Sportradar’s big bet: the advantage of sports betting data

Sportradar Group recently extended its deal with the NBA.

Stacy Revere / Getty Images

Text size

More than 30 states have legalized sports betting. Almost half of them allow online betting. But when it comes to betting, the United States is only catching up with the rest of the world, where gambling has been legal and permitted for decades, whether for soccer, basketball or badminton. And keeping the score for bettors, bookmakers and broadcasters are companies such as

Sportradar Group

(ticker: SRAD).

Switzerland-based Sportradar is the world’s leading provider of sports data and play-by-play counts for the betting industry. Its thousands of correspondents collect data on some 680,000 events per year, in 80 sports, played in more than 120 countries. For many punters, betting is mobile and live throughout a match or match: you can easily bet on the next game or on a next penalty kick.

Revenue has grown 30% per year as the company serves a global sports betting market that could reach $ 70 billion by the end of the decade. Yet since its Nasdaq debut in September, Sportradar stock has fallen by a third to hit $ 18 recently. This values ​​the company at just under $ 5 billion and at a lower price than its much smaller rival.

Engineering sports

(GENI), as measured by 2022 revenue estimates. Investors downplay Sportradar’s growth prospects.

The United States offers clear growth opportunities for Sportradar. As more states legalize sports betting, analysts like Daniel Kerven of JP Morgan estimate that bookies’ gross revenues will rise from $ 4 billion to $ 14 billion by the end of the decade. Currently, Sportradar takes 1% to 2% of this betting “processing” for its gaming data. But it aspires to increase its participation rate above 13% by providing other services including ads, feeds. live video and odds for points, penalties and substitutions for each player.

As in-game betting becomes available in the United States, Sportradar believes these more exciting and emotional bets will supplant pre-match betting. “The betting market in the US is like Europe 10 years ago,” says Carsten Koerl, CEO of Sportradar, “in the US 70-80% of all bets are pre-game, in all sports. In all other world markets, it is the opposite.

Key data
Headquarter St. Gallen, Switzerland
Recent price $ 18.07
Change, since the IPO of Sept. -33%
Market value (bill) $ 5.3
2022E turnover (mil) $ 750
2022E Adj. Ebitda (mil) $ 150
2022E BPA $ 0.18

E = estimate

Source: FactSet

Koerl founded Sportradar in 2001 and owns around a third of the company’s shares and most of its voting rights. Analysts polled by FactSet see the company’s revenue jump to $ 750 million in 2022, from around $ 620 million this year. Earnings before interest, taxes, depreciation and amortization, or EBITDA, is expected to reach $ 145 million in 2022, from $ 115 million this year.

JP Morgan suggests Sportradar’s revenue will grow by around 20% per year through 2025, reaching $ 1.3 billion, with $ 300 million of EBITDA and earnings per share of 57 cents. Analyst Kerven rates the stock at Overweight, believing it could reach $ 27.

Koerl has the ambition to expand Sportradar’s services within the betting industry and beyond. In addition to pre- and post-match data, the company now operates live odds and betting services for hundreds of small and mid-sized bookmakers around the world, effectively serving as a platform of back-end trading while the bookmakers themselves focus on marketing.

Sportradar is keen to provide this outsourced betting technology platform to the biggest bookmakers, making the company a kind of computerized market maker just like you will find in the securities markets. However, it will not be easy to register the best bookmakers: Biggies like


(DKNG) and

Penn National Gaming

(PENN) have recently invested in their own “stacks” of data technology to better control their margins and fate.

Another industry trend to watch is the appetite of sports federations for bigger pieces of the betting pie. Sportradar’s rival Genius Sports have struck costly deals to become the exclusive betting data partner of the English Premier League and the National Football League. Sportradar has been clouded by fears that league links will become increasingly expensive.

These fears should be allayed by a recently expanded deal with the National Basketball Association that takes it to 2030. The deal is a plum for the company – the league gets warrants worth 3% of its shares – because basketball bets are more important than either. football or baseball. And this is a key measure for Sportradar.

Write to Bill Alpert at [email protected]

About Janet Young

Check Also

Technique protects privacy when making online recommendations – Eurasia Review

Algorithms recommend products when we shop online or suggest songs we might like when we …