Sportradar recently reported an 11% year-over-year uptick in its US revenue. The biggest contributions toward that growth came from Sportradar’s gambling services and adjacent products.
Sportradar takes US business to new heights
When it comes to services for gambling companies in the US, Sportradar has two primary products; audio-visual content and data streaming. Sportsbooks in the US, for example, utilize Sportradar’s data feeds to settle bets on myriad events.
An example of that is National Basketball Association events. During the past year, both BetMGM and Caesars have renewed their contracts with Sportradar for those services. In the case of BetMGM, that includes optical tracking data for the first time.
Sportradar also filled out its portfolio of sports property data rights relevant to the US market with a new relationship with US Soccer in August. That same month Sportradar also re-upped its data rights contract with NASCAR.
Along with the expansion of legal gambling in markets like Massachusetts and Ohio, these events all played roles in the increase in Sportradar’s US revenue.
Sportradar shares positive news regarding US business
On a global basis, profit shrunk for Sportradar for the third quarter of 2023 compared to the same period in 2022. According to a release from Sportradar, profit from all segments worldwide for the quarter was $4.9 million, down from $13.6 million in Q3 2022.
Sportradar does not segment out its operating costs and profit by region. Therefore, it’s difficult to know how much US operations contributed to that reduction in profitability. Increased revenue does not guarantee increased profit.
In terms of revenue alone, Sportradar reported about $37.4 million from its US operations for the third quarter of 2023. Again, though, it’s unclear how much it cost Sportradar to make that figure.
Sportradar does note that “results were primarily driven by growth of 19% collectively in betting and gaming, and audiovisual products.”
In the Q3 2023 news release, Sportradar announced a 10% reduction in its global workforce. That part of the release features no information about how much of that reduction will impact the US business, though.
Overall, Sportradar has been growing its US business partially as a result of gambling expansion and technological advancement. The company still might have work to do to reach the levels of profit that will please investors, however.