Sportradar Group AG Q2 FY2025 earnings call

• Sportradar achieved all-time record quarterly revenues, up 14% year-over-year, demonstrating the strength of the business. - Benefited from the expansion of the global sports betting market, with 30% growth in the U.S. and 9% in the rest of the world. - Core betting business: Managed Trading Service (MTS) had 23% year-to-date turnover growth; 4Sight Streaming product gained traction in sports like tennis; expanded micro market offering. - Strengthened partnership with German Bundesliga soccer league, rolling out new in-play products. - Actively engaged with technology and media platforms to integrate data API, streaming products, etc. - Leveraged technology and AI to improve developer productivity and customer support quality.

Sportradar delivered all-time record quarterly revenues of $318 million, up 14% year-over-year. Betting Technology & Solutions revenue was $259 million, growing 12% year-over-year, accounting for approximately 81.45% of total revenue. Sports content, technology and services revenue was $59 million, increasing 22% year-over-year, making up around 18.55% of total revenue. Geographically, U.S. revenue was up 30% and Rest of World revenue was up 9% in the second quarter, with U.S. revenues expanding to 28% of the revenue mix.

• Raised full year outlook despite U.S. dollar weakness vs euro. Now anticipates revenues of at least EUR 1.278 billion, up at least 16% year-over-year. - Anticipates adjusted EBITDA of at least EUR 284 million, up at least 28% vs 2024. - Free cash flow conversion rate expected to be above 2024's level. - Pending acquisition of IMG ARENA's portfolio will accelerate revenue, adjusted EBITDA, and free cash flow, but current guidance does not account for its impact yet.

• Forward-looking statements involve risks and uncertainties, refer to risk factors in SEC filings. - Timing of sports rights payments may cause quarterly fluctuations in free cash flow.

Q: About the Club World Cup and MTS business, what was seen from a betting standpoint?

A: The World Cup was very good for MTS, with strong interest from media companies to drive traffic from betting to media space, and MTS saw a pickup as there was not much soccer content at that time.

Q: Competitor announced rights for European leagues, and about the pending IMG ARENA acquisition, any considerations?

A: The European leagues deal for IMG was loss-making, and it's a data rights deal without audiovisual inventory; we asked IMG to wind it up and settle, so it's not in the numbers prediction from IMG.

Q: On Rest of World performance and marketing spend pause, is it transient?

A: There's choppiness in the advertising business due to sportsbooks' spending on advertising opportunities, but year-to-date advertising business is up strongly and expected to have momentum in the back half of the year.

Q: On MTS business, distribution of new customers?

A: MTS has strong momentum, with a diversified cohort including Brazil, and nearly the same size pipeline in integration, expecting continued strong growth.