Sportradar Reports First Quarter Results

First Quarter 2025 Highlights

   -- Revenue increased 17% to EUR311 million 
 
   -- Profit for the period increased to EUR24 million and expanded to 7.8% as 
      a percentage of revenue 
 
   -- Adjusted EBITDA1 increased 25% to EUR59 million and Adjusted EBITDA 
      margin1 expanded to 18.9% 
 
   -- Net cash generated from operating activities increased 52% to EUR102 
      million and Free cash flow1 increased EUR32 million to EUR32 million 
 
   -- Achieved Customer Net Retention Rate1 of 122% 
 
   -- Extended and expanded partnership with Major League Baseball through 2032 
 
   -- Announced agreement to acquire IMG ARENA and its global sports betting 
      rights portfolio 

ST. GALLEN, Switzerland, May 12, 2025 (GLOBE NEWSWIRE) -- Sportradar Group AG (NASDAQ: SRAD) ("Sportradar" or the "Company"), a leading global sports technology company focused on creating immersive experiences for sports fans and bettors, today announced financial results for its first quarter ended March 31, 2025.

Carsten Koerl, Chief Executive Officer of Sportradar, said: "We had a strong start to the year with record quarterly revenue as we delivered broad-based growth across our leading product suite and diverse global footprint, while expanding margins and cash flow. The continued momentum we are generating builds upon our success from last year, demonstrating the durability of our business and our mission critical role in the expanding sports ecosystem. During the quarter we also further bolstered our leading content portfolio with the extension and expansion of our partnership with Major League Baseball and we signed an agreement to acquire IMG ARENA's sports betting rights portfolio. We are excited by the unique opportunities these valuable properties will provide to our customers and look forward to generating additional value for our shareholders in 2025 and beyond."

FIRST QUARTER FINANCIAL RESULTS

Revenue

 
                                          Three-Month Period Ended 
                                                  March 31, 
                                      -------------------------------- 
in EUR thousands (unaudited)           2025     2024    Change    % 
-----------------------------------   -------  -------  ------  ------ 
Revenue by product 
   Betting & Gaming Content           193,807  171,588  22,219  13% 
   Managed Betting Services            56,214   48,328   7,886  16% 
                                      -------  -------  ------ 
Betting Technology & Solutions        250,021  219,916  30,105  14% 
 
   Marketing & Media Services          46,610   34,278  12,332  36% 
   Sports Performance                  11,411    9,306   2,105  23% 
   Integrity Services                   3,189    2,394     795  33% 
                                      -------  -------  ------ 
Sports Content, Technology & 
 Services                              61,210   45,978  15,232  33% 
                                      -------  -------  ------ 
Total Revenue                         311,231  265,894  45,337  17% 
                                      =======  =======  ====== 
 
Revenue by geography 
   Rest of World                      225,130  200,332  24,798  12% 
   United States                       86,101   65,562  20,539  31% 
                                      -------  ------- 
Total Revenue                         311,231  265,894 
                                      =======  ======= 
 

Total revenue for the first quarter was EUR311 million, up EUR45 million, or 17% year-over-year, driven by 14% growth in Betting Technology & Solutions and 33% growth in Sports Content, Technology & Services.

Betting Technology & Solutions revenues of EUR250 million were up 14% year-over-year primarily driven by a 13% increase in Betting & Gaming Content primarily from customer uptake of additional products and from U.S. market growth. Managed Betting Services revenues were up 16% driven by strong growth in Managed Trading Services from increased turnover and higher trading margins.

Sports Content, Technology & Services revenues of EUR61 million increased 33% year-over-year primarily driven by 36% growth in Marketing & Media Services led by higher ad:s revenue as several sportsbooks increased spending on marketing campaigns, and from contributions from the expansion of our affiliate marketing capabilities.

The Company generated strong revenue growth globally with Rest of World up 12% and the United States up 31%. As a percentage of total Company revenues, United States revenue represented 28% of total Company revenue in the first quarter as compared to 25% in the prior year quarter due to continued market growth and additional customer uptake of our products.

Customer Net Retention Rate of 122% further demonstrates our ability to cross-sell and up-sell to our clients, as well as the market growth in the United States.

Profit for the period

Profit for the period was EUR24 million, up EUR25 million, compared to a loss of EUR1 million in the same quarter a year ago, driven by strong operating results and a foreign currency gain of EUR28 million in the quarter as compared to a EUR14 million loss last year, due to unrealized currency fluctuations mainly associated with the U.S. dollar-denominated sport rights. These increases were partially offset primarily by higher share-based compensation and amortization of capitalized sport rights licenses expenses compared with the first quarter a year ago.

Adjusted EBITDA

First quarter Adjusted EBITDA was EUR59 million, up EUR12 million, or 25%, compared to EUR47 million in the same quarter a year ago. The increase was largely driven by the 17% revenue growth, partially offset by increased sport rights costs primarily related to the continued success of the ATP partnership deal, higher purchased services driven by investments in developing our product portfolio and increased personnel expenses to support growth initiatives.

Business Highlights

   -- Announced agreement to acquire IMG ARENA and its global sports betting 
      rights portfolio. Following receipt of regulatory approvals and the 
      closing, which is currently anticipated to take place in the fourth 
      quarter of 2025, IMG ARENA's portfolio is expected to enhance 
      Sportradar's content and product offering and further strengthen its 
      strategic position as a leading content provider in the most bet upon 
      global sports, including tennis, soccer and basketball. 
 
   -- Announced the extension and expansion of our partnership with Major 
      League Baseball ("MLB") for 8 years, beginning with the 2025 season. 
      Sportradar will exclusively distribute ultra-low latency official MLB 
      data, media content, including MLB Statcast Data, and audiovisual content 
      across our global client network. Additionally, Sportradar and MLB will 
      collaborate on the creation of AI-driven products powered by player 
      tracking data to create immersive, hyper-personalized fan experiences. 
 
   -- Expanded Alpha Odds, Sportradar's AI-enabled premium odds calculation and 
      risk management solution, into cricket, a sport that generates an 
      estimated EUR80 billion in global betting turnover annually. 
 
   -- Signed multi-year partnership with the Brazilian Volleyball Confederation 
      (CBV) to safeguard CBV competitions from corruption and match-fixing 
      through Sportradar's Universal Fraud Detection System (UFDS), and to 
      supply metrics and dynamic visualizations for coaching teams. 
 
   -- Extended long-standing partnership with the Brazilian Football 
      Confederation (CBF). Sportradar will deliver integrity monitoring for 
      more than 8,200 men's and women's matches organized annually by the CBF, 
      now including all Brazilian national championships. 

Balance Sheet and Liquidity

The Company's cash and cash equivalents were EUR358 million as of March 31, 2025 as compared with EUR348 million as of December 31, 2024. The increase was primarily driven by net cash generated from operating activities of EUR102 million due to the strong operating performance, partially offset by net cash used in investing activities of EUR66 million, primarily from the acquisition of additional sport rights and from net cash used in financing activities of EUR19 million, due primarily to share repurchases related to employee stock grants. Free cash flow for the first quarter was EUR32 million, an increase of EUR32 million compared to the same period a year ago.

Including its undrawn credit facility, the Company had total liquidity of EUR578 million at March 31, 2025 as compared to EUR568 million as of December 31, 2024, and no debt outstanding.

2025 Annual Financial Outlook

Sportradar reiterated its fiscal 2025 outlook as follows:

   -- Revenue of at least EUR1,273 million, representing year-on-year growth of 
      at least 15% 
 
   -- Adjusted EBITDA of at least EUR281 million, representing year-on-year 
      growth of at least 26% 
 
   -- Adjusted EBITDA margin expansion of at least 200 basis points 
 
   -- Free cash flow conversion1 rate above the 2024 level of 53% 

The 2025 guidance does not include any impact from the pending acquisition of IMG ARENA given the uncertainty around the timing of close. Guidance will be updated to incorporate the anticipated uplift resulting from this acquisition following the closing of the transaction.

Share Repurchase Plan

In March 2024, the Board of Directors approved a $200 million share repurchase plan. As of May 9, 2025 the Company has repurchased 4.8 million shares under the plan for a total of $86 million, including 3.0 million shares in conjunction with the recently completed secondary offering.

Conference Call and Webcast Information

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May 12, 2025 07:00 ET (11:00 GMT)