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Sportradar Announces Strong Third Quarter 2021 Financial Results

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Sportradar Group AG , a leading global technology platform enabling next generation engagement in sports, and the number one provider of business-to-business solutions to the global sports betting industry, today announced financial results for its third quarter ended September 30, 2021.

Third Quarter 2021 Highlights

  • Revenue in the third quarter of 2021 increased 30% compared to the third quarter of 2020 to €136.8 million ($158.7 million)1, driven by robust growth across all geographies and business segments
  • Continued strong performance in the U.S. market with U.S. revenue in the third quarter of 2021 increasing by 119% compared to the third quarter of 2020. For the nine months ended September 30, 2021 the U.S. revenue reached €48.5 million ($56.3 million)1
  • Adjusted EBITDA* in the third quarter of 2021 was up 21% compared to the third quarter of 2020 to €20.9 million ($24.2 million)1
  • Strong Dollar-Based Net Retention Rate* of 128% at the end of third quarter of 2021, underscoring the continued success of our cross-sell and upsell strategy
  • Successfully extended our partnership through 2028 with FanDuel Group, a leader in the U.S. sports betting market, covering pre-match betting services, live betting services, and betting entertainment tools
  • Completed successful listing on Nasdaq, raising €546 million of primary net proceeds to fund continued growth in the business, providing the Company with €878 million to continue to invest in global growth
  • For the full-year 2021, we expect revenue to be in the range of €553 to €555 ($641 to $644)1 million and Adjusted EBITDA* in the range of €99.5 to 101.5 ($115.4 to $117.7)1 million.

 

Q3
Q3
Change
2021
2020
%
Revenue €136.8 €105.3 +30%
Adjusted EBITDA* €20.9 €17.3 +21%
Adjusted EBITDA margin* 15% 16% -7%
Dollar-Based Net Retention Rate* 128% 114% +12%
Adjusted Free Cash Flow* €32.9 €13.5 +144%
Cash Flow Conversion* 158% 78% +102%

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1 For the convenience of the reader, we have translated Euros amounts in the tables below at the noon buying rate of the Federal Reserve Bank of New York on September 30, 2021, which was €1.00 to $1.16.
* Non-IFRS financial measure; see “Non-IFRS Financial Measures and Operating Metrics” and accompanying tables for further explanations and reconciliations of non-IFRS measures to IFRS measures.

Carsten Koerl, Chief Executive Officer of Sportradar said: “Our strong results demonstrate the value we provide to our partners and customers around the world. We are the largest provider of sports intelligence in the world and the only profitable global sports technology platform of scale. Critically, we believe we are also the most innovative in developing technology solutions that enable our league customers, media and betting partners to use our ever-increasing data to attract and engage sports fans.”

Koerl continued, “We plan to continue to make significant investments, particularly in the U.S. 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 percent of our group revenues, representing a significant potential business opportunity as more states legalize betting and the market expands from $1 billion in 2019 to an estimated $23 billion in the next 10 years. Our recent Nasdaq listing in the U.S. was a tremendous milestone for our team, and we look forward to building on our success in a multitude of areas in the years ahead.”

Financial Highlights for the Three Months Ended September 30, 2021

  • Revenue in the third quarter of 2021 increased by 30% compared to the third quarter of 2020 to €136.8 million
  • Adjusted EBITDA* in the third quarter of 2021 increased by 21% compared to the third quarter of 2020 to €20.9 million
  • Adjusted EBITDA margin* remains strong at 15% in the third quarter of 2021, a slight decrease compared to the third quarter 2020 due to additional IPO costs of approximately €5.7 million which were incurred in the third quarter of 2021. Eliminating the impact of IPO costs would result in an Adjusted EBITDA margin of 20%, illustrating our continuous ability to achieve operating leverage
  • Dollar-Based Net Retention Rate* increased from 114% to 128% for the comparable twelve month period ending at September 30, 2020 and 2021 demonstrating continued execution of our upsell and cross-sell strategy and underscoring the quality of the products and services we provide our customers
  • Adjusted Free Cash Flow* in the third quarter of 2021 increased by 144% to €32.9 million which resulted in a Group Cashflow conversion of 158%
  • Cash totaled €768.4 million as of September 30, 2021. Total liquidity available for use at September 30, 2021, including undrawn credit facilities was €878.4 million
  • Total Debt at September 30, 2021 was €436.7 million resulting in a net cash position of €331.7 million

Segment Information

RoW Betting

  • Segment revenue in the third quarter of 2021 increased by 24% compared to the third quarter of 2020 to €78.6 million. This growth was driven primarily by uptake in our higher value-add offerings including Managed Betting Services and Live Odds Services, which increased by 63% and 20% respectively, as a result of new customers wins as well as increased turnover2 and volume.
  • Segment Adjusted EBITDA* in the third quarter of 2021 increased by 36% compared to the third quarter of 2020 to €44.7 million. The Segment Adjusted EBITDA margin* improved from 52% to 57% in the third quarter of 2021 driven by growth in higher margin products.

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2 Turnover is the total amount of stakes placed and accepted in betting.

RoW AV

  • Segment revenue increased in the third quarter of 2021 by 13% compared to the third quarter of 2020 to €29.0 million.  This growth was impacted by COVID related schedule changes in 2020, when more matches than usual were played in Q3 2020.  Adjusting for schedule changes Q3 2021 growth was approximately 30%, driven by volume growth as we were able to sell more matches (such as Soccer and Baseball) as well as growth from additional, new content (such as Copa America, Horse Racing and eSports) being sold to existing and new customers.
  • Segment Adjusted EBITDA* in the third quarter of 2021 increased by 220% compared to the third quarter of 2020 to €9.6 million. The Segment Adjusted EBITDA margin* improved from 12% to 33% in the third quarter of 2021 driven by lower cost of some content.

United States

  • Segment revenue in the third quarter of 2021 increased by 119% compared to the third quarter of 2020 to €19.6 million. This result was driven by growth in our US Betting services and increased revenue from our customers as the underlying market and turnover grew. We also experienced strong adoption of our ad:s product, growth in US Media and a positive impact from the acquisition of Synergy Sports in the second quarter of 2021.
  • Segment Adjusted EBITDA* in the third quarter of 2021 increased by 24% compared to the third quarter of 2020 to -€(6.6) million. The Segment Adjusted EBITDA margin* improved from (-60%) to (-34%) in the third quarter of 2021 which reflects the scalability of this business and clear path to profitability while continuing to invest in the US market.

Costs and Expenses

  • Personnel expenses in the third quarter of 2021 increased by €20.0 million compared to the third quarter of 2020 to €51.3 million resulting from additional hires in new business lines (2.849 FTE in the third quarter of 2021 vs 2.235 FTE in the third quarter of 2020), stock-based compensation, and reversal of temporary COVID 19 cost savings in the third quarter of 2021 compared to the third quarter of 2020.
  • Other Operating expenses in the third quarter of 2021 increased by €15.7 million compared to the third quarter of 2020 to €25.2 million mainly driven by incurred costs for IPO, compliance costs relating to operating as a publicly listed company in the US and M&A costs.
  • Total Sport rights costs in the third quarter of 2021 decreased by €9.0 million compared to the third quarter of 2020 to €28.7 million resulting from fewer major sporting events in the third quarter of 2021 compared to the third quarter of 2020.
  • Adjusted EBITDA* in the third quarter of 2021 was negatively impacted by IPO costs of €5.7 million. Eliminating this impact would result in an Adjusted EBITDA* of €26.6 million.

Recent Business Highlights

  • Issued and sold 19 million shares in connection with the closing of our IPO on Nasdaq raising €546 million of primary net proceeds
  • Signed integrity partnerships with leading sports leagues and federations such as cricket’s Tamil Nadu Premier League (TNPL), Badminton Europe and the Austrian Tennis Association
  • Secured a multi-year exclusive official data and media rights deal with Ligue Nationale de Basket (LNB), France’s top basketball league
  • Implemented full Computer Vision models for Grand Slam tennis events including Wimbledon and US open
  • Combined newly developed AI tools with our Managed Trading Services, Sportradar’s holistic trading service for sportsbook operators, to more accurately detect potential betting related match-fixing
  • Announced partnership extension with US market leader FanDuel Group through 2028
  • Announced a five-year deal with US betting and iGaming operator, Bally’s Interactive, to help support and grow sportsbook operations in the US
  • Celebrated three wins at the EGR B2B Awards in the Best Customer Service and Live Streaming Supplier categories, as well as the recently acquired Fresh Eight being shortlisted for Best Marketing and PR Supplier

Financial Outlook

For the full-year 2021, the Company currently expects:

  • Revenue in the range of €553 million to €555 million, representing growth of 36.6% to 37.1% for fiscal 2021
  • Adjusted EBITDA* in the range of €99.5 million to €101.5 million, representing growth of 29.4% to 32.0% for fiscal 2021

Conference Call and Webcast Information

Sportradar will host a conference call to discuss the third quarter 2021 financial results on November 17, 2021 at 8:00 a.m. Eastern Time (“ET”). The conference call can be accessed live over the phone by dialing 1-877-423-9813, or for international callers 1-201-689-8573. A replay will be available from 11:00 a.m. ET on November 17, 2021 through November 24, 2021, by dialing 1-844-512-2921, or for international callers 1-412-317-6671. The replay passcode will be 13724560.

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iGaming

The LATAM Online Casino Market: Where Innovation Meets Localization

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Latin America, or LATAM, is quickly rising on the global radar as a hot new playground for online casinos. A lively mixture of tech-hungry young people, wider Internet access every month, and rules that are slowly but steadily growing friendlier to gaming makes the region a tempting patch of soil for operators eager to plant their brand. Unlike older markets that are already crowded and tightening the regulatory screws, LATAM still feels fresh and open, letting companies chase fast gains by leaning on bold ideas, local flavors, and mobile-first thinking.

Why LATAM Is a Key Growth Market for Online Gambling

A few key trends are stacking the deck in favor of LATAM casinos. First, smartphones have practically become a third arm for many residents. The GSMA Mobile Economy report for 2023 says more than 73 percent of the region now carries a smartphone, and that share keeps climbing. Such broad pocket-sized connectivity lets gaming sites reach players, even in remote towns, without the extra cost of shops or kiosks.

Second, LATAM’s population is much younger than Europe or North America. Millennials and Gen Z together make up a huge slice of the online betting crowd. Because these generations live, shop, and play through apps, they slide into digital payments and gamified screens with little friction, exactly the kind of audience casinos dream about.

Third, even though rules still differ from nation to nation, the general trend is toward looser, friendlier legislation. Brazil, for example, just passed a law covering fixed-odds sports betting and other online games, a clear sign that officials want licensed, taxable sites.

For LATAM players who prefer local touches, a one-stop hub such as Ingamble proves useful. The service directs users to casinos in their language, accepts their usual payment methods, and meets local laws, building the trust and ease that a young market needs.

How Cultural Differences Shape Casino Preferences

Grasping what people like in each country is critical to success, and LATAM shows that well. Its mix of cultures, customs, and histories means a blanket offer will disappoint in most places. In Mexico, for instance, community bingo nights and brightly themed slots still rule the floor, echoing deep traditions. Developers win by weaving folkloric images, regional music, and familiar tales into those games.

Brazilians, by contrast, look for platforms that merge casino fun with sports betting heat. Because football is almost a second religion, sites that serve live odds alongside a spinning wheel or table gain a clear and lasting advantage.

Localizing a product goes well beyond swapping English words for Spanish or Portuguese. It means building every step of the user journey around local holidays, favorite sports, and even the colors people associate with luck. When a digital service reflects the rhythm of daily life in a country, users stay longer and come back more often.

LATAM’s payments landscape is fragmented, so every casino must meet players where they are. Many customers are underbanked or lean on alternative tools, which makes integrating local methods essential rather than optional. Accepting Brazil’s PIX or the classic boleto bancario has moved from a bonus feature to a bare minimum.

Across the region, Argentina’s Mercado Pago rules wallets while Colombia’s Mercado Pago leads transfers through PSE. If these gateways are missing, carts are abandoned and trust disappears.

Currency support matters just as much. Enabling deposits and withdrawals in pesos or reales spares players conversion fees, and signals the operator treats them like a local. Casinos that add instant payouts and clear fee structures speed up service and earn a valuable edge.

Mobile Dominance: Data-Light Designs Win

Smartphones drive almost all online traffic across LATAM, so any brand that ignores them is courting failure. Yet mobile success goes beyond fitting a website on a small screen; it means building services that run smoothly on flaky networks and budget handsets.

Enter Progressive Web Apps (PWAs), a lightweight layer that gives casino players app-like speed without the hassle of Big Store downloads. Pair that with smart tricks: images that shrink on command, offline pockets so play never halts, and a no-frills layout that cuts data costs for users counting every megabyte.

Market leaders also roll out lite skins, peeling off heavy animations and endless scripts in favor of bare-bones speed and rock-solid uptime. Research shows delays of even a second can send players packing, turning lean design from a tech choice into a profit-or-loss showdown.

Localization Beyond Language: Bonuses and UI

Translation may get the words right, but it rarely captures what a player actually feels. Rewards, loyalty plans, and promos need to mirror local rhythms or they fade into the noise. A Holy Week rebate or a Festas Juninas gift card, for example, speaks straight to a Brazilian wallet and makes gaming personal.

User interfaces should always respect the tastes of the region. Across most LATAM markets, bold colors and lively animations win users more reliably than soft, stripped-back looks. Themes that borrow from local myths, beloved athletes, or street parties hit harder and draw stronger emotional ties.

Clear, honest talk about bonuses – especially wagering rules – matters just as much. LATAM players often arrive wary and quick to abandon sites that hide or twist the fine print. Simple, plain-language promises and fair play keep satisfaction high and churn low.

LATAM Regulation: Fragmented Today, Unified Tomorrow?

The legal landscape across LATAM still looks like a patchwork quilt, with every nation moving at its own rhythm. After years of debate, Brazil has at last laid down the first stones for an official iGaming market. Rules passed in 2023 set out licensing, tax rates and ad norms, marking a huge step for the region.

Colombia stays ahead, having greenlit online gambling in 2016 and handing out more than twenty operators’ licences since then. Its clear framework shows how steady oversight can tempt first-class global brands while still shielding everyday players.

Yet nations such as Venezuela and Bolivia remain at the back, relying on vague or years-old laws. So, firms chasing regional growth move quickly, launching under Curacao or MGA permits and promising to shift to local licenses once the rules firm up.

This patchwork of regulations calls for clear-eyed planning. Online casinos must link arms with lawyers and compliance pros who can steer them through local quirks, keep them out of gray markets, and support lasting operations.

LATAM’s online casino field is tricky but lucrative. Brands that respect local culture, invest in thorough localization, and build mobile-first sites stand a strong chance. As rules continue to modernize and user appetite grows, happy young audiences and friendly smartphone stacks regions shine as a fresh frontier for global iGaming.

The post The LATAM Online Casino Market: Where Innovation Meets Localization appeared first on Gaming and Gambling Industry in the Americas.

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Brendan O’Kane CEO at OtherLevels

The missing link: Transforming available data into hyper-relevant activation and engagement

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Brendan O’Kane, CEO at OtherLevels, reveals how transforming data into more relevant and sophisticated communications is hugely successful at activating and engaging customers.

Fewer than 100 days out from the start of the new NFL season, sportsbooks will be planning  their marketing strategies to maximize the engagement opportunities that the season brings.

A month after the Philadelphia Eagles go up against the Dallas Cowboys, the NBA season also gets underway. Both landmark dates will long since have been picked out by sportsbook marketing teams as hooks to reactivate existing customers.

However, OtherLevels recent research shows that a reliance on mass seasonal campaigns not only risks missing the target in terms of engagement and activation, but can actively alienate customers. Modern, digital-first customers are smart and savvy – and they see through and ignore generic communications.

Our findings showed that seasonal campaigning, driven by high-profile sports, is over-prioritised with individual customer behaviors and preferences heavily under-utilized. The study also highlighted a common gap where raw behavioral data – which all operators have access to – is not transformed into sophisticated content and media.

Activation and Engagement

To determine how effectively one of the leading US-based sportsbooks was creating relevant  communications for its customers, we conducted a two-month study of mobile engagement using the app push channel. The premise behind the research was that personalized, relevant and contextual communications lift activation and engagement in sports betting.

Our research team tracked two consistent customers who placed a total of 228 similar wagers on NFL, NBA, NHL, and EPL events. Both customers consistently bet on the same teams and props with consistent cash values.

Our expectation was that the sportsbook would leverage the repeated, predictable behaviour to tailor personalized communications.

The results, however, showed a significant lack of personalization. Despite both of our users exclusively betting on professional football, basketball, soccer and hockey, 29% of communications failed to mention any of these sports.

A total of 23% of messages promoted college football or basketball, which neither customer had ever wagered on. Soccer, which accounted for 19% of total bets placed, featured in only 1% of communications.

A mere 7% of communications contained token personalization – most of which was attribute-based (customer name or location), with 93% completely lacking behavioral personalization. Crucially, the operator failed to use betting behavior to tailor content related to preferred teams, props, markets, or odds changes.

The research showed that there is a significant disconnect between what we expected in terms of personalized communications and what was delivered. It uncovers a prevalent challenge within the industry: the disparity between the availability of customer data and how to transform this into compelling content and media, suitable for use by a (generic) CRM platform.

To create campaigns that are more effective, customer data needs to be transformed into content and activation needs to be automated. This is not trivial – a personalization engine does not create content, it outputs a JSON data recommendation. Automation is equally challenging. Take the NBA as an example: given that there are over 1,300 games, without an automated content and media creation capability built for 24/7 sports, there is a fundamental gap between personalization recommendations and an exciting, in the moment, customer experience. A marketing team relying on a generic CRM platform, lacks the automated content capabilities to create sophisticated sports content and CTAs.

Customer-centric

At OtherLevels, our Experience Platform fills that gap. It combines operator or 3rd party personalized recommendations, live odds, historical betting behaviour, and match context to create 100% automated, hyper-personalized CTA communications, for delivery by existing marTech platforms.

The positive results of this approach are clear to see. For two of the operators we work with, this customer-centric approach to marketing communications resulted in a 16% uplift in engagement across the NBA last season, an 8% lift from NFL for outbound communications and a 30% increase in on-site interaction for sophisticated NFL content.

When sportsbooks gear up for major seasons like the NFL and NBA, a default reliance on traditional CRM platforms that cannot create compelling sport content at scale leads to suboptimal engagement and risks alienating customers.

Conversely, adopting a customer-centric approach that leverages betting behavior and an automated, cutting-edge content and media engine, creates automated, hyper-personalized communications. This approach has been shown to dramatically increase activation and engagement, highlighting a clear next step for more effective sportsbook marketing.

The post The missing link: Transforming available data into hyper-relevant activation and engagement appeared first on Gaming and Gambling Industry in the Americas.

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ACDV certification

GoldenRace becomes the first and only Virtual Sports provider certified for Retail in Colombia

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GoldenRace, leading B2B provider of Virtual Sports and betting solutions, has become the first and only Virtual Sports provider officially authorised to operate in Colombia’s Retail betting market under the new ACDV regulation.

The certification is based on ACDV (Virtual Racing and Sports Betting) standards, published by Coljuegos, Colombia’s national gambling authority, at the end of last year (2024) as part of a new regulatory framework for Virtual Sports in the Retail sector, outlined in Resolution No. 20241200028984.

With this updated certification now in force, GoldenRace proudly leads the way, allowing betting shops across Colombia to legally continue offering its award-winning Virtual Sports portfolio – including bestsellers like Virtual Football, Horse Racing, and Greyhound Racing – fully compliant with the latest national requirements.

“This process involved extensive testing at a prestigious, internationally accredited laboratory,” explained  Julio César Duque, LatAm Director at GoldenRace. “For us, it’s a clear confirmation of the strength of our portfolio and how well our solutions perform in Colombia.”

With the ACDV certification now active, the company is expanding its market-leading Virtual Sports content to Retail, giving local operators more.

“After a successful GAT Colombia 2025 and with the Peru Gaming Show on the horizon, we’re thrilled to keep growing in LatAm,” added Martin Wachter, CEO & Founder of Softquo, the Holding behind GoldenRace. “Colombia holds a special place for us: it’s home to one of our offices and our reforestation initiatives. We are deeply proud that its Retail operators can now enjoy the best of GoldenRace through this new certification.”

The post GoldenRace becomes the first and only Virtual Sports provider certified for Retail in Colombia appeared first on Gaming and Gambling Industry in the Americas.

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