Big names turn out for Sportradar event

Data aggregator and vendor Sportradar Group hosted a star-laden investor day on 1 April, with a number of stock analysts in attendance. Guest speakers included DraftKings CEO Jason Robins, NBA Commissioner Adam Silver, NHL Commissioner Gary Bettman and Kaizen Gaming CEO George Daskaliks.

Sportradar executives included CEO Carsten Koerl, Chief Financial Officer Craig Felenstein, Executive Vice President of Group Operations Dalraj Bahia, Chief Commercial Officer Eduard Blonk and Chief Product, Technology & AI Officer Behshad Behzadi.

Stock analysts largely ignored the likes of Bettman and Silver. They preferred to focus on Sportradar’s business plan and revenue projections.

According to J.P. Morgan analyst Samuel Nielsen, the Swiss-based company “highlighted its ability to leverage its scale and data and technology competencies to deliver on its strategy of innovating on its product and services to provide more value to its clients and league partners and generate higher take rates and pricing power.”

Deutsche Bank analyst Steven Pizzella took a more measured view: “As is often the case, management provided a healthy long term outlook, while highlighting the past transformation and achievements of the business and the game plan to achieve the future growth, through leveraging the current product lineup, innovation, and expanding client relationships.”

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“The essence is that [Sportradar] grows its offerings with existing customers as their businesses grow, in addition to adding to the base of customers,” added Jefferies Equity Research analyst David Katz. He observed that Sportradar customers who bought three of its products experienced double the revenue of single-product purchasers.

Katz pointed out that Sportradar had deployed artificial intelligence as a cost-cutting tool, having completely automated the gathering of data on more than half the games it covers, a 90 percent savings over using human labor. AI was also said to have improved the efficiency of Sportradar’s internal coding.

The April 1 presentation garnered a favorable review from Katz, who saw “sustained growth beyond our forecast horizon,” with “outsized” revenue and cash flow on the way. Deeming the company’s outlook conservative, Katz wrote that Sportradar “laid out a cogent argument for its competitive positioning and defensibility and a balanced range of revenues with considerable operating leverage.”

Pizzella termed the investor day “helpful and likely to attract more investor interest.” The event “reinforced our views and longer term outlook.” He observed that Sportradar was predicting its revenue and cash flow would grow 10.5% and 8.5%, respectively, faster than Wall Street’s consensus. As for Sportradar’s business model, he felt it “is still in its infancy in regards to investor education and interest.”

Nielsen noted that Sportradar execs projected revenue of €2 billion (US$2.18 billion)1 EUR = 1.0904 USD
2025-04-02Powered by CMG CurrenShift through 2026, 75% of what analysts had forecast. He added, “This is noteworthy given broader current investor sentiment around the health of the consumer.”

Sportradar furthermore forecast a 15% growth rate into 2027, for €1.7 billion (US$1.85 billion)1 EUR = 1.0904 USD
2025-04-02Powered by CMG CurrenShift of additional revenue. Cash flow was predicted by management to a see 2027 conversion into €275 million (US$300 million)1 EUR = 1.0904 USD
2025-04-02Powered by CMG CurrenShift, a 60 percent rate. Nielsen deemed these figures “attractive.”

While maintaining his projections for this year, Nielsen raised his cash flow target for 2026 by 3% and ratcheted his revenue forecast to €1.45 billion (US$1.58 billion)1 EUR = 1.0904 USD
2025-04-02Powered by CMG CurrenShift. For 2027, he predicted €1.65 billion (US$1.80 billion)1 EUR = 1.0904 USD
2025-04-02Powered by CMG CurrenShift revenue and €450 million (US$491 million)1 EUR = 1.0904 USD
2025-04-02Powered by CMG CurrenShift cash flow, both slightly beneath Sportradar’s predictions.

Katz’s prognostications were similar, as he lifted his 2026 revenue prediction from €1.45 billion (US$1.58 billion)1 EUR = 1.0904 USD
2025-04-02Powered by CMG CurrenShift to €1.47 billion (US$1.60 billion)1 EUR = 1.0904 USD
2025-04-02Powered by CMG CurrenShift. Cash flow was expected to €359 million (US$391 million)1 EUR = 1.0904 USD
2025-04-02Powered by CMG CurrenShift, not the previously projected €346 million (US$377 million)1 EUR = 1.0904 USD
2025-04-02Powered by CMG CurrenShift.

“We continue to be encouraged with management’s execution on leveraging its sports data rights to innovate on product and generate pricing power that is garnering a higher share of wallet (especially around live betting),” Nielsen reported. He raised his price target on SRAD shares to $27 apiece (matching Katz’s and Pizzella’s targets), up from $26 per share.

The analyst noted that sports betting was forecast to grow 10% worldwide, becoming a $150 billion business. Even faster growth was anticipated in Latin America and North America, both expected to expand 17%.

Above-average growth of 12% was predicted by Africa and Europe, while Asia and the Middle East were forecast to lag with 6% expansion. Proposition or in-play betting in the United States was foreseen to explode, having grown to 33% of bets in 2024, and accelerating to 44% of wagers in 2027, 47% in 2029 and 75% at US market maturity.

To put that in a Sportradar context, every percentage point of prop betting translates into €6 million (US$6.54 million)1 EUR = 1.0904 USD
2025-04-02Powered by CMG CurrenShift for the company. “To achieve this,” chronicled Nielsen, Sportradar “is developing technologies that stimulate trial and appeal, such as personalized betting opportunities and real-time engagement tools.”

Sportradar was said to be looking to the igaming field for potential expansion. It placed the addressable market at US$10 billion. It was leveraging its existing presence in such markets as Brazil to seize more share. Sportradar services 84 icasino brands, which represents 21% of Sportradar’s marketing revenue.

Sportradar brass also followed up on their 19 March purchase of IMG Arena’s sports rights, saying they expected the deal to close in the fourth quarter of this year. Endeavor Group Holdings is paying Sportradar US$125 million to unload the portfolio.

Endeavor will make upfront payments of US$100 million to sports leagues “to reset rights contract terms to more monetizable levels.” Nielsen opined that “we see the acquisition broadening its global data rights portfolio on margin accretive terms, while accelerating revenue growth, EBITDA and free cash flow.” Katz saw the deal, once consummated, as bringing €137 million (US$149 million)1 EUR = 1.0904 USD
2025-04-02Powered by CMG CurrenShift in revenue and €33 million (US$36.0 million)1 EUR = 1.0904 USD
2025-04-02Powered by CMG CurrenShift in cash flow.

Concluded Pizzella, “we continue to believe [Sportradar] gives investors, who are interested in gaining long-term exposure to the rapidly growing sports betting industry, a pure-play way to get leverage to the theme, through a profitable and majority subscription based … operating model.”