Sportradar Stock is Sinking Despite Sports Betting Boom
Bets on basketball, tennis, baseball, football, and soccer led to the strong growth of Sportradar. It is currently the go-to provider of technology and data for sportsbook operators. Also, the company reported that its revenue increased by 30 percent in 2022 to $780 million. In addition, its cash profits improved by 23 percent. As a result, US betting revenue doubled, but Sportradar stock took a hit.
More states legalized sports betting. As a result, sports wagering revenue increased in the US. Also, players prefer placing bets during live play instead of before the game. According to pay per head bookie experts, Sportradar offers online direct advertising to players.
Sportradar’s EBTIBA increased 23 percent to $135 million. However, the company spent on sports league rights and bookie software technology decreased the net profit by 18 percent to $11 million. As a result, Sportradar stocks reduced by 9 percent to $10.76.
Sportradar Stock Took a Hit
For comparison, Sportradar estimates $170 million in cash Ebitda on $970 million in revenue for this year, so the multiple on the stock is 18.
According to bookie pay per head reports, Sportradar’s origins may be traced back to its role as a provider of game data to gambling sites like Flutter Entertainment’s FanDuel. It now provides audiovisual feeds, oddsmaking, and automated marketing through its data services. Compared to competitors like Genius Sports, it has cornered the global market for sports data.
The company that provides betting statistics saw a 35% rise in quarterly revenue to $221 million in the December reporting period. In addition, the company’s quarterly Ebitda increased by $64% to $38 million.
In-play betting contributed significantly to the 77 percent rise in US income, which totaled $44 million. Bets made during games are more lucrative for bookmakers because of the high volume they generate. Sportradar makes $1.2 million for every one percentage point move in betting from pregame to in-play, as stated by Koerl.
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