Sportradar Group (NASDAQ:SRAD) Announces Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Sportradar Group (NASDAQ:SRAD) released its quarterly earnings data on Tuesday. The company reported $0.10 earnings per share for the quarter, missing the consensus estimate of $0.11 by ($0.01), Zacks reports. The firm had revenue of $410.62 million during the quarter, compared to analysts’ expectations of $405.74 million. Sportradar Group had a net margin of 1.23% and a return on equity of 1.89%. The business’s revenue for the quarter was up 24.1% on a year-over-year basis. During the same period in the previous year, the business earned $0.07 earnings per share.

Here are the key takeaways from Sportradar Group’s conference call:

• Q3 revenue rose 24% to €363 million, while Adjusted EBITDA increased 21% to €102 million, with a 28.2% margin. Free cash flow reached €177 million in the first nine months, up 18% year over year.
• Prediction markets became a meaningful new growth channel, with Sportradar partnering with exchanges including Polymarket, Kalshi and Novig, as well as Robinhood and roughly 10 market makers. Management expects strong growth as trading volumes, broker relationships and ultra-low-latency data services expand.
• The IMG ARENA integration is performing ahead of the original 25% revenue-synergy target, supported by broader distribution to Sportradar’s 800-plus clients and new products such as live match trackers and player and micro markets.
• Full-year guidance was reiterated at 19%-21% constant-currency revenue growth and 24%-27% Adjusted EBITDA growth, but management flagged uncertainty around Brazil, where approximately €60 million of annual revenue could be at risk if the regulated market is curtailed. A potential MLB lockout is another uncertainty, although the company cited contractual protections and alternative Tier 1 sports content.
• Sportradar agreed to sell non-core Atrium Sports for €170 million, expected to close after regulatory approval, while retaining selected technology assets. The proceeds, along with the company’s €190 million cash balance and undrawn €250 million credit facility, will support investment, M&A and continued share repurchases.

Sportradar Group Price Performance

Sportradar Group stock traded up $2.00 during mid-day trading on Tuesday, hitting $14.87. 1,527,002 shares of the company were exchanged, compared to its average volume of 2,777,572. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.98 and a quick ratio of 0.98. Sportradar Group has a 12-month low of $11.39 and a 12-month high of $26.08. The business’s 50 day simple moving average is $12.49 and its two-hundred day simple moving average is $14.94. The company has a market capitalization of $4.45 billion, a P/E ratio of 247.97 and a beta of 1.59.

Analyst Ratings Changes

SRAD has been the subject of a number of research analyst reports. Canaccord Genuity Group dropped their price target on Sportradar Group from $24.00 to $22.00 and set a “buy” rating for the company in a research report on Friday, October 23rd. Citigroup reiterated a “market outperform” rating on shares of Sportradar Group in a research report on Tuesday, September 8th. Morgan Stanley lowered their price objective on shares of Sportradar Group from $15.00 to $13.50 and set an “equal weight” rating on the stock in a research note on Monday, October 19th. JPMorgan Chase & Co. dropped their target price on shares of Sportradar Group from $15.00 to $13.00 and set a “neutral” rating for the company in a report on Tuesday, October 20th. Finally, BTIG Research cut shares of Sportradar Group from a “buy” rating to a “neutral” rating in a research report on Tuesday, August 4th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat, Sportradar Group presently has a consensus rating of “Moderate Buy” and a consensus target price of $18.03.

Sportradar Group Company Profile

Sportradar Group AG is a sports technology and data company that provides business-to-business solutions to sports federations, leagues, media organizations, sportsbooks and other clients worldwide. The company collects, processes and distributes sports data, helping customers deliver live scores, statistics, schedules, news and other sports content across digital platforms.

Its products and services include real-time data feeds, betting odds and managed betting services, audiovisual content, marketing solutions, fan-engagement tools and sports integrity services.