Sportradar Group (SRAD) Morgan Stanley Global Consumer & Retail Conference summary

Strategic positioning and growth drivers

• Operates at the intersection of sports, media, and gaming, leveraging strong industry tailwinds and premium content to drive growth.

• Deep relationships with leagues and sportsbooks globally, with a focus on fan engagement and value creation.

• Founder-led vision and a culture of innovation reinforce long-term growth opportunities.

• Major contracts with leagues like NBA, NHL, and ATP are secured for 6+ years, providing cost stability.

• Expansion into new markets, notably Brazil, and ongoing product innovation are key growth levers.

Financial model and margin outlook

• Global sports gaming market expected to grow at low double digits, with domestic growth at 25%-30%.

• Revenue growth projected in the mid-20% range, outpacing the market due to added value and innovation.

• EBITDA margins currently around 20%, targeted to reach 25%-30% in the foreseeable future.

• Free cash flow conversion improved from 30% to over 50% year-over-year, supported by a strong cash position and no debt.

• Cost structure is stable, with major sports rights and personnel costs tightly managed for margin expansion.

Contract structure and competitive landscape

• U.S. contracts with operators like FanDuel and DraftKings are revenue share-based, while international contracts are mostly fixed.

• 70% of revenues are from fixed contracts, 30% variable; efforts underway to increase variable components internationally.

• Competition for major U.S. sports rights is limited due to long-term contracts; global rights remain competitive but are evaluated for margin impact.

• Leagues such as NBA and NHL hold equity stakes, aligning interests for mutual growth.