Sportradar Group AG Q1 FY2026 earnings call

• CEO Karsten Kurl addressed recent short-seller reports, stating the company rejects unfounded allegations and has a robust compliance framework. • Repurchased approximately $90 million worth of shares in Q1, with a new $250 million enhanced open market repurchase program. • Welcome Samir Deen as COO, who brings experience in sports betting, gaming, and digital media. • Q1 revenues driven by strong performance in betting and gaming content, including IMG Arena rights. • Strong competitive position with over 1 million matches covered annually, and high uptake of IMG content by clients. • Integration of IMG content into core and next-gen products, with plans to stream over 700,000 matches in 2026. • PlayRadar launched as a dedicated iGaming brand with plans to expand in various markets. • Confidence in full-year guidance due to drivers like FIFA World Cup, prediction markets, and cross-selling opportunities.

Sport Radar delivered Q1 revenues of €347 million, an 11% increase year-over-year. Adjusted EBITDA was €66 million with a margin of 19%. Betting and gaming content was a key driver, with strong uptake of IMG content. Managed trading services saw turnover up 24% but was impacted by player-friendly outcomes. Sports content, technology, and services products had revenues of €59 million, a 4% decrease year-on-year. Revenue contribution: Betting and gaming content was a significant portion, with IMG content driving growth.

• Reaffirm full-year 2026 outlook with constant currency revenue growth of 23 to 25% (reported between 1.56 and 1.58 billion). • Adjusted EBITDA growth of 34 to 37% on constant currency basis (reported 390 million to 400 million) with ~200 to 225 basis points margin expansion. • Strong revenue growth expected in second and third quarters due to sporting events and IMG content inclusion. • Prediction market ecosystem and global customer renewals are key drivers for the year.

• Exposure to unregulated markets: Revenue mix has a low to mid-single digit percentage (5 to 13%) from operators in unregulated markets. • Allegations of working with illegal markets: Sting campaign at ICE involving a salesperson, but thorough KYC process before contract signing. • Sports outcomes impacting managed trading services: Unfavorable sporting outcomes in February affected managed trading services revenues but expected to normalize.

Q: Ryan Sigdahl asks about marketing services decline and guidance reaffirmation.

A: Marketing services is choppy, with operator spend shifts; confidence in guidance from marketing, IMG success, and prediction market opportunities.

Q: Ryan Sigdahl asks about revenue mix for black/gray market operators.

A: Black market not worked with; gray market revenue mix is low to mid-single digits (5 to 13%).

Q: Chad Bainan asks about AI implementations and prediction market constituents.

A: AI used in engineering for lead time reduction, operational automation; prediction market constituents include exchanges, market makers, brokers.

Q: Barry Jonas asks about interactions with league partners and regulators post-reports.

A: Overwhelming support from partners and regulators, ongoing contact with regulators.

Q: Jeff Stanchel asks about licensed B2B distributors and revenue materiality.

A: Licensed B2B distributors' revenue impact is low to mid-single digits of total revenues.

Q: Sean Kelly asks about normalizing MTS turnover and guidance changes.

A: MTS turnover healthy but outcome-dependent; guidance reaffirmed considering U.S. market softness, marketing spend, and IMG synergies.

Q: Mike Hickey asks about Sting campaign allegation.

A: Sting campaign at ICE involved a salesperson, but thorough KYC process before contract.

Q: Trey Bowers asks about Q2 guidance and prediction market cannibalization.

A: No Q2 guidance; prediction markets expand TAM, with little cannibalization of OSB business.

Q: Robin Farley asks about prediction market announcements and EBITDA components.

A: Soon to announce prediction market deals; EBITDA margin expansion despite revenue fluctuations.

Q: Sam Nielsen asks about FX headwinds and prediction market revenue.

A: FX headwinds to shake out after Q2; prediction market revenue impact depends on short-term announcements.

Q: Clark Lampin asks about KYC recourse and global customer renewals.

A: Recourse with B2B partners for negative events; global customer renewals ongoing with opportunities in back half.