Leading international sports technology business Sportradar Group AG (NASDAQ: SRAD) (“Sportradar” or the “Company”), which focuses on developing immersive experiences for sports fans and bettors, today revealed its fourth quarter financial results, which ended on December 31, 2024.
“We are pleased with our strong execution in 2024, achieving record revenue, operating margins, and free cash flow generation,” stated Sportradar CEO Carsten Koerl. Crucially, we kept improving our primary competitive advantages, such as expanding the scope and diversity of our content portfolio and further developing our line of products.
Regarding content, we now have all of our main rights locked in for an average of six years thanks to the extension and growth of our main League Baseball contract, which gives us excellent cost visibility.
Additionally, we will expand our coverage of some of the most bet-on sports in the world with the recently announced agreement to purchase IMG ARENA’s sports rights portfolio.
We also expanded our product line this past year, introducing several award-winning items that enhance our portfolio of best-in-class products and let fans get closer to their favorite sports.
Crucially, we are at a turning point for multi-year margin expansion and rising cash flow as we increase our topline, setting us up to provide significant shareholder value for years to come.”
YEAR-END AND FOURTH QUARTER REVENUE BY PRODUCT GROUP
| Three-Month Period Ended December 31, | Year Ended December 31, | ||||||||||||||||||
| in € thousands (unaudited) | 2024 | 2023 | Change | % | 2024 | 2023 | Change | % | |||||||||||
| Revenue by product | |||||||||||||||||||
| Betting & Gaming Content | 191,783 | 147,747 | 44,036 | 30 | % | 707,119 | 530,099 | 177,020 | 33 | % | |||||||||
| Managed Betting Services | 55,145 | 55,870 | (725 | ) | (1 | )% | 199,871 | 173,391 | 26,480 | 15 | % | ||||||||
| Betting Technology & Solutions | 246,928 | 203,617 | 43,311 | 21 | % | 906,990 | 703,490 | 203,500 | 29 | % | |||||||||
| Marketing & Media Services | 44,282 | 36,445 | 7,837 | 22 | % | 146,919 | 126,629 | 20,290 | 16 | % | |||||||||
| Sports Performance | 11,051 | 10,608 | 443 | 4 | % | 40,366 | 39,758 | 608 | 2 | % | |||||||||
| Integrity Services | 4,809 | 1,916 | 2,893 | 151 | % | 12,281 | 7,744 | 4,537 | 59 | % | |||||||||
| Sports Content, Technology & Services | 60,142 | 48,969 | 11,173 | 23 | % | 199,566 | 174,131 | 25,435 | 15 | % | |||||||||
| Total Revenue | 307,070 | 252,586 | 54,484 | 22 | % | 1,106,556 | 877,621 | 228,935 | 26 | % | |||||||||
| Revenue by geography | |||||||||||||||||||
| Rest of World | 232,298 | 199,738 | 32,560 | 16 | % | 843,791 | 711,613 | 132,178 | 19 | % | |||||||||
| United States | 74,772 | 52,848 | 21,924 | 41 | % | 262,765 | 166,008 | 96,757 | 58 | % | |||||||||
| Total Revenue | 307,070 | 252,586 | 1,106,556 | 877,621 | |||||||||||||||
YEAR-END FINANCIAL OUTCOMES
Income
Due to the 29% rise in Betting Technology & Solutions and the 15% growth in Sports Content, Technology & Services, the total revenue for the whole year was €1,107 million, up €229 million or 26% over the previous year.
Revenues of €907 million for Betting Technology & Solutions increased 29% year over year, mostly due to a 33% increase in Betting & Gaming Content, which benefited from both new and existing customers’ use of the products, premium pricing from the NBA and new ATP product offerings, and general robust growth in the U.S. market.
Strong growth in Managed Trading Services due to higher trading margins and increased betting activity from both new and existing clients drove a 15% increase in Managed Betting Services, which totaled €200 million.
With a range of sportsbooks investing in marketing campaigns throughout the year, Sports Content, Technology & Services sales of €200 million grew 15% year over year, mainly due to a 16% gain in Marketing & Media Services, which saw strength in both European and North American ad revenue.
Globally, the company’s sales increased significantly, with the US up 58% and the rest of the world up 19%. Due to sustained market expansion, increased consumer use of our products, and premium pricing, United States sales for the entire year accounted for 24% of total company revenue, up from 19% the year before.
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Profit for the time frame
The full-year profit of €34 million was consistent with the previous year. Unrealized currency changes related to the U.S. dollar-denominated sport rights were the main cause of the good operating results, which were largely offset by a foreign currency loss of €38 million for the entire year as opposed to a gain of €23 million the previous year.
Along with an income tax gain of €11 million, which was mostly driven by the realization of deferred tax assets, the current year also saw higher financing costs, mostly as a result of our new cooperation agreements with the ATP, NBA, and Bundesliga.
EBITDA Adjusted
Adjusted EBITDA for the entire year was €222 million, up €56 million or 33% from €167 million the year before. The 26% increase in revenue was the main driver of the increase, which was somewhat offset by higher sport rights costs mainly from the NBA and ATP partnership deals, higher services purchased as a result of investments in expanding our product line, and higher personnel costs mainly from an increase in headcount and a higher bonus accrual this year.
The financial results for the fourth quarter
Income
The fourth quarter’s total revenue of €307 million was up €54 million, or 22%, over the previous year. This rise was primarily driven by the 21% growth in Betting Technology & Solutions and the 23% growth in Sports Content, Technology & Services.
With a 30% increase in Betting & Gaming Content, Betting Technology & Solutions’ revenues of €247 million were up 21% year over year. This increase was largely driven by the addition of new ATP content, which increased premium pricing, and the general robust growth of the U.S. market.
The impact of the one-time initial setup revenues from hardware deliveries for the new Taiwan Lottery deal a year ago more than offset the strong growth in Managed Trading Services from higher trading margins and increased betting activity from both new and existing clients, resulting in a 1% decline in Managed Betting Services revenues of €55 million.
With multiple sportsbooks investing in marketing efforts throughout the quarter, Marketing & Media Services saw a 22% spike in ad income, making up the majority of the €60 million increase in Sports Content, Technology & Services sales year over year.
Globally, the company’s sales increased significantly, with the US up 41% and the rest of the world up 16%. Due to ongoing market expansion, increased consumer use of our goods, and premium pricing, United States sales accounted for 24% of total company revenue in the fourth quarter, up from 21% in the same quarter last year.
Our ability to upsell and cross-sell to our clients, as well as the expansion of the US market, is demonstrated by our Customer Net Retention Rate of 127%, which rose both sequentially and from the previous year.
Loss for the time frame
The strong operating results were more than offset by a foreign currency loss of €38 million in the quarter compared to a €27 million gain last year, primarily due to unrealized currency fluctuations associated with the U.S. dollar-denominated sport rights. The period’s loss was €1 million, down €24 million, compared to a profit of €23 million in the same quarter last year. A €20 million income tax advantage, mostly from the recognition of deferred tax assets, and increased financing costs, mostly from our new ATP and Bundesliga partnership agreements, were also included in the current quarter.
EBITDA Adjusted
Quarter four Compared to €40 million in the same quarter last year, adjusted EBITDA increased by €21 million, or 53%, to €61 million. The 22% revenue growth was the main driver of the increase, which was somewhat offset by higher sport rights costs mainly from the ATP partnership deal, higher services purchased as a result of investments in expanding our product line, and higher personnel costs mainly from an increase in headcount and a higher bonus accrual this year.
Other Business Highlights
Declared that our collaboration with Major League Baseball (“MLB”) will be expanded and extended for a further eight years, starting with the 2025 season.
Across our global client network, Sportradar will be the only distributor of ultra-low latency official MLB data, media content, including MLB Statcast Data, and audiovisual content.
MLB and Sportradar will also work together to develop AI-powered solutions that use player monitoring data to produce highly customized and engaging fan experiences.
Declared that our collaboration with UEFA has been extended and expanded to include all UEFA Club and National team competitions, including over 900 high-profile matches—a 33% increase over the prior deal.
Declared a new, long-term collaboration with UTR Sports for the UTR Pro Tennis Tour, the premier tennis circuit for up-and-coming pros. The second most popular sport to wager on is tennis, and Sportradar receives a steady stream of tennis matches all year long from UTR.
For the 2024–2025 season, a range of cutting-edge products and solutions, such as 4Sight Streaming, emBET, Live Match Tracker, and sophisticated visualizations, were introduced in collaboration with the NBA.
Expanded this innovative offering to tennis from other well-liked sports like soccer and table tennis by introducing micromarkets for ATP tennis and basketball.
With the inclusion of affiliate marketing capabilities through XLMedia and the debut of new channels like sponsored search and audio, enhanced advertising marketing services are offering clients the most complete 360-degree solution.
Marked a significant turning point in Sportradar’s strategic growth into São Paulo, Brazil, and throughout Latin America by opening an office there.
Balance Sheet and Liquidity
As of December 31, 2024, the company had €348 million in cash and cash equivalents, up from €277 million on the same date in 2023.
Net cash used in investing activities (€255 million), mainly from the acquisition of additional sport rights (most notably its new NBA and ATP deals) and the acquisition of XLMedia’s assets, and net cash used in financing activities (€37 million), mostly from share repurchases, partially offset the increase in net cash generated from operating activities (€353 million) due to strong operating performance.
For the year that concluded on December 31, 2024, free cash flow was €118 million, up €67 million from €50 million during the same time last year.
The company’s total liquidity, including its undrawn credit facility, was €568 million on December 31, 2024, compared to €497 million on December 31, 2023, and there was no outstanding debt.
Annual Financial Outlook for 2025
Sportradar has set the following goals for their fiscal 2025 outlook:
- At least €1,273 million in revenue, which translates to a 15% annual rise
- At least €281 million in adjusted EBITDA, which translates to at least 26% annual growth
- An increase of at least 200 basis points in the adjusted EBITDA margin
- The free cash flow conversion rate is higher than the 53% threshold for 2024.
Due to the uncertainties surrounding the timing of the completion, the 2025 projection does not account for any impact from the proposed acquisition of IMG ARENA. After closing, guidance will be revised to reflect the uplift brought about by this purchase.
Plan for Repurchasing Shares
A $200 million share repurchase plan was approved by the Board of Directors in March 2024, and purchases were initiated in the second quarter of that year. For a total of $5.7 million, the company repurchased about 467 thousand shares during the quarter that ended on December 31, 2024. Under the plan, the Company repurchased 1.8 million shares for a total of about $20.3 million for the entire year 2024.
The Next Event
Sportradar said this morning that it and Endeavor Group Holdings, Inc. had reached a final agreement to buy IMG ARENA and its portfolio of international sports betting rights.
According to the deal, IMG ARENA will pay Sportradar $125 million in cash and make up to $100 million in cash prepayments to some of the sports rightsholders, for a total of $225 million in financial consideration (subject to usual purchase price adjustments). The Endeavor Group will not be obliged to receive any payment from Sportradar.
Sportradar will easily integrate and monetize these rights with its vast client network and highly scalable technological platform, creating additional value for partners, clients, and shareholders.
Sportradar’s strong revenue, adjusted EBITDA, and free cash flow growth will all be further accelerated by this merger, which will also instantly boost adjusted EBITDA margins.
Strategic partnerships with more than 70 rightsholders span about 39,000 official data events and 30,000 streaming events across 14 international sports on six continents, making up IMG’s portfolio of global betting rights.
Among other notable properties are the PGA Tour, Major League Soccer, the U.S. Open, Roland-Garros, Wimbledon, and the EuroLeague basketball.
The acquisition is anticipated to occur in the fourth quarter of 2025, subject to typical closing circumstances, such as regulatory clearances.
Details of the Webcast and Conference Call
Today, March 19, 2025, at 8:30 a.m. Eastern Time, Sportradar will have a conference call to review the results of the fourth quarter and the entire year 2024.
The earnings call can be accessed via Sportradar’s Investor Relations website for anyone who would want to watch it online. For a year following the end of the live event, the Company’s Investor Relations website will host an archived webcast along with the related slides.
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