Sportradar Group Ag · NASDAQ:SRAD
Sportradar — Q1 2025 Earnings Presentation
34 slides from Sportradar's earnings presentation, May 12, 2025
Slide 1: Q1 2025 Earnings
Q1 2025 EARNINGS | May 12, 2025
Slide 2: Disclaimer
DISCLAIMER Certain statements in this presentation may constitute “forward-looking” statements and information within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the U.S. Private Securities Litigation
Slide 3: Delivered Record Performance and Margin Expansion
DELIVERED RECORD PERFORMANCE AND MARGIN EXPANSION Achieved record quarterly revenue of €311 million, up 17% YoY, grew AEBITDA1 25%, expanded 1 AEBITDA margin1 to 18.9% and generated free cash flow1 of €32 million. Enhanced depth and breadth of sports rights coverage with the extension of MLB partner
Slide 4: Q1 2025 Financial Highlights
Q1 2025 FINANCIAL HIGHLIGHTS Strong Execution with Double-Digit Revenue Growth, Margin Expansion & Significant Cash Flow Q1 2025 FINANCIAL HIGHLIGHTS Revenue Adjusted EBITDA Free Cash Flow +17% +25% €32MM €311MM €59MM vs. €0MM LY Net Retention Rate1 Adjusted EBITDA Free Cash Flow Margin Conversion 1
Slide 5: Achieved Record Quarterly Revenue
ACHIEVED RECORD QUARTERLY REVENUE (€MM) 5
Slide 6: Unmatched Breadth and Scale in the Global Sports Ecosystem
400 LEAGUES & FEDERATIONS UNMATCHED BREADTH AND 800 BETTING OPERATORS SCALE IN THE GLOBAL SPORTS ECOSYSTEM 900 MEDIA / TECH PARTNERS MATCHES ANNUALLY, ~1MM COVERING ~ 85 SPORTS 6
Slide 7: Key Elements of Our Revenue Growth Strategy
KEY ELEMENTS OF OUR REVENUE GROWTH STRATEGY Capitalize on Drive Take Rate Expand into Drive Innovation & Market Growth Including Capturing Adjacent Markets Reduce Growth with Our Depth, Additional Share of In- with Primary Focus on Barriers Breadth, & Scale Play Betting iGaming by Leveraging Technol
Slide 8: Expanding Global Markets Provides Strong Tailwind
EXPANDING GLOBAL MARKETS PROVIDES STRONG TAILWIND • Global sports betting TAM provides strong tailwind, with GGR Global TAM expected to forecast to grow at an 11% CAGR through 2027. grow at an • Europe continues to grow strongly with expected CAGR of 9%. • Established a strong position in the U.S.,
Slide 9: Moving Clients Deeper into Product and Content Value Chain
MOVING CLIENTS DEEPER INTO PRODUCT AND CONTENT VALUE CHAIN INCREASES TAKE RATE MARKETING STREAMING SERVICES & BETTING BETTING ENGAGEMENT MANAGED PLATFORM TRADING SOLUTIONS SERVICES (MTS) LIVE TAKE-RATE ODDS LIVE PRE-MATCH DATA DATA & ODDS CLIENT VALUE 9
Slide 10: Driving Take Rate in Soccer Through Unparalleled Coverage
DRIVING TAKE RATE IN SOCCER THROUGH UNPARALLELED COVERAGE AND ENHANCED PRODUCT OFFERING LEAGUE PARTNERS SOCCER FAN ENGAGEMENT SOLUTIONS Virtualized Live Match Tracker Product Coverage Betting Opportunities t 150K 190 250 Matches Pre-match In-play UPCOMING PRODUCT LAUNCHES: 4Sight Streaming, tPRO Alp
Slide 11: Driving Take Rate in Basketball Through Deeper Fan Engagement
DRIVING TAKE RATE IN BASKETBALL THROUGH DEEPER FAN ENGAGEMENT LEAGUE PARTNERS NBA FAN ENGAGEMENT SOLUTIONS 1,800 Player & micro market betting opportunities per match 50M Virtualized Live Match Tracker Product Virtualized Live Match Tracker t viewing sessions in 1Q 2025 ~3.5% Click-through rate to s
Slide 12: Extending Marketing Services to Adjacent iGaming Market
DRIVING REVENUE UPSIDE BY EXTENDING OUR EXISTING MARKETING SERVICES TO ADJACENT iGAMING MARKET Momentum in adjacent markets iCASINO already being established SOCIAL CASINO Cross-selling marketing services into our closest 84 21% IGAMING adjacent markets iCasino Brands Of total Marketing OPERATORS Re
Slide 13: Long-Term Sports Rights Deals Provide Cost Visibility
AS REVENUE EXPANDS LONG-TERM SPORTS RIGHTS DEALS PROVIDE STRONG COST VISIBILITY Average term remaining for select major contracts ~6 yrs • Disciplined and strategic, with a diverse portfolio of exclusive global sports content, including basketball, baseball, soccer, hockey and tennis. • Secured majo
Slide 14: Extending and Expanding MLB Relationship
EXTENDING AND EXPANDING MLB RELATIONSHIP 71M • Extended and expanded partnership 8 years, through 71M 71M League attendance the 2032 season. MLB MBL League League attendance attendance 1 • Now the exclusive distributor MLB’s ultra-low latency official data, media content and AV content. • MLB has ta
Slide 15: Agreement to Acquire IMG ARENA
<<< AGREEMENT TO ACQUIRE IMG ARENA << <<<
Slide 16: IMG ARENA Transaction Summary
IMG ARENA TRANSACTION SUMMARY • Sportradar has agreed to acquire IMG Arena’s portfolio of highly strategic sports betting rights: • Will add depth & breadth in key betting sports including tennis, soccer & basketball. RIGHTS ACQUIRED • Includes 14 sports from 70+ global rightsholders. • Covers ~39,0
Slide 17: IMG ARENA Acquisition to Drive Greater Coverage Across All Metrics
IMG ARENA ACQUISITION TO DRIVE GREATER COVERAGE ACROSS ALL METRICS Approx. 70% of rights spread across top 3 most bet on global sports including basketball, soccer and tennis • Will seamlessly integrate into 14 Sports our platform, maximizing monetization and value 70+ Rightsholders • Highly complem
Slide 18: Financial Results
sp rtradar SPORTS TECHNOLOGY. REIMAGINED. FINANCIAL RESULTS iv}
Slide 19: Delivered Strong Revenue and Profitability
DELIVERED STRONG REVENUE AND PROFITABILITY CONSOLIDATED REVENUE (€MM) CONSOLIDATED ADJUSTED EBITDA (€MM) KEY QUARTERLY TAKEAWAYS • Achieved record revenue of €311mm, up 17%, due to strong client spending with U.S. revenues reaching 28% of mix. • Grew Adjusted EBITDA 25% YoY to €59mm, driven by highe
Slide 20: Summary of Revenue to Adjusted EBITDA
SUMMARY OF REVENUE TO ADJUSTED EBITDA (€MM) Q1 2024 Q1 2025 Revenue 266 311 Sport rights expense (91) (104) Adjusted purchased services1 (35) (44) Adjusted personnel expenses1 (70) (80) Adjusted other operating expenses1 (23) (24) Adjusted EBITDA 47 59 Adjusted EBITDA margin (%) 17.7% 18.9% 1 Non-IF
Slide 21: Betting Technology & Solutions
BETTING TECHNOLOGY & SOLUTIONS REVENUE (€MM) KEY QUARTERLY TAKEAWAYS • Betting Technology and Solutions revenue increased 14% YoY, primarily driven by: • Betting and Gaming Content grew €22 million or 13%, benefiting from customer uptake of additional content and products and U.S. market growth. • M
Slide 22: Sports Content, Technology & Services
SPORTS CONTENT, TECHNOLOGY & SERVICES REVENUE (€MM) KEY QUARTERLY TAKEAWAYS • Sports Content, Technology and Services revenue increased 33% YoY, primarily driven by: • Marketing and Media Services grew €12 million, up 36%, led by higher ad:s revenue as several sportsbooks increased spending on marke
Slide 23: Sport Rights Expenses and Purchased Services
SPORT RIGHTS EXPENSES AND PURCHASED SERVICES SPORT RIGHTS EXPENSES1 (€MM) KEY QUARTERLY TAKEAWAYS 104 • Sport rights expenses were €104 million, 91 up €13 million or 14% YoY, down ~80 bps as a percent of revenues, driven ▲ primarily by the success of our ATP 14% content. • Adjusted purchased service
Slide 24: Personnel Expenses and Other Operating Expenses
PERSONNEL EXPENSES AND OTHER OPERATING EXPENSES ADJUSTED PERSONNEL EXPENSES (€MM) KEY QUARTERLY TAKEAWAYS • Adjusted personnel expenses were €80 million, up €11 million or 16% YoY as we ▲ continue to focus any new headcount on 16% driving profitable growth initiatives. • Adjusted other operating exp
Slide 25: Cost Profile and Drivers of Operating Leverage
COST PROFILE AND DRIVERS OF OPERATING LEVERAGE ADJUSTED EBITDA MARGIN & EXPENSES AS A % OF REVENUE KEY TAKEAWAYS • Projecting 200 basis points of EBITDA margin expansion in 2025, driven by operating leverage from both sport rights and other expenses. • On track for third consecutive year of increasi
Slide 26: Strong Cash Generation and Liquidity Position
STRONG CASH GENERATION AND LIQUIDITY POSITION Free Cash Flow (€MM) Total Liquidity (€MM) Revolver Cash and cash equivalents KEY TAKEAWAYS • Generated €32 million in Free Cash 578 Flow in Q1, translating to 54% 32 568 conversion rate. 220 • Strong balance sheet with increasing liquidity position and
Slide 27: FY2025 Outlook
FY2025 OUTLOOK 2025 Guidance Metric (€MM) 2024 Actual Target YoY Increase at least at least Revenue €1,107 million €1,273 million 15% growth Adjusted EBITDA €222 million €281 million 26% growth Adjusted EBITDA margin 20.1% 22.1% 200 bps expansion Conversion rate Free Cash Flow Conversion 53% >53% ab
Slide 28: Year Outlook
3 YEAR OUTLOOK Metric (€MM) 2024 3 YR OUTLOOK 2027E at least Revenue € 1.1 billion 15% CAGR ~ € 1.7 billion Adjusted EBITDA € 222 million 27% CAGR ~ € 455 million Adjusted EBITDA Margin 20% +700bps 27% Free Cash Flow € 118 million 33% CAGR ~ € 275 million Free Cash Flow Conversion 53% +700bps 60% No
Slide 29: Appendix
sp rtradar SPORTS TECHNOLOGY. REIMAGINED. APPENDIX iv}
Slide 30: Non-IFRS Financial Measures and Operating Metric
NON-IFRS FINANCIAL MEASURES AND OPERATING METRIC We have provided in this presentation financial information that has not been prepared in accordance with IFRS, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted purchased services, Adjusted personnel expenses, Adjusted other operating expen
Slide 31: Non-IFRS Financial Measures and Operating Metrics
NON-IFRS FINANCIAL MEASURES AND OPERATING METRICS We present Adjusted purchased services, Adjusted personnel expenses, and Adjusted other operating expenses (together, "Non-IFRS expenses") because management utilizes these financial measures to manage its business on a day-to-day basis and believes
Slide 32: P&L and Adjusted EBITDA Reconciliation
P&L AND ADJUSTED EBITDA RECONCILIATION Three-Month Period Ended Three-Month Period Ended March 31, March 31, in €'000, except share and per share data 2025 2024 in €'000 2025 2024 Revenue 311,231 265,894 Profit (loss) for the period 24,338 (649) Personnel expenses (102,356) (79,567) Finance income (
Slide 33: IFRS Expenses to Non-IFRS Expenses Bridge
IFRS EXPENSES TO NON-IFRS EXPENSES BRIDGE Three-Month Period Ended March 31, in €'000 2025 2024 Non-capitalized sport right expenses 32,331 26,072 Amortization of capitalized sport rights 71,699 64,871 Total sport rights expenses 104,030 90,943 Purchased services 48,989 39,146 Less: capitalized exte
Slide 34: Free Cash Flow Reconciliation
FREE CASH FLOW RECONCILIATION Three-Month Period Ended March 31, in €'000 2025 2024 Net cash from operating activities 102,246 67,179 Acquisition of intangible assets (67,325) (63,444) Acquisition of property plant and equipment (972) (1,768) Payment of lease liabilities (1,999) (1,999) Free cash fl