Sportradar AG(US:SRAD)2025-11-05 14:30Financial Data and Key Metrics Changes - Sportradar achieved record Q3 revenues of EUR 292 million, representing a 14% increase year-over-year, driven by higher uptake from existing partners and strong US market growth [5][21] - Adjusted EBITDA grew by 29% year-over-year to EUR 85 million, with an adjusted EBITDA margin expanding over 300 basis points to a record 29% [5][26] - Free cash flow for the year reached EUR 149 million, with a conversion rate of 72% [5][32] Business Line Data and Key Metrics Changes - Betting technology and solutions revenue was EUR 233 million, growing 11% year-over-year, primarily due to a 19% increase in managed betting services [21][23] - Sports content technology and services revenue increased by 31% year-on-year to EUR 59 million, led by marketing and media services [24] - Integrity Services saw contributions more than double due to increased uptake from league partners [24] Market Data and Key Metrics Changes - US revenue grew by 21%, while revenue from the rest of the world increased by 13% [25] - In Q3, US revenues accounted for 23% of the total revenue mix, reflecting the seasonal impact of the NBA and NHL off-seasons [25] Company Strategy and Development Direction - The acquisition of IMG ARENA is expected to enhance Sportradar's competitive position and drive future growth, with a focus on integrating and monetizing new rights [6][8] - The company aims to capitalize on the rapid expansion of the global sports betting market by enhancing its product offerings and client relationships [6][19] - Sportradar is focused on innovation, particularly in personalized and interactive experiences for fans, leveraging AI technology for product development [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth strategy and the significant opportunities ahead, particularly with the integration of IMG ARENA [19][35] - The company anticipates strong free cash flow growth for the full year and has raised its full-year guidance to at least EUR 1.29 billion in revenue, representing a year-over-year growth of at least 17% [33][34] - Management noted that while the acquisition of IMG ARENA will contribute to growth, the majority of meaningful revenue and cost synergies will be recognized in 2026 [34] Other Important Information - The company has authorized an increase in its share repurchase program by $100 million, bringing the total to $300 million [6][32] - Sportradar's strong liquidity position is highlighted by $360 million in cash and cash equivalents with no debt outstanding [31] Q&A Session Summary Question: Clarification on full year 2025 EBITDA raise - Management indicated that the majority of the revenue increase relates to the inclusion of IMG Arena, while the EBITDA increase is primarily from the existing business [40][41] Question: Update on client conversations regarding IMG - Management stated that discussions with existing clients have begun post-acquisition, with optimism about integrating new rights into their offerings [46][48] Question: Impact of Integrity Services on negotiations with leagues - Management confirmed that Integrity Services is a strong enabler for expanding their betting services, enhancing their value proposition to leagues [55][56] Question: iGaming opportunities for Sportradar - Management discussed ongoing tests in Brazil and the potential for integrating iGaming into their portfolio, emphasizing a holistic approach to client acquisition [61][62] Question: Update on prediction markets and stakeholder engagement - Management highlighted ongoing discussions with leagues and regulators about prediction markets, emphasizing the need for a clear regulatory framework [67][70]