Sportradar (SRAD) Q4 FY25 earnings call: guidance and Q&A

How is IMG ARENA trending against medium-term targets, and what have been the key learnings and synergy realizations since the acquisition closed?

IMG integration is ahead of plan, with all Tier 1 operators converted to the content. The strategy is to leverage Sportradar's broader distribution network (600-800 operators vs. IMG's 50-60) and product suite (MTS, visualization) to drive revenue synergies. The company is slightly ahead of its 25% revenue synergy target for IMG in 2026.

“We are trending a little bit better than the plan. And our main focus here is the revenue synergies. So we measure the revenue synergies. How much can we achieve here by this bigger engine and the more products. And that's the second part of your question. We are a little bit ahead of the target. The target is 25%, and we gave the number of EUR 140 million already earlier, which includes that 25% revenue synergies.”

asked by Ryan Sigdahl · answered by Carsten Koerl

Given the ongoing discussions around prediction markets and the CFTC's authority, what are the next steps for Sportradar to secure direct data partnerships with leagues for prediction markets, especially with major customers entering the space?

Sportradar focuses on player protection and sports integrity. NHL, MLS, and UFC have established frameworks with exchanges, enabling Sportradar to supply official data. The company is ready to deploy official data once partners find a satisfying framework for player protection and integrity, and expects to announce deals soon.

“So if our partner finds a satisfying framework for a player protection and integrity where we happily contribute, we are ready to deploy the official data. And if we are looking now a little bit deeper here, there are 2 things. There is the exchange and there is a market maker.”

asked by Ryan Sigdahl · answered by Carsten Koerl

How does Sportradar envision participating in the broker, exchange, and market maker layers of prediction markets, given its expertise in real-time data and AI?

Sportradar sees the market maker segment as particularly interesting due to the need for real-time data, pricing models, and liquidity. Their AI-driven foundation models can predict player movements and potential outcomes, providing an edge for market makers. They aim for a revenue share model based on take rates for both exchanges and market makers, with negotiations ongoing for NHL, MLS, and UFC.

“So the market maker segment is specifically interesting because they need real-time data to price this and they need the models to lay the liquidity there. And even more and the real gold is can we predict the next movement better than anybody else, and we can because we are sitting on this huge knowledge.”

asked by Shaun Kelley · answered by Carsten Koerl

Why does the implied operating leverage for 2026 appear to pull back, and is there incremental investment going into IMG?

The lower flow-through is primarily due to fully incorporating IMG's revenue, which comes at a margin higher than the base but lower than incremental margins of the core business (over 40%). Additionally, Q4 2025 had significant savings (lower bonus accrual) and some IT development spend was pushed to Q1 2026, creating a timing issue that impacts the 2026 margin expansion.

“First and foremost, the biggest reason for the -- what I would say is lower flow-through is that we are now fully incorporating IMG as if it's new revenue, right? And that revenue comes at what I would say is a margin that's higher than our base margin, but lower than our incremental margins, right?”

asked by Jordan Bender · answered by Craig Felenstein

How does AI impact Sportradar's core data business, managed trading, streaming, and marketing, particularly regarding distribution, bundling, and potential cost reductions?

Sportradar is massively applying AI internally, with 100% of engineering code AI-supported, increasing lead time by 20%. In operations, 50% of content is produced by AI agents using computer vision, extracting more data points per match. Externally, AI enables the foundation model for basketball, predicting player movements and potential scoring locations 7 seconds in advance, which is exciting for market makers and coaching applications.

“The second focus area is operation. Why should a human being not be replaced by from us programmed AI agent if the data is there, if computer vision is there and video is there. There's no reason for it. So we are already on 50% of our content produced with our own agents, which are working on computer vision to extract that information, tens of thousands of more data points per match depending on the sport, which is in there.”

asked by William Lampen · answered by Carsten Koerl

Given recent lowered growth expectations for DraftKings and FanDuel, what is Sportradar's outlook on the U.S. market as a major growth driver, distinguishing between regulated OSB and prediction markets?

Sportradar's global revenues are 70% outside the U.S., a well-oiled machine. Of the remaining 30% in the U.S., 2/3 is betting. Prediction markets are expected to influence 15-30% of this, with little to no cannibalization of OSB. Sportradar anticipates an uplift opportunity in the tens of millions from prediction markets, but emphasizes maintaining focus on its significantly larger international operations.

“What we hear from our partners, and that's now the FanDuel, the DraftKings, the Fanatics of this world, they see little or no cannibalization between the 2 things, prediction market and online sports betting. So if you ask me now from a Sportradar perspective, we expect an uplift opportunity in the tens of millions, not in the hundreds of millions from prediction markets.”

asked by Bernard McTernan · answered by Carsten Koerl