Sportradar Group AG Q1 FY2025 earnings call

• Sportradar had a strong Q1 with highest ever quarterly revenue of €311 million, up 17% year-over-year. • Growth pillars include expanding global sports betting market, increasing take rate by moving clients deeper into product value chain, expanding into adjacent markets like iGaming, and driving innovation via technology and AI. • Acquired IMG Arena's sports rights portfolio, expected to close in Q4 2025, accretive to adjusted EBITDA and cash margins. • Completed secondary offering and repurchased $65 million worth of shares under a $200 million share repurchase program.

Betting Technology and Solutions revenue was €250 million, up 14% year-over-year. Sports Content, Technology and Services had revenues of €61 million, increasing 33% year-on-year. U.S. revenue grew 31% and now represents 28% of total company revenues. Rest of World grew 12% year-over-year. Adjusted EBITDA increased 25% year-on-year to €59 million.

• Reported revenue expected to be at least €1.273 billion, representing year-over-year growth of at least 15%. • Adjusted EBITDA expected to be at least €281 million, growth of at least 26%. • Anticipate adjusted EBITDA margin expansion of at least 200 basis points in 2025. • IMG acquisition not included in current guidance yet but expected to be accretive to revenue, adjusted EBITDA, and free cash flow once closed.

• Forward-looking statements involve risks and uncertainties that may cause actual results to differ from forecasts. • Impact of foreign currency movements, especially against the euro. • Regulatory approvals required for acquisitions. • Market competition and macroeconomic factors affecting the sports betting industry.

Q: Ryan Sigdahl asked about U.S. growth and industry softness.

A: Carsten Koerl said they execute on strategy, have 70% of GGR from big 4 sports, and U.S. now represents 28% of revenue.

Q: Robin Farley asked about IMG acquisition.

A: Carsten mentioned the deal is on track, closing in Q4 2025, and accretive to adjusted EBITDA and cash margins.

Q: Jason Tilchen asked about computer vision.

A: Carsten discussed computer vision covering ~90% of events, driving new products and data points.

Q: David Katz asked about in-play gating factors and U.S. market.

A: Carsten said gating factor is marketing, not technology, and U.S. will adapt like international markets.

Q: Jordan Bender asked about operating leverage.

A: Craig Felenstein talked about revenue growth, cost visibility, and incremental margins expanding.

Q: Michael Hickey asked about variables affecting 15% CAGR.

A: Craig Felenstein mentioned market expansion, product opportunities, and adjacent markets.

Q: Bernie McTernan asked about Marketing Services scaling.

A: Carsten mentioned continuing execution, reducing costs, and Fan ID product.

Q: Clark Lampen asked about LiveMatch Tracker and share repurchase.

A: Carsten talked about product evolution, and Craig Felenstein on capital allocation.

Q: Samuel Nielsen asked about MLB and NBA products.

A: Carsten mentioned deep data driving live markets, and NBA products integrated.

Q: Steve Pizzella asked about live betting migration and hold rates.

A: Carsten talked about fast-moving sports, U.S. adaptation, and hold rates affected by parlays.