As the sports betting market continues to grow with new states and territories legalizing it and more users partaking, further data from sports leagues is required, which could benefit a company such as Sportradar Group AG SRAD.
What Happened: Sportradar, which went public in 2021, provides data and technology for sports betting operators and sports media providers. Operating behind the scenes as the key data provider, Sportradar could be considered “the thing behind the thing.”
Sportradar CEO Carsten Koerl described the company as one that provides data and technology and translates it into products for customers, such as sports betting operators, and in some cases supplys a turnkey operation for clients.
“We have most of the companies as our clients,” Koerl told Benzinga.
Sportradar utilizes artificial intelligence for its B2B clients and has proven strong growth over the past several years.
“We proved this now in the last five years that this company is growing in a channel of 35% to 45% every year.”
Koerl said Sportradar is leveraging the market growth of sports betting and sports media. Sports betting is the company’s fastest growth segment with sports media providing “stable growth.”
Sportradar reported revenue growth of 24% in the first quarter to a total of $226.2 million. Included in the results was the U.S. segment, which had revenue growth of 55% year-over-year.
Koerl said the first quarter results showed a strong global footprint. The U.S. segment continues to grow and one item highlighted by Koerl was real-time information provided for sports betting operators.
“We’re shifting more and more to an in-game market.”
Koerl said Sportradar is helping with mathematical simulations and risk management, providing predictive odds for sports betting operators who can then offer odds to betting customers.
Related Link: Exclusive: Sportradar CEO Highlights Enormous Opportunity Ahead
Future Growth: Koerl said there is potential for more states in the U.S. to legalize sports betting including California, Texas and Florida.
Another item helping with potential growth in the U.S. could be fan engagement and player betting markets.
“The exciting thing is the folks in the U.S are really tech savvy, sports data is so core to every sports fan in the US,” Koerl said. “That’s great because that gives us an opportunity.”
Koerl said that fan engagement is increasing as the sports betting market grows and as technology and data evolve, including artificial intelligence, a growing buzzword according to the CEO.
“Real sports engagement is driven by data.”
Sportradar reiterated its full-year guidance of revenue of $983.2 million to $1 billion for the full fiscal year, representing year-over-year growth of 24% to 26% respectively, according to Benzinga Pro.
“We will continue to deliver what we promise."
SRAD Price Action: Sportradar shares are up 15% year-to-date in 2023 and have traded between a range of $7.10 to $14.56 over the past 52 weeks.
Read Next: Sportradar Shares Jump On Earnings, New Exclusive NBA Deal
Watch the interview here (go to 1:48:17)
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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