Sportradar Forecasts Big Earnings, Revenue Growth

Posted on: April 1, 2025, 02:59h. 

Last updated on: April 1, 2025, 03:02h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.
  • Stock trades higher as company forecasts big bottom, top line growth
  • Sees expanded use of artificial intelligence (AI)

Shares of Sportradar (NASDAQ: SRAD) closed higher Tuesday after the sports betting data provided told shareholders it expects massive earnings and revenue growth through 2027.

Sportradar
Sportradar participating in a gaming conference. The stock rallied Tuesday after the company forecast significant earnings an revenue growth. (Image: Front Office Sports)

The Swiss company held its investor day at which it told market participants it expects 2027 revenue of $1.83 billion on adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $492.32 million, implying compound annual growth rates (CAGR) of 15% and 27%, respectively. Sportradar added that new products and innovation will help it improve long-term take rate.

The company is well-positioned to outpace industry growth and capture a growing share of in-play betting thanks to a market-leading product portfolio designed to deeply engage sports fans, combined with a commercial strategy focused on addressing clients’ evolving needs,” according to a statement.

In-game, or live betting, is one of the fastest-growing segments in domestic sports wagering landscape and one that’s heavily dependent on technology. Evolving demands on that front could bode well for Sportradar over the long-term.

Sportradar Sees AI Driving Growth

Sportradar expects artificial intelligence (AI) as a growth driver as it looks to bolster its suite of technology products and services available to sportsbook clients.

“A robust tech stack and deep AI capabilities enable the Company to improve efficiencies, accelerate innovation and provide an opportunity to lower growth barriers for partners and clients in the sports ecosystem,” said the company in the press release.

That commentary comes on the heels of an announcement last November in which Sportradar said it’s rolling out an AI-based audio advertising platform for casino and sportsbook clients. Gaming companies, including sportsbook operators, can leverage the new Sportradar offering to create customized advertisements during live games that could be relevant to bettors and potentially stoke increased handle.

Broader use of AI and ensuing adoption by clients could assist Sportradar on the road to expanding its EBITDA margin by 700 basis points by 2027 while lifting free cash flow to approximately $300 million and increasing its free cash flow conversion rate to 60% by that year.

iGaming Could Be Growth Outlet, Too

Due to its relationships with some of the world’s largest sports leagues and a recent sports wagering acquisition, Sportradar is often viewed as a technology play on the sports betting industry.

That view is accurate and the company estimates the global sports wagering market will grow a double-digit CAGR over the next four years, but there’s also significant opportunity for Sportradar in iGaming, particularly in the US where penetration of that form of wagering remains small.

“The Company will continue to look at opportunities in adjacent markets, including leveraging its existing 360-degree marketing services capabilities in the adjacent online casino market, opening up a potential $2 billion serviceable addressable market (SAM),” added the firm in the statement.