Sportradar Group (SRAD) investor relations material

Strategic outlook and growth drivers

• Focus on consistent, durable revenue growth by capitalizing on expanding markets and selling more content and products to customers, including new offerings in iGaming and prediction markets.

• Guidance for 2026 projects constant currency revenue growth of 23%-25% and 200-225 basis points of margin expansion, building on 2025 results.

• Cost base is predictable due to multi-year sports rights contracts, supporting further margin expansion and strong cash flow conversion.

• International revenue comprises 70% of total, mostly from fixed-fee contracts, while U.S. revenue is tied to partners' performance and is expected to grow with new market opportunities.

• Expansion into adjacent markets like iGaming and prediction markets is expected to drive multi-year mid-teens revenue growth.

Prediction markets and data monetization

• Prediction markets present a significant opportunity, with recent deals such as the MLB-Polymarket partnership and expectations for tens of millions in revenue by 2026.

• Monetization strategies include providing data, fan engagement, and acquisition tools to exchanges, brokers, and market makers, with tailored revenue models for each.

• Official data partnerships with major leagues (MLB, NHL, NBA) are key to monetizing league data in prediction markets.

• Each prediction market client has unique needs, requiring customized contracting and product offerings.

IMG ARENA acquisition and M&A strategy

• IMG ARENA acquisition closed in November, with rights acquired to monetize across 800 sportsbook partners, already showing positive uptake.

• The deal is accretive to revenue, EBITDA margin, and free cash flow, with benefits expected to expand in 2026 and 2027.

• Strong balance sheet with €365 million in cash and no debt enables investment in core business, selective M&A, and aggressive share buybacks.

• Buyback plan increased from $300 million to $1 billion, prioritizing shareholder returns while remaining open to strategic M&A.