Sportradar Group AG – $SRAD

Instructions: Buy Sportradar Group AG (SRAD), paying no more than $23.05, and add it to your Momentum portfolio.

Details:
Sportradar Group AG (NASDAQ: SRAD), founded in 2001, is a leading global sports technology company that creates immersive experiences for sports fans and bettors. Positioned at the intersection of the sports, media, and betting industries, the company provides sports federations, news media, consumer platforms, and sports betting operators with a comprehensive range of solutions to help grow their businesses.

As the trusted partner of organizations like the NBA, NHL, MLB, NASCAR, UEFA, FIFA, Bundesliga, ICC, and ITF, Sportradar covers close to a million events annually across all major sports. With deep industry relationships and expertise, Sportradar is not just redefining the sports fan experience; it also safeguards sports through its Integrity Services division and advocacy for an integrity-driven environment for all involved.

Business Overview
Sportradar operates through two primary business segments:

1. Betting Technology & Solutions: This segment offers a suite of products and services tailored for betting operators, including:
   • Sports Data and Odds: Comprehensive data feeds and odds suggestions for thousands of games across various sports.
     
   • Engagement Tools: Live streams, gaming products, and casino solutions to enhance user engagement.
     
   • Trading & Risk Management: Managed Trading Services and operational insights to assist operators in managing their sportsbooks effectively.
     
   • Marketing Services: Tools for acquisition, awareness, retention, and personalization to help operators grow their customer base.
     
   • Managed Betting Services: Provides risk and liability management solutions through proprietary AI-driven platforms.
     
   • Betting & Gaming Content: Enhances sportsbook offerings with premium audiovisual and gaming solutions.
     
2. Sports Content, Technology & Services: This segment caters to media companies, sports teams, leagues, and federations by providing:
   • Data & Content: Sports Data APIs, analytics platforms, and editorial content to enrich sports coverage.
     
   • Broadcast Solutions: Broadcast graphics, content, and research services to enhance sports broadcasting.
     
   • Audiovisual Services: Media rights management, production services, and OTT solutions for delivering sports content.
     
   • Marketing Services: Fan engagement tools and sponsorship activation solutions to deepen fan connections.
     
   • Integrity Services: Provides consulting, monitoring, and analytics to ensure fair play and safeguard sporting events.

Additionally, Sportradar plays a critical role in the global sports ecosystem by partnering with over 400 leagues, 800 betting operators, and 900 media and technology companies. The company has secured long-term exclusive sports rights contracts, offering a competitive advantage through its unmatched depth and breadth of data.

Financial Performance
Sportradar has demonstrated robust financial growth in recent periods. Key highlights include:

• Third Quarter 2024:
  • Revenue: Increased by 27% year-over-year to $276 million.
    
  • Profit: Grew by $36 million to $40 million, representing 14.5% of revenue.
    
  • Adjusted EBITDA: Rose by 30% to $72 million, with an adjusted EBITDA margin of 25.8%.
  • Net Cash from Operating Activities: Increased by 55% to $129 million.
    
  • Free Cash Flow: Surged by 192% to $68 million.
    
  • Customer Net Retention Rate: Improved to 126%, indicating strong client retention and expansion.

The company maintains a strong revenue mix, with 83% of its earnings derived from betting technology and solutions and 17% from sports content, technology, and services. Additionally, 69% of revenue comes from variable share agreements, while 31% is generated from fixed fees.

Revenue and Earnings Growth Rates
Sportradar has consistently achieved significant revenue and earnings growth:

• Revenue Growth:
  • 2023: The company reported a 22% year-over-year increase in revenue, reaching $1.16 billion.
  • 2024 Outlook: Sportradar has raised its full-year guidance, anticipating at least a 24% revenue growth to $1.18 billion.
    
• Adjusted EBITDA Growth:
  • 2023: Adjusted EBITDA grew by 22% to $221 million.
  • 2024 Outlook: The company projects at least a 29% growth in adjusted EBITDA, reaching $234 million.

These upward trends underscore Sportradar’s strong market position and its success in scaling operations efficiently. The company has also strategically positioned itself to capitalize on the growing sports betting market, which is projected to expand at an 11% CAGR through 2027.

Financial Condition
As of the latest reports, Sportradar maintains a solid financial position:

• Total Assets: $2.62 billion as of June 30, 2024.
  
• Total Debt: $58 million, indicating a conservative leverage ratio.
  
• Cash Flow: The significant increase in free cash flow highlights the company’s enhanced liquidity and financial flexibility.
  
• Total Liquidity: $640 million, comprising $420 million in cash and cash equivalents and $220 million in an undrawn credit facility.

Sportradar operates with a disciplined capital allocation strategy, investing in technological innovation and maintaining financial strength to drive long-term shareholder value. The company has also announced a $200 million share repurchase program, reflecting confidence in its future growth prospects.

Market Performance
As of February 13, 2025, Sportradar’s stock (SRAD) was trading at $22.17, with a market capitalization of approximately $6.61 billion. The stock has exhibited a 52-week range between $8.08 and $12.97, reflecting investor confidence in the company’s growth trajectory.

Conclusion
Sportradar Group AG has established itself as a pivotal player in the sports technology and betting industry. With a diverse portfolio of products and services, strategic partnerships with major sports organizations, and a track record of strong financial performance, the company is well-positioned to continue its growth and deliver value to stakeholders in the evolving sports ecosystem. Its commitment to innovation, AI-driven technology, and long-term industry partnerships provides a competitive edge in an expanding global market.