Sportradar
Sportradar says prediction market customers are contributing to its growth as third-quarter revenue rose 24% to €363m. The results, released on 3 November, mark a step forward for a business that sells sports information and technology to companies competing for the same audience.1 The company has not disclosed a separate revenue figure for prediction markets.
On the results call, chief executive Carsten Koerl described the third quarter as the first in which the business saw benefits from its expanded prediction market relationships.2 That matters because the opportunity had previously taken longer to turn into revenue than management expected. The latest update moves the story towards the performance of paying customers.
| Measure | Figure | Scope and comparison |
|---|---|---|
| Group revenue | €363m | Up 24% year on year |
| Sports rights costs | €112m | Up 54% year on year |
| Group adjusted EBITDA | €102m | Company-defined non-IFRS measure |
| Group adjusted EBITDA margin | 28.2% | 29.0% a year earlier |
| Prediction-market revenue | Not disclosed | No separate revenue figure reported |
Financial figures refer to the group. Sports rights costs include amortisation. These group figures do not isolate the profitability of prediction-market contracts.17
The background explains the significance. During its second-quarter call on 3 August, management said completing prediction market deals had taken time, delaying expected revenue. That was one factor behind reduced annual expectations, alongside softer US sportsbook conditions and advertising income that had not recovered an earlier shortfall.3 The new contribution is progress against that difficult summer, rather than proof that the earlier forecast has been restored.
Several Buyers Around the Same Event
For readers familiar with British betting exchanges, the underlying activity is recognisable: participants trade contracts linked to event outcomes. Within the US model Sportradar serves, exchanges host markets, brokers provide a route to them and market makers supply buy and sell prices.78 Those businesses have different needs, creating several potential customers around the same match.
Sportradar had already made that ambition explicit in June. Its multi-year Kalshi agreement covered official sports data, live odds, engagement tools, marketing and integrity services. The announcement also provided a framework for direct deals with brokers and market makers in Kalshi’s ecosystem.4 A venue’s commercial relationship could therefore open access to other businesses trading through it.
The next major expansion came on 27 August, when Sportradar and Polymarket announced a US agreement covering more than 20 leagues and competitions. The package extended sports data, streaming and integrity services across properties including the Bundesliga, EuroLeague Basketball and tennis Grand Slams.5 This makes the commercial offer broader than supplying a final score: live coverage can support trading, presentation and customer engagement throughout an event.
Exchange client
Multi-year data and infrastructure agreement announced on 8 June 2026.4
Exchange client · US agreement
Expanded US agreement announced on 27 August 2026, covering more than 20 leagues and competitions.5
The third-quarter presentation names Kalshi, Polymarket and Novig as exchange clients, with Robinhood shown as a broker client.7 Meanwhile, Sportradar’s established customers include Flutter and DraftKings.1 Our reading is that the supplier gains some protection against uncertainty over which consumer platform will win. Several competitors can become buyers of its services, even while they challenge one another for users.
The payment model determines how far that protection goes. Chief financial officer Craig Felenstein said prediction market agreements include both fixed fees and variable components that can grow with the market. He declined to quantify the separate contribution, saying it would depend on the number and type of deals and trading volumes.2 Signing a client creates an opportunity; the contract determines how much activity becomes revenue.
The Rights Behind the Revenue
There is an established asset base behind those contracts. Sportradar completed its acquisition of IMG ARENA in November 2025, adding relationships with more than 70 rightsholders and a substantial portfolio of official data and streaming events.6 The commercial logic is to distribute that content across more clients and products, increasing the return from rights already secured.
Management argues that prediction market expansion can use existing rights, technology and teams with limited additional investment.2 That is an attractive proposition for a supplier with an established distribution network. In our view, it gives Sportradar a practical advantage over a new entrant that must build relationships, content coverage and delivery systems together.
The expense figures show the other side. Quarterly sports rights costs increased 54% to €112m, mainly because of IMG content, with a smaller contribution from prediction market rights costs tied to revenue. Group adjusted EBITDA reached €102m, while its margin was 28.2%, compared with 29.0% a year earlier.7 These group figures cannot isolate the profitability of prediction market contracts, but they make clear that expanding distribution still involves a substantial rights bill.
The company also retains exposure to the economics of traditional betting. Managed Betting Services revenue fell 3% as higher turnover was outweighed by lower trading margins after unfavourable sporting outcomes.1 That result is a useful reminder that a supplier’s income can depend on how its services are priced and how clients perform. Selling infrastructure does not remove every source of volatility.
What Growth Still Has to Prove
A further question is how much prediction market activity adds to the audience and how much it shifts spending between existing formats. We see the ability to serve both as useful protection, but the revenue retained from each format may differ. A growing exchange business could change the customer mix without producing an equal increase in the total money available to suppliers.
For British readers, commercial expansion abroad also needs to be distinguished from permission to operate here. The Gambling Commission said in February that current prediction market models appeared likely to fall within the betting intermediary category, depending on their structure. It said operators without a British licence should not target or transact with consumers in Great Britain.8 The announced US partnerships do not establish British availability.
Our view is that Sportradar’s opportunity lies in selling dependable services across competing formats while maintaining the rights and commercial relationships behind them. Future results can show how much these new customers contribute, how variable payments develop and what remains after associated costs. That will reveal whether prediction markets become a durable extension of the business that already serves bookmakers.
Prepared with help from ChatGPT.