Sportradar: Prediction Markets Contributed to Growth in the Third Quarter

Sportradar CEO Carsten Koerl said prediction markets made a positive contribution to the company's third-quarter results for the first time. During the period, the company expanded its relationships with exchanges, brokers and market makers. US revenue grew 47%, up from about 10% growth in the first half. The company did not disclose how much of its 98 million euros in US revenue came from prediction markets.

Marketing & Media Services revenue rose 15%. In the first half, growth in this line was about 3%. Koerl said IMG Arena content made a meaningful contribution to revenue growth. CFO Craig Felenstein said the World Cup added about $2.5 billion in additional turnover to Managed Trading Services. Felenstein said prediction markets have become an important new source of revenue and that the company is able to monetize its core capabilities in these adjacent markets.

According to Koerl, the ecosystem includes three exchange partners: Kalshi, Polymarket and Novig. The company also signed its first broker agreement with Robinhood and has about 10 market maker agreements. The Polymarket partnership now covers more than 20 sports leagues and competitions. Koerl estimated that the pool of market makers reaches more than 300 firms, depending on the exchanges selected. These firms are looking for faster data for trading on sporting events.

The company had faced delays in its second-quarter expectations. Management had said that prediction market agreements took longer than expected, which deferred revenue and led to a cut in the full-year target. Koerl's latest comments suggest these partnerships are starting to contribute. Felenstein said he expects significant growth in 2027.