Sportradar raises 2025 revenue guidance to at least €1.29B and expands share repurchase amid IMG Arena integration

Earnings Call Insights: Sportradar Group AG (SRAD) Q3 2025

MANAGEMENT VIEW

* Carsten Koerl, CEO, announced "record quarter 3 revenues of EUR 292 million and strong flow-through with 29% growth in adjusted EBITDA and a record adjusted EBITDA margin of 29%." He highlighted the closure of the IMG Arena acquisition, the increase of the share repurchase program by EUR 100 million to a total of EUR 300 million, and raised full-year 2025 guidance. Koerl stated, "IMG Arena is a highly strategic acquisition, which aligns with our core business and will fuel our next leg of growth... This acquisition is expected to accelerate our growth while being accretive to our adjusted EBITDA margins and free cash flow from conversion." The company also renewed its deal with the Spanish Football Federation and reported that the first season of the extended partnership with Major League Baseball saw revenues exceeding projections.
* Koerl described ongoing innovation, such as upgrades to 4Sight Streaming with new features and the launch of a generative AI model for basketball analytics, as well as strong growth in managed trading services with a 25% year-over-year increase in turnover and a margin of over 11% for clients.
* Craig Felenstein, CFO, stated, "Sportradar's strong third quarter results once again demonstrate the value of the unique position we have built at the intersection of the sports, media and betting industries." He detailed "revenues of EUR 292 million, an increase of EUR 37 million or 14% as compared with the third quarter a year ago," and emphasized broad-based growth, a customer net retention rate of 114%, and adjusted EBITDA of EUR 85 million, up 29% year-on-year. Felenstein confirmed a strong liquidity position with EUR 360 million in cash and no debt outstanding.

OUTLOOK

* The company raised its 2025 guidance, now anticipating revenues of at least EUR 1.290 billion and adjusted EBITDA of at least EUR 290 million. Felenstein explained this represents "year-over-year growth of at least 17%" for revenue and "growth of at least 30% versus 2024" for adjusted EBITDA. He stated, "We currently anticipate 2026 revenue growth, including IMG, to accelerate to 23% to 25% range on a constant currency basis."
* Management highlighted that the majority of meaningful revenue and cost synergies from the IMG integration will be realized in 2026.

FINANCIAL RESULTS

* Sportradar reported "revenues of EUR 292 million, an increase of EUR 37 million or 14% as compared with the third quarter a year ago." Adjusted EBITDA reached EUR 85 million, with an adjusted EBITDA margin of 29%.
* Free cash flow for the first nine months reached EUR 149 million, with a conversion rate of 72%. Profit for the third quarter was EUR 22 million.
* The company closed the quarter with EUR 360 million in cash and cash equivalents and no debt outstanding. Sports rights expense increased 15% year-on-year to EUR 73 million, while adjusted personnel expenses were EUR 72 million, up 4% year-on-year.

Q&A

* Robin Farley, UBS: Asked about the allocation of the EBITDA raise between IMG Arena and the organic business. Felenstein responded, "the majority of that increase relates to the inclusion of IMG into the 2025 full year forecast," while "the majority of EBITDA increase is from the rest of your business."
* Jason Tilchen, Canaccord: Inquired about client reactions to IMG integration and timing for synergies. Koerl emphasized it is "very early days," but noted "both of the big leagues here in the U.S. have reached out." Felenstein added, "we would expect there to be some significant uptake from our existing clients" in 2026.
* Ryan Sigdahl, Craig-Hallum: Asked about growth in integrity services and the impact of customer-friendly soccer results. Koerl acknowledged "we see some impact when you have only favorites winning in soccer," but the effect was "very limited" in NPS.
* David Katz, Jefferies: Asked about iGaming opportunities. Koerl explained, "we are doing this in Brazil, and we see it holistic... we feel very strong about iGaming to integrate this in our portfolio."
* Shaun Kelley, BofA: Sought detail on prediction markets. Koerl described active engagement with stakeholders and the need for regulatory clarity, stating, "we are ready to go here once the framework is the right framework."
* Barry Jonas, Truist: Inquired about in-play betting and upcoming UEFA contract renewal. Koerl said in-play handle in the U.S. is "roughly 50%, but the trend is picking up," and confirmed active discussions with UEFA.
* Jordan Bender, Citizens JMP: Asked about exposure to gray markets and headcount strategy. Koerl outlined a "4-level process" for compliance; Felenstein stressed a focus on using existing talent more efficiently rather than adding headcount.

SENTIMENT ANALYSIS

* Analyst tone was generally constructive and probing, with a focus on the magnitude and timing of synergies from IMG Arena, the monetization of new opportunities, and regulatory issues. Questions were specific, often seeking clarification on integration, guidance, and business risks.
* Management maintained a confident tone during both prepared remarks and Q&A. Koerl frequently emphasized the company's strengths and growth prospects, using phrases like "we are confident in our growth strategy" and "we feel very strong about iGaming to integrate this in our portfolio." Felenstein provided detailed, direct responses and stressed operational discipline.
* Compared to the previous quarter, management's tone was more assertive regarding the integration of IMG Arena and acceleration of growth, while analysts maintained a consistent, detail-oriented approach.

QUARTER-OVER-QUARTER COMPARISON

* The current quarter featured the closure and immediate integration focus of the IMG Arena acquisition, whereas last quarter the deal was pending. Guidance for 2025 was raised this quarter to account for IMG Arena, with a new revenue target of at least EUR 1.290 billion versus EUR 1.278 billion previously, and adjusted EBITDA guidance increased to at least EUR 290 million from EUR 284 million.
* Management reiterated its focus on innovation, particularly in AI and next-generation products, expanding on prior discussions of 4Sight Streaming and MTS growth.
* Analyst focus this quarter shifted more acutely to integration timelines, synergy realization, and regulatory risk management, while last quarter saw more discussion of product mix and market expansion.
* Management's tone was more confident and growth-oriented, particularly in relation to capital allocation and the impact of the IMG Arena integration.

RISKS AND CONCERNS

* Management identified foreign currency headwinds, noting revenue growth would have been higher on a constant currency basis.
* Integrity of betting and regulatory compliance were highlighted as ongoing priorities. Koerl outlined a strict compliance process for market exposure and data security.
* Analysts raised concerns about the pace of realizing synergies from the IMG Arena acquisition and the timing of regulatory developments in prediction markets and iGaming.

FINAL TAKEAWAY

Sportradar delivered a record quarter and raised its full-year 2025 guidance, reflecting the inclusion of IMG Arena and continued strong operational momentum. The company is focused on integrating IMG Arena, realizing cost and revenue synergies, and driving innovation across its portfolio, while maintaining strict compliance and operational discipline. Management emphasized confidence in the long-term growth strategy and its ability to create significant shareholder value through sustained revenue growth, expanding margins, and robust free cash flow.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/srad/earnings/transcripts]

MORE ON SPORTRADAR

* Sportradar Group AG (SRAD) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4838887-sportradar-group-ag-srad-q3-2025-earnings-call-transcript]
* Why Sportradar Has Remained Range-Bound Since Q2 Earnings [https://seekingalpha.com/article/4826876-why-sportradar-has-remained-range-bound-since-q2-earnings]
* Sportradar: Stronger Than Ever, But So Is The Valuation (Rating Downgrade) [https://seekingalpha.com/article/4821889-sportradar-stronger-than-ever-but-so-is-the-valuation-rating-downgrade]
* Sportradar GAAP EPS of €0.07, revenue of €292.05M; raises FY outlook [https://seekingalpha.com/news/4515581-sportradar-gaap-eps-of-007-revenue-of-29205m-raises-fy-outlook]
* Sportradar Q3 2025 Earnings Preview [https://seekingalpha.com/news/4514712-sportradar-q3-2025-earnings-preview]