A top provider of sports data announced a new exclusive deal and investment with a leading sports league. The announcement came on top of the company’s third-quarter financial results.
What Happened: Sportradar Group AG SRAD reported third-quarter revenue of $158.7 million, up 30% year-over-year.
Revenue for the U.S. region was up 119% year-over-year.
“We plan to continue to make significant investments, particularly in the U.S.,” Sportradar CEO Carsten Koerl said. “The U.S. represents the primary area of focus to execute on our strategic growth plans, as the U.S. region is currently only 7% of our group revenues, representing a significant potential business opportunity.”
Sportradar highlighted the extension of their partnership with FanDuel Group, a unit of Flutter Entertainment ADR PDYPY, through 2028. The partnership includes pre-match betting services, live betting services and betting tools.
The company is guiding for revenue to hit a range of $641 million to $644 million for fiscal 2021. Fiscal 2020 revenue was $477.8 million.
Related Link: Sportradar IPO Preview: The Thing Behind The Thing For Sports Betting
NBA Partnership: The National Basketball Association and Sportradar announced an extension on an exclusive deal Wednesday for the data from several NBA properties.
The partnership between Sportradar and the NBA begins with the 2023-'24 season and covers the NBA, WNBA and NBA G League. Sportradar will provide betting data and live game video to sports betting partners.
Sportradar will also gain rights to use player tracking data.
The company highlighting the U.S. opportunity in its earnings release could highlight the potential the NBA deal has for Sportradar.
“Basketball is the largest U.S. sport in the world by popularity and, as a market leader, we are best positioned with the technological expertise and industry relationships to help the NBA entertain fans globally,” Koerl said.
Sportradar and the NBA began their relationship in 2016.
Under the terms of the partnership, the NBA will make an equity investment in Sportradar, which is reported at 3% by Sportico.
Why It’s Important: In 2021, Sportradar has entered into new rights deals with the NBA, National Hockey League, UEFA, the International Tennis Federation and International Cricket Council.
The company lost its long exclusive deal with the National Football League to rival Genius Sports Ltd GENI earlier this year.
Sportradar has more than 900 sports betting customers and covers over 750,000 events annually for 83 sports. The company also counts over 350 media companies as customers.
Mark Cuban, the Canada Pension Plan, Michael Jordan, Todd Boehly, the NHL and the NFL are investors in Sportradar.
SRAD Price Action: Sportradar shares are up 4.39% to $22.60 on Wednesday.
Photo: Markus Spiske via Unsplash
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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