Sportradar Group AG Q4 FY2024 earnings call

• Acquired IMG ARENA and its global sports betting rights portfolio, enhancing coverage in key sports like tennis, soccer, and basketball, expected to be immediately accretive to business and margins.
• Strong content portfolio with broad sports coverage, long-term rights secured for major sports, and partnerships like with Major League Baseball.
• Growth in Betting Technology & Solutions with 21% revenue growth in Q4 2024, driven by betting and gaming content, streaming, and odds/live data.
• Managed Trading Services (MTS) had turnover of €35 billion in 2024 with a 10.7% margin, serving over 250 books and 500 sportsbook brands.
• Expansion in Brazil with an office in São Paulo, signing 35 sportsbook clients for MTS and piloting iGaming marketing services.
• Advancements in AI and technology, including automated data collection, hyperpersonalized products, and innovations like 4Sight and micro markets.

For the full year 2024, total company revenue was €1.1 billion, an increase of €229 million or 26% compared to 2023. Adjusted EBITDA was €222 million, up €56 million or 33% year-over-year. In the fourth quarter, record revenues of €307 million were achieved, up €54 million or 22% compared to the fourth quarter of 2023. Betting Technology & Solutions revenue was €247 million, delivering 21% growth, driven by a 30% year-on-year increase in betting and gaming content. Sports Content, Technology & Services group revenue was €60 million, increasing 23% year-on-year. The U.S. revenues increased to 24% of total revenue, up 500 basis points from the previous year.

• For 2025, anticipates total company revenue of at least €1.273 billion, representing at least 15% year-over-year growth.
• Anticipates adjusted EBITDA of €281 million, a 26% year-over-year growth with at least 200 basis points of adjusted EBITDA margin expansion.
• The IMG acquisition's impact will be incorporated into guidance once closed, but it is expected to accelerate revenue, adjusted EBITDA, and free cash flow generation and be margin accretive.
• Margins expected to be in the high teens in the first half of 2025 and accelerate in the second half, with the highest margins in the third quarter.

• Regulatory review in certain international territories for the IMG ARENA acquisition.
• Uncertainties associated with forward-looking statements and potential differences between actual results and forecasts as outlined in the company's annual report on Form 20-F and Form 6-K filed with the SEC.

Q: Curious about the IMG deal's balance sheet, liability, and revenue synergy potential.

A: Carsten Koerl discussed the strategic and commercial benefits of the IMG deal, while Craig Felenstein mentioned acquiring assets and liabilities, with opportunities for operational synergies and margin expansion.

Q: About Brazil's MTS success.

A: Carsten Koerl attributed it to the strong team in Brazil, the 35 signed sportsbook clients, and the iGaming pilot with a 360-degree scheme.

Q: On IMG's revenue, EBITDA, and margin accretion.

A: Craig Felenstein stated the acquisition would likely result in higher revenue growth and margin expansion by leveraging the assets across the global distribution base.

Q: Average term remaining for IMG's major contracts.

A: Carsten Koerl said roughly around 3 years.

Q: On share repurchases and acceleration.

A: Craig Felenstein mentioned the company's cash position, free cash flow, and potential to return capital to shareholders more rapidly once the trading window opens after the IMG deal closes.