Download PDF

1. Company Snapshot

1.a. Company Description

Sportradar Group AG, together with its subsidiaries, provides sports data services for the sports betting and media industries in the United Kingdom, the United States, Malta, Switzerland, and internationally.Its sports data services to the bookmaking under the Betradar brand name, and to the international media industry under the Sportradar Media Services brand name.The company offers mission-critical software, data, and content to sports leagues, betting operators, and media companies.


In addition, the company provides sports entertainment, gaming solution, and sports solutions, as well as live streaming solution for online, mobile, and retail sports betting.Further, its software solutions address the entire sports betting value chain from traffic generation and advertising technology to the collection, processing, and extrapolation of data and odds, as well as to visualization solutions, risk management, and platform services.Sportradar Group AG was incorporated in 2001 and is headquartered in St. Gallen, Switzerland.

Show Full description

1.b. Last Insights on SRAD

Sportradar Group AG's recent performance was negatively impacted by its Q3 earnings miss, with quarterly earnings of $0.08 per share, falling short of the Zacks Consensus Estimate of $0.10 per share. The company's valuation, with a Forward EV/EBITDA of 19.38 and P/E of 50.26, leaves little room for error. Additionally, a major shareholder, Global IMC, sold 253,168 shares in the third quarter, potentially signaling a lack of confidence. Integration risks from its acquisition of IMG Arena also pose a challenge.

1.c. Company Highlights

2. Sportradar's Q3 Earnings: A Strong Performance

Sportradar Group's third-quarter revenue reached a record EUR 292 million, a 14% increase from the previous year, driven by higher uptake from existing partners, strong U.S. market growth, and trading results from managed trading services. Adjusted EBITDA grew 29% to EUR 85 million, with a record adjusted EBITDA margin of 29%. The company generated EUR 149 million of free cash flow, representing a strong conversion of 72%. The actual EPS came out at '0.08', slightly lower than estimates at '0.1'.

Publication Date: Nov -10

📋 Highlights
  • Record Revenue Growth:: Q3 revenue hit EUR 292 million, up 14% YoY, driven by U.S. growth (21%), RoW (13%), and managed trading services (25% turnover increase).
  • Strong EBITDA Margin Expansion:: Adjusted EBITDA rose 29% to EUR 85 million, with a record 29% margin, and expects 250 bps additional margin expansion by 2026 post-IMG Arena acquisition.
  • High Free Cash Flow Conversion:: Generated EUR 149 million FCF in Q3 (72% conversion), with EUR 149 million FCF in first 9 months of 2024 (72% conversion).
  • Full-Year Guidance Raised:: Revenue forecast increased to EUR 1.29 billion (+17% YoY) and adjusted EBITDA to EUR 290 million (+30% YoY), supported by IMG Arena synergies.
  • Strategic M&A & Share Repurchase:: Acquired IMG Arena for EUR 225 million to enhance content and margins, while boosting share buyback authorization to EUR 300 million (up EUR 100 million).

Revenue Growth and Margin Expansion

Revenue growth was broad-based, with U.S. revenue up 21% and Rest of World revenue up 13%. The company's customer net retention rate was 114%, demonstrating its ability to deepen client relationships through cross-selling and upselling. The acquisition of IMG Arena is expected to accelerate growth, be accretive to adjusted EBITDA margins, and increase free cash flow conversion.

Business Highlights and Future Prospects

The company continues to make significant progress in its marketing services business, with record volumes on its DSP and robust performance across multiple channels. Sportradar recently signed deals with major media platforms, including DAZN, Google, and Yahoo!, to integrate its data APIs, streaming products, and advanced analytics. The acquisition of IMG Arena adds premium content and enhances Sportradar's global portfolio and capabilities.

Regulatory Environment and Prediction Markets

The company is actively involved in discussions around the regulation of online sports betting in the US, with a focus on creating a fair balance between competing interests. Carsten Koerl, CEO, notes that online sportsbooks want equal competition, and the current situation is leading to a classification of some sports betting as "illegal." The company believes a clear regulatory framework is needed, including rules on player protection, responsible gaming, and sports integrity.

Valuation and Outlook

With a P/E Ratio of 54.41 and an EV/EBITDA of 10.34, the market seems to be pricing in a significant growth premium. Analysts estimate next year's revenue growth at 20.8%. The company's strong liquidity position, with EUR 360 million in cash and cash equivalents and no debt outstanding, provides a solid foundation for future investments and share repurchases. The Board has approved a EUR 100 million increase to the share repurchase program, bringing the total authorization to EUR 300 million.

3. NewsRoom

Card image cap

Sportradar Raised Earnings Outlook but Lost a Holder in an $8.7 Million Fourth-Quarter Exit

13:41

Source:

Card image cap

Federated Hermes Inc. Sells 156,740 Shares of Sportradar Group AG $SRAD

Jan -29

Source: defenseworld.net

Card image cap

Sportradar: One Of My Top Bets For 2026

Jan -29

Source: seekingalpha.com

Card image cap

American Outdoor Brands (NASDAQ:AOUT) and Sportradar Group (NASDAQ:SRAD) Head-To-Head Review

Jan -20

Source: defenseworld.net

Card image cap

Osaic Holdings Inc. Purchases 109,790 Shares of Sportradar Group AG $SRAD

Dec -22

Source: defenseworld.net

Card image cap

This Stock Is Up 38% in the Past Year but Just Saw a Big Portfolio Cut

Dec -20

Source: fool.com

Card image cap

Sportradar: An Unseen Engine Driving Global Sports, But Overvalued

Dec -17

Source: seekingalpha.com

Card image cap

Sportradar Shareholders Elect Breon Corcoran, CEO of IG Group, to Board of Directors

Dec -15

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.51%)

6. Segments

Rest of the World Betting

Expected Growth: 12%

The 12% growth in Rest of the World Betting from Sportradar Group AG is driven by increasing adoption of online sports betting, rising popularity of international sports leagues, and growing demand for data-driven insights in emerging markets. Additionally, regulatory reforms and partnerships with local operators are expanding the addressable market, further fueling growth.

Rest of the World Betting Audiovisual

Expected Growth: 13%

The 13% growth of Rest of the World Betting Audiovisual from Sportradar Group AG is driven by increasing demand for live sports content, expansion into new markets, and strategic partnerships with sports leagues and betting operators. Additionally, advancements in audiovisual technology and rising adoption of online betting platforms contribute to the segment's growth.

United States

Expected Growth: 14%

United States, a key market for Sportradar Group AG, is driving 14% growth due to increasing demand for sports data and analytics, fueled by the rise of online sports betting, fantasy sports, and media rights. Additionally, the growing popularity of American football, basketball, and baseball, as well as the company's partnerships with major sports leagues, are contributing to this growth.

All Other

Expected Growth: 11%

All Other segment from Sportradar Group AG, with 11% growth, is driven by increasing demand for sports data and analytics, expansion into new markets, and strategic partnerships. Additionally, growth in fantasy sports and esports, as well as the company's investments in AI and machine learning, contribute to this segment's rapid expansion.

7. Detailed Products

Sports Data Feeds

Real-time sports data feeds providing detailed information on various sports, including scores, schedules, and statistics.

Sports API

Application Programming Interface (API) providing access to sports data, including live scores, schedules, and statistics.

Sports Content Services

Customized sports content solutions, including editorial, video, and audio content, for media companies and sports organizations.

Sports Integrity Services

Monitoring and detection services to identify and prevent match-fixing and other forms of sports corruption.

Sports Betting Services

Comprehensive solutions for sports betting operators, including odds feeds, trading tools, and risk management services.

Fantasy Sports Solutions

Customized fantasy sports solutions, including data feeds, platform development, and content services.

Digital Platforms

Customized digital platforms for sports organizations, including websites, mobile apps, and over-the-top (OTT) streaming services.

8. Sportradar Group AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Sportradar Group AG has a medium threat of substitutes due to the presence of alternative sports data providers, but the company's strong brand recognition and partnerships with major sports leagues and organizations mitigate this threat.

Bargaining Power Of Customers

Sportradar Group AG has a low bargaining power of customers due to its strong market position and the lack of alternative providers for its sports data and analytics services.

Bargaining Power Of Suppliers

Sportradar Group AG has a medium bargaining power of suppliers due to its dependence on sports leagues and organizations for data and content, but the company's strong relationships and partnerships mitigate this threat.

Threat Of New Entrants

Sportradar Group AG has a high threat of new entrants due to the growing demand for sports data and analytics, and the relatively low barriers to entry in the industry.

Intensity Of Rivalry

Sportradar Group AG operates in a highly competitive industry with several established players, leading to a high intensity of rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 5.46%
Debt Cost 14.05%
Equity Weight 94.54%
Equity Cost 14.05%
WACC 14.05%
Leverage 5.78%

11. Quality Control: Sportradar Group AG passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ATOSS Software

A-Score: 4.9/10

Value: 0.2

Growth: 8.9

Quality: 9.5

Yield: 3.8

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
Sportradar

A-Score: 4.4/10

Value: 1.7

Growth: 8.1

Quality: 6.9

Yield: 0.0

Momentum: 7.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Temenos

A-Score: 4.2/10

Value: 2.5

Growth: 3.8

Quality: 7.6

Yield: 1.9

Momentum: 8.0

Volatility: 1.7

1-Year Total Return ->

View Full Report
Stock-Card
SoftwareONE

A-Score: 4.1/10

Value: 5.8

Growth: 1.2

Quality: 4.9

Yield: 5.6

Momentum: 5.5

Volatility: 1.7

1-Year Total Return ->

View Full Report
Stock-Card
Qt

A-Score: 3.9/10

Value: 3.6

Growth: 9.6

Quality: 8.8

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Monday

A-Score: 2.9/10

Value: 2.8

Growth: 9.1

Quality: 4.9

Yield: 0.0

Momentum: 0.5

Volatility: 0.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.12$

Current Price

18.12$

Potential

-0.00%

Expected Cash-Flows