SRAD - Earnings call transcript Q4 2023

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Operator

Good day, and welcome to Sportradar's Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded. I would now like to turn the call over to Jim Bombassi, Head of Investor Relations and Corporate Finance.

You may begin.

Jim Bombassei

Thank you, operator. you fourth us quarter thank call Sportradar's and the for of everyone, for for joining earnings Hello, XXXX. our via Please will note our webcast website accessed this conclusion posted reference we investors.sportradar.com on the call. during this at will that presentation can on the be website at slides of and the be of website. today's will be also call replay A available our on investors. will prepared up the from remarks, questions we open our After to call In of follow-up. question please plus yourself limit one the to interest time, one you regarding information will the hear future of during statements, today some that note outlook. discussion will consist including, our Please business without revenue forward-looking of limitation, those and risks involve our statements or trends may differ and These cause forecast. actual results uncertainties that from materially to

on Form and filed both information, respective SEC, with statements non-IFRS with dates. Also to X-K please along as present XX-F the today's to which and today we forward-looking any their more obligation associated or assume measures. factors no refer information financial will We IFRS report speak call, earnings discussed update release. the risk Form For annual the in during our of

non-IFRS of these to Investor earnings and measures, release, Relations' filings slides a SEC, IFRS to reconciliation regarding posted non-IFRS in measures supplemental disclosures Additional our the with the which of is are each included including website. our

today turn discussion over the are Executive Officer; Officer. me let and our me Carsten Joining Chief Financial to Koerl, now Gerard Griffin, And Chief Carsten.

Carsten Koerl

Good Jim. Thanks, morning, everyone.

to you an our performance with are of today outlook XXXX provide strategic excited speak to XXXX. We and in overview in our

and relationships. we business offering, our profitability the strategically, of our the growth depth of revenues, above-market client by we the to scale flow. refine content deliver reflects at continue sports and breadth and growth scale. technology, in leader and our proposition supported This XXXX, strong partnership cash our high delivering value global in In to continue a As product of consistently

at we guidance this EBITDA adjusted end XX%. technology continuing third to capabilities. revenues year drove also revenue revenues and XX% our growth. focused high with a invest and least content adjusted the our This XXXX, up maintain stronger growth We XXXX consecutive marks at We to momentum the more delivered we and in of plan increasing and operating in In agile leverage delivered with while EBITDA range, XX% organization.

our points We activities also margins operating cash grew by from operational improved X.X XX%, leverage the highlighting EBITDA model. adjusted our by percentage flow in and net

XXXX, Now I will in touch performance. several upon illustrating exceptional highlights operating our

next and the be thrilled rights for are as the we the streaming to bidder X First, data, for ATP successful years. betting selected global

bring plan excited are about around revolutionize of this I have market We innovative great ATP world. that Sportradar and ambitions will shortly. discuss will truly the services, tennis, and to bringing which to betting the Both products on sports tennis some fans and

addition partnership, In with our more while experience, Confederation we BetMGM Sportsbook Bundesliga, clients With including strengthened to including Caesars expanded German NBA to our Sportradar. long-term betting the transform NBA partnerships, more of fuel the sports product and deals, we partnerships the with betting, our official other drive portfolio our foster commercial NASCAR, American data. several our CONMEBOL, soccer Football and in-play for value and content Collectively, ATP, to these federation. roadmaps ambitious premier South

were nearly sixth on Taiwan the lottery, power data. now all which we for U.S. XXX% We official operators of these, NBA in sports also lottery America, signing major represents globally. to With selected have North agreements the with the largest market, sports

as we are the the and with past partner to outlets than around more the win, Sportrader's globe our X,XXX intend as nearly position we We year and and channels. speak to have and across in sportsbook tremendous lotteries to additional fully the in retail solution mobile future. web great well results the work choice This is this near as of integrated sign the progress industry. another partnerships XX cement now achievements These making

of strength the approved share in our also Board confidence the the USD to buyback, to XXX underscoring a long-term a the our CFO on and proposition. fundamentals our Directors Given our million for in search. I of business have moment the positive future, update confidence you take outlook value want

have We candidates been some have search consideration. progress conducting our strong and under

key have a take confident to excited strong role. foundation the the are We the is momentum approximately we that advantages X data technology, will established us foundation engine. are about with federations. to annually approximately sports leagues and strong this million partners in and a await depth I'm as to and serve breadth which XXXX. of our XX competitive this growth XXX we across individual on events against our and content, and real-time cover opportunities sports the we Core sports We select approximately and

bring future portfolio our in XXXX, the most unparalleled strengthened These innovative our to and we We The offering. helping and product and leverage into development, the of and and notably and partnership are our product the drive of global insights sports. In business. reach provider leading content ATP. value real-time solution through incredible growth continued partnerships scaling fuels data NBA our to these with further assets, overall content enhancing

boost have an to have appeal. partners us allow scale on it We makes not our the order ability the growth reach ROI invest our we believe in tennis right with have sport while way value bet-on X.X deliver underscoring followed clients, highest rights making to rights more deliver we and is is on and basketball in and I most billion rights targets. the and second Similarly, huge rights to that we for best of As global and strategic mentioned the shareholders. additional -- mix a need bet-on then our to continue focusing content, if acquire billion do X.X the sense, previous deliver fan ROI a eyeballs, of deliberate, most the to enormous its calls, on approach sports both sport fans global worldwide ranked as portfolio third of our base a the

product expanding to to to From products, define live to our turning deliver betting Now streaming next-level with markets betting backed betting our exciting is clients. and the sports tools, continue further leveraging to engagement experience. we our odds tech innovations, It roadmap. proprietary creating value enhance

As a I deep lies the and productization how to core strategy to our the the of it and at mentioned, and create us experience. data products value-add new betting market launch that more immersive enables

the ATP great with of this. Our are partnerships NBA and examples

and games We driving deeper experience from simulating fan innovation, creating in-play are insights and the enriching betting. matches,

about of these some products. talk Let's and innovations new

introduce visualizations earlier and streaming stream we animated core new into Xsight I'm graphics, to betting to month leads to of First, as our moments video technology, with went gear launched Indian bet sportsbooks. with up we this directly our [ Wells. this markets offering in we overlays such by opportunity for match. in discuss betting live matters an fans Xsight month. statistics viewing enhanced new the the seamlessly the Sportradar in-play games audiovisual initially and key sport will Where enhances which on broadcast the as excited ATP ] later This experience about live micro and to excite provide integrating

spread been integrates OTT out including We and ultimate the League uptake range that to in bet Embet launched broadcast platform. creates during a wide product integrated real live this our NBA's into under a product reduces Embet significant industry betting at player are to over Embet to friction first OTT of very It experience already to the also real-time Embet point on growing OTT content platform, of and and props. when Pass. beginning with time Pass fold data, an year inside roll bets. stream and other pleased live has place League see offering game it the of want watch great viewers users XX unique is since

functionality As coming usage we climb. months, to to we betting over anticipate add continue additional the

on We offering, game-changing are individual on market-leading generating odd about Odds their by liquidity. for very solution builds odds our Alpha tailored based core our sportsbooks also excited real-time which

We robust already it products launched how few higher itself sportsbooks either feel the unlock. that excited an will XX% has their the opportunities approximately product our great roadmap These marketplace, of betting generating examples XXXX. for tickets. or will I in in a and have margin on about are are launch very proven this

clear see Moving to to goals. We our delivering growth. path robust a XXXX financial

growth. growth and continued another XX% least and at We strong of for game coming revenue over generation. operational our cash EBITDA of plan us leverage year Execution adjusted meaningful the free expect should well position flow XXXX as as in years

scale. trusted will underlying will by product growth recurring by market growth solutions acquired conclusion, Furthermore, meaningful be will Our in value the In sports unlock addition NBA increases at our delivering best-in-class from further portfolio. benefit ATP rights. and we contractual to see and newly we and driver in industry indispensable step-up XXXX business, content partner of our are a leveraging which our underpinned

Our our unwavering quality is client strategic execute efficiency, is excellence across focus board. growth on our we this laser-focused plan. XXXX value priorities on exceptional against and as leadership shareholder and driving and Underpinning the

Now highlights. I review to turn will to you. over the Thank Gerard financial

Gerard Griffin

strong We with the financial in revenue out growth EBITDA results end and delivered our range. you, closing Carsten. guidance of year high Thank XXXX, at the our

in positioned Our growth strong, and we beyond. for are business continued XXXX well and success fundamentals are and

million million EUR and XX% EUR year-over-year. Revenues the flow well million million fiscal Adjusted up from percentage year-over-year. million, EBITDA as Our or XXX Adjusted for were million, or margins Net of XX XXX million, up points our year-over-year. were our EBITDA an up reinforce operations was profitability. X.X year XXXX were year-over-year. was Profit XXX million, operating scalability EUR XX% year-over-year. results EUR EUR activities cash XX or focus XXX% durability XX from or of XXX on improvement EUR XX XX%, EUR the financial profile continuing as growth XX% EUR up

our We was our base, of execution by fast-developing U.S. enabled in mix. as stronger client as This due growth scale in such and our revenue sports driven Taiwan markets strong business. wins revenue market significant like the by our Lottery. global strong points primarily expenses progress client Our leverage rights percentage growth from the improving X.X and recurring in operating focused of and from expansion the ahead new profitability, growth made by including well driving was rates, leverage as well a personnel

are has by program, to facility a maintain of no we confidence Today, comprised our flow our EUR credit Board fundamentals of of XXX million for continue a share million our long-term outstanding. business the with and approved XXX amounts balance and announce cash pleased EUR in strong the Directors cash XXX million company. equivalents liquidity a sheet, with and the of million USD XXX and cash We revolving buyback profitability year to justified strong EUR outlook that closing

quarter. delivered XX% or Now million We XX EUR turning up XXX revenues year-over-year. million, to fourth the of EUR

continuing Rest XX% was growth. quarter. of initial compared million initial and revenues year-over-year with quarter. deal existing contributions year. are NBA betting All from operations EUR selling We stronger the United MPS foreign and NBA by product lines. a Rest all was U.S. year-over-year, year-over-year. was EUR was XX% World lines, of driven all and with rights up happy year-over-year were or performances by other to services existing The XX clients. very driven of grew a or currency services In for XX% EUR loss an EUR latter in strong million was year-over-year. the uplift the year-over-year, the particular, the This new flat In terms, performance uplift our new up million quarter each XX improvement driven World EUR States XX% by EUR and from to additional in of and XX the XX% up business or live Taiwan to the positive a XX% strong of million year-over-year. primarily Lottery product Profit in up XX% prior XX year addition business million revenue and was rebound contribution an major X from supported MBS was at generating performance, for broadly million market up dollar in from of odds and in market part main our our with of CONMEBOL AV our XX current the a the revenues and across including year-over-year, U.S. by set new data impact the clients. least the

year-over-year, rights rights, margins EUR X from EBITDA up X.X percentage Adjusted Looking by or adjusted sports current XX% operating year-over-year. a delivered points by personnel partially of performance to In XX delivered have EUR Personnel our EBITDA million in in EBITDA. primarily million, summary, down guidance million XX of and financial the a strong strong Adjusted particular, ranges. EUR cap Sports was expenses. the XX our XX% up end EUR the were high or X driven year-over-year. at million, offset quarter. up new we EUR or XX.X%, year XX QX were we deleverage expenses partnership in million XXXX, EUR kickoff were higher XX% NBA rights, growth where our million, in off at leverage the

With business to XXXX success we XXXX. fundamentals, for turn our these positioned in strong continued well let's outlook. that, and growth are With

of For and fiscal to of to XXX our XXXX, adjusted will which at business billion, in EUR least of of a we EBITDA scale XX% X.XX EBITDA revenues to revenue expect EBITDA, bid globally, growth million continue case delivering equate adjusted and XX%. EUR margins

exchange of driven from dollar our include, client year leveraging content by assessing In euro portfolio addition this outlook of the fact, for partnerships. growth consider to amplified be will outlook our and revenue product a streams, assumes our U.S. Revenue strong recurring ATP our X.XX. primarily XXXX our and to just rate NBA best-in-class when

As will continue are our past, the business opportunities profitable noted and focusing we of we've leverage. to most growth our operating on in talent all resources the ensure unlocking and we challenge to aspects

year, our sales other resulting strategic year and cost primarily in operating offset This the run as the the from percentage in low to rights date the be have in from from rights of of second of full well onetime primarily partnership progressing of function EBITDA in the step-up X benefits ATP sports will cost [ realization sports from of expect Accordingly, to similar as half on focus operating mid-teens the of year personnel, rate collectively deals. and and continued on leverage will leverage in approximately first the our XXs operating the ] our for seasonality we the of costs first to adjusted full unlock phasing margins taken XXXX, actions the the half sustainable year section. a into This profitability points the expect We year. of expenses. we the is impact the XXXX our costs NBA full

look to very we as rights operating stable on and actively business, leverage generation. scale [ And space run We cash manage portfolio as much out margins flow expect benefit our from major XXXX, line operating items we free are focused our rate cost from unlock beyond sports to expense ]. cost enhancing more all we continue and a

targets As XXXX, the track our XX% least outlook the XX% to EBITDA at growth we IPO, XXXX reflect and performance in revenue on of on our our deliver time long-term and XX% to for on at outlined margins financial we adjusted in are of the range. we namely, well

organization. changes enhance for Before our questions, business better we I want our note simplify in reporting financial and call we to to with expect XXXX, aligned the the that made open to we've

to for questions. open Operator, will would With will We open communicated line QX more of in questions? call have the the call. like you this we earnings our on that, advance for

Operator

first Michael Graham Canaccord. from question comes [Operator Instructions] with Our

Michael Graham

to wanted you to ask your deal. to into press One, about I I Should on and year? initial what incremental for could customer the conversations a release, that X maybe talked innovative the wanted roadmap they excited a just about new comment nice ask contributions be we about anything from and bit relatively to relative then you -- some if make just expect can broadly, the wanted were really about in year XXXX? was just this of more product I see some there and you NBA And dig to the a share things.

Gerard Griffin

This is Gerard.

a that earnings in locked lifetime. to worth us it start. strong given have major our premium It's prior we the the In off of well, terms a the We've that's deal. is a NBA, global a ] -- this the is and partnership all as to we got X the billion States, in very EUR in engagement as over over said operators strong here internationally [ we've call, of revenue in really

implied in performing it's of ahead original as it's guidance. our our So and obviously we expectations, said,

Carsten Koerl

saw, into more all year data. can are product collect Alpha on you that as And we expect We Xsightes has [ [ we now ] convert of life and how those right, Well, roadmap, launched the Embet, and quicker we more can launched can ]. you yes, we products. how

it We here, and sharply have a into full topics, engine ramp-up are laser and those to data focusing products. X put we conversion on more collecting live innovative

Operator

Craig-Hallum with comes Group. question next Sigdahl Ryan from Our Capital

Ryan Sigdahl

I to start sports want with rights.

as So X looking Baseball you rights XXXX also any and that. ATP, get and and kind have, sports on the give and leverage out of years Major existing but you But the specifics at based helpful. XX, coming, others then with League of you the considering on have season X, more contracts Slide several can very in year renewal you your next so? into a NBA Appreciate

Carsten Koerl

Ryan, Carsten here.

like said, on that. the for investment So focusing rights, we return of into looking sport are we

position. sitting We strong on are cash a

scale and If carefully We acquire return the we what course, rights. proposition, are are we the from of for perfectly is which of ready fits have new our right, that distribution power, but placed we every our investment. to into evaluate long-term

present our we For the fulfill the have. and rights moment, we numbers which deliver numbers, which can with which the we

monitoring and the we about we market pretty sitting, we are confident strong So feel actively. where but are

Gerard Griffin

the over in is very year, premium as the we're we about operating rights including prepared And to items, it's Ryan, lifetime. X our amortization know, you just across rights comment. Carsten's remarks, When of in and 'XX all ability But a to and we because on rights. build And important deliver you as the sports NBA. this 'XX, up stated think have those fixed adding meaningful ATP leverage step

the go know these that's is. of rights sports deals, So number outer definitive. what a over into years, that we We life as

as contribution also we in latter We it know deals see an the half the the evolution would the beneficial more the to early which from means deals these that these years. company of evolve, as these is deals be revenue, at of

as look So more will us out in in leverage to we enable 'XX. itself operating have that confidence beyond

Ryan Sigdahl

Good. Then on just say follow-up Brazil. for I my have you about think question. Curious to

like you regulating But any currently how there? change I I market business that deals and those some BetXXX customers opportunities potential your with think does guess, large do guys there.

Carsten Koerl

exciting for It there. moment the big we So there I'm in priority X it's at how for market, the me, was Brazil and a flying see very it time, in us weeks' to It conference a is is a still is market. gray the zone.

we adaptations. see year. a law, given. which Still, there There So was of introduced piece licenses are still December in no was last

this expect We of happen X, that quarter will beginning quarter X.

So perspective, EUR market up market billion mentioned a which size is gray GGR. ramping X online maybe the is big the you the here. a players, From with

put We expect, X is billion the is with into a that regulation, that on EUR GGR comparison, EUR per To XX billion. market year. U.S. around about growing

opportunity. you scalable So that very it's is shows driven an a soccer. it's on opportunity and which And sizable

is CONMEBOL here supportive. very deal Our

portfolio attack but are a us. focus area it's looking Brazil this We strengthening years, for for into to

Operator

next comes Bernie from question Our & McTernan with Needham Company.

Bernard McTernan

expected plus too? much top growth, sense that that's as visibility to $XXX terms volume, guess, revenue talk contributing as start, you to sustainable the follow-up, could rate much a and future business, context the trying a the get just authorization how the in XX%-plus of buyback revenue how I of XX% then that to into about given into the how the well, is To is future driven if million love terms And of in revenue of deals, get year, by line? would the the years, a rights growth of just new this sense versus

Carsten Koerl

Yes.

of clients growth In contractual we and our on of looking new terms core that year-on-year at the from usual. client increases growth adding focus as our element XX% is call centricity it's other words, growth, business. the coming business largest what In market and into

about NBA you your roughly The sort perspective, and of see from rights is a we that that. revenue sort in point, So a balance, to XX%. at deleverage Obviously, the from talked the of 'XX. you could from That's perspective. step-up estimate that ATP factor sports broadly

shape basic the of that's So 'XX.

out question and continual our the look we As obviously I ATP last going evolution you 'XX, into revenues, a as said from see in deal. 'XX of are and NBA to the

over addition XX% business. , consistently In core organically in we to terms our have grown of

do making price our products, grow if as long new guidance out giving expect think continue our We're new you have top continue not performance, we're so call, and into grow. that the And we confidence leverage to technology about to but got the on we've to the and this we historical we range look to years, at getting investments that fundamentals for. leverage and from company line, obviously, importantly, think value, there's about we our stock future a look 'XX at than the buyback, more when value we the as beyond. more credit at of look in unlock significant we're and we operating 'XX, the in -- we obviously this currently The believe and

lower it appropriate obviously that it's market So strategy capital a put thought the at back move can our And a a forward. allocation have levels. place we buyback just to stock nice as address -- within lever we so was enter it's we and in purchasing to the

you our feel will we capabilities in and broadly obviously, think areas we invest where we can further. business, our in so the future believe scale continue the we If allocation, to capital about of opportunity more

one buyback So just allocation of strategy. capital is aspect the our

Operator

Robin question next Our UBS. Farley from with comes

Robin Farley

EBITDA wonder you in overall into give color on some of fits U.S. how us target? I terms if XXXX the for EBITDA could guidance your

Gerard Griffin

U.S. the growing, are seeing to U.S. and is XXXX, operating No, evolve. in top and leverage it's line, obviously, continuing Yes. in the profitable It's we

of the the be on run and will a So deal. managing in expected to contributor of in, rest with the portfolio, the plus because NBA the from Obviously, business be in perspective, it's our revenues plus the the profitable compressed came to it our U.S. profitable. XXXX. NBA from growth of rates, with But profitability in benefits QX that focus

Carsten Koerl

add. Maybe, I can

can I add. maybe Robin, -- will We

the outperform in all U.S. have. We growth the to we expect to according which the statistics market

a leverage here. have we think we So

market we profitable to to expect the more will the yes, U.S. U.S. been this We year. in the in be stronger than have profitable repeat, than And we grow

Robin Farley

a Okay. And follow-up. just maybe as

at Just rights of you now, but you on. are about fairly talking good Is some not quarters? operating you given thought these there's the thoughts growth if with pretty how do call of have guys point and that might that fixed good of in pretty this give costs sort as I'm were new maybe just on on next some there'll markets on, you the the on and growth X-year today, be there the few visibility leverage point, in and expenses might a might at you revenue U.S. visibility -- in Or your targets that's also sports something think the some curious that coming any if you that? some you

Gerard Griffin

No. and terms more into a to is come giving company, outlook thoughts on but long-range there look on will of There be in that more deeper future the in calls. that

Operator

next from comes David Katz Our Jefferies. with question

David Katz

cost and vein with just talk prior profitability bit move But works. the the is to is you to impact that And there envision this it. little of question. weight the to out just so think similar longer we the can a as why sort about appreciate can respect its of the into trajectory I what NBA I margins, a we start term, on

Gerard Griffin

projections those fixed. We rights done. Yes. cost -- is sports The all actual are

to of evolution projected life revenues, are much the The variable amortizing it's because it's which obviously on over So we the the is the grow of part over exactly and the know deal. every balance how quarter the lifetime. amortized sheet we're

about nature growing that, the end the lifetime. deal, are So it's Lifetime in the XXs that -- our you're realm the north the XXs. long-term the as in similar flow-through teens the XX%. in And point of deal on of starting starting margins into the the ATP you're XX% by of you you're for -- contract, EBITDA of at and because from terms goals of that lifetime think an view, just looking to of of of you're the

fixed sports a OpEx for and with math. as rights think curve a incremental line it's meaningful the a again, about -- for no you curve And real the So considerations. growth revenue

return on higher you deals a early the at in years. looking in latter than are the years You're these

Carsten Koerl

conversion. every without million the we benefit managed that costs. we revenues When Maybe it. more can convert, element betting, percentage from flow a EUR convert live That's on can a to That's through it's point, pre-match live on into X.X add which for we means one our us.

are property. sitting on We this

David Katz

Perfect. about question, I also follow a think when But X little you new about on through just can can to some underlying up just I just seconds growth talk bit is growth suppose appetite And the and product bigger roadmap much of the within control revenue if markets? picture the profitability next targets. the your we which a for introductions long-term years, path versus how in the

Gerard Griffin

our It's growth. single-digit do and return expenses and sports you where only portfolio, our people start sports I'll will want profitability to cost, -- of we contribute we if the into -- yes, grown that see control. When that terms completely range. will look think our we the an I our to they've at kind rights in in of I of outside our look add point within view, decision of rights from incremental are if at it operating spend

So -- tightly. and very our people you control. we deploying Similarly, when that our what and also and that's we're investing our to we're line decision on expect our them. where profitability rates to manage we've It's talent costs, run look where within continue focus and done year -- at for last

got but on capital how a much we're is variability in so forward. the focus and there of the day, visceral we've deploying future, the in run rates, And very end investments going

to to the of our us portfolio, year both portfolio got enables and clients On betting deliver depth the And scale in, we've sports and out, our product base. XXX-plus client side, our over revenue globally. year significant content value

And of in at point have that's above with from that's us incrementally look our we've future So based But to we and view, space, new can investment you and -- if we've capabilities we're that the addressing company in any when I company good the the the feel than we given that, market pricing year. how rate then scale on our at we that, capabilities within giving and the not And market. innovation grow. that the we deliver other, the have -- ability to again, we defined. the rates. to is a I company, growth delivered line about more on on history Again, growth index and of look in think, the within guidance continue company, we the products have this this

Operator

Our next question comes Citizens JMP. from Jordan Bender with

Jordan Bender

the number there follow repo, Gerard, Dollar months? trading in Mel you [ a window cadence, here once to of shares couple up or think earlier. made ] way a on comments of about that it's share opens just I to want whether Is

Gerard Griffin

Yes. under is the with Jordan, working be the based we we level spend volume. of -- only an of the the bank of managing terms stock the will obviously, volume trading be We a XXbX-X price in the obviously you of percentage with landing. and stock execution. plans, trading on the we'll where will will And investment these as know, doing be plan,

trading Outside will the governor looking do low at of plans, would kind so you stock kind stock It and these generally of liquidity will it on the influencing the as be you're in But the you're on way. volumes. is abnormal where an not purchasing you opportunistic. just that, in depend XX% a We market. -- XX% to of sort have of a with you the know,

So there by -- standard There's is it's plan there. Their in parameters. unusual nothing is -- parameters. its governed the

how it over evolves we'll So coming see quarters. the

Jordan Bender

in net year. to the that? ratio, back out on kind anything the just call seems half Is on then to retention fallen have the And that there of Understood. off of

Gerard Griffin

NBA a when -- be rights the some any focus old and and my the ATP about still client's than to is think is What It's the ratio it's in were I'd to 'XX sales with additional above in same-store put really strong parallel interest, stronger strong. I you I it portfolio say on would 'XX. they our in think scale. say of very should adds XXX No,

So that the forward. help going ratio will obviously

Operator

Karnovsky from comes question with next Our David JPMorgan.

David Karnovsky

with to your started NHL nascent but MLB it's through seeing of Carsten, AV of or maybe with see an U.S., products they're NBA negotiate market and to with developed do coming rights dedicated what that in the streams from see you come Curious, given with more some in for competitor. streaming, overall could first, that NFL And just then like engagement leagues these more fairly process of opportunity soon, you're the terms live have betting going out streams. you the a specifically, we power? internationally, media

Carsten Koerl

because this looks Yes. future. where I That's going good question to a the hyper-personalization. And is into is it think

know to experience. fan, is to So and where which you to give to you're this which a the need to need going customized going going. touching him then team, on know need first. That's is player, sports you're Xsight this

match, show data can't about some deep the information We already using are to which see. you

betting, It you're but anticipate user board customize the to to go So to you you really is can and users. [ the merchandising, the into step ] whatever with this limited. what The the sponsoring. sports performance, is user giving the It speed then ticketing, to visualize you it's experience not for it's it's and do this is stimulate monetization. want next for

NBA to speaking that's the looking our they on partners for. side, exactly Now what are

information giving be is prides the all and all points is So to globally fan. NBA this the data to of innovative for the themselves the X and competition and the digital Tier embed product enriched most sports sports The spot. the to future a this here very hyper-personalization, trying

decision be that to And us, one that's is a is technology holders, given points for the important sports the technology NBA for but there a see in premium as rights Tier X you market that's for the us of the very this use and So NBA. the going. was to aspect we where side while for innovative, think market, Yes, embedding our for choose good global partner media aspect premium of big I where Sportradar betting, distribute a is partner as size trending further. partner, product to itself is their this to the

Operator

Stanley. Morgan question next with Our Stephen from comes Grambling

Stephen Grambling

those? more couple is are way far? guess come from reorg. it are is much centralized? the results generally on savings follow-ups the Where of terms now And so currently have in guess, being operated that disclosed? they I we segment business labor the One, the where the Or right So a I exceeding of

Gerard Griffin

the half Yes, we're majority year that -- of complete. latter of at actions announced the are we the last

half the second the we focus remarks, and growing margins, 'XX, into actions half we in the just rights You'll our see mid-teens but -- year. of benefits prepared EBITDA the and about of the through about in more of of the the 'XX. flow year the our benefit as in took our in And the obviously, It's the your from of in sort than about 'XX, of continued half year second a sports those year. the for first thinking think in you're indicated half profitability as you're the models, thinking the the first function also in XXs getting on then of

So how point it. from you view, of that's think about should that

Carsten Koerl

CEO on with I note and sharply We the on the ROI if there. extremely razer driven growth and teams feeling Maybe the is innovation the here. are the more reorganization. can focus personal empowered product The add which on on the

and focused execute clarity more significant this. have significantly We more to on

that to It our this teams down, some and very strong inside very needs results from feel comes we positive now already. this, all about and time we So scale restructure but see organization.

Stephen Grambling

another that. as on follow-up maybe And

any key CFO we hear the in is for first earnings reorg. to since to call incoming this announced kind not what in I love part? change Gerard things think you departure. of of often want midst think your the It's you focus areas a have are and this I'd

Carsten Koerl

me this Let one. take

job. I did think Gerard a fantastic

only Gerard the department. in financial not installed Chief Officer. it's So Gerard Accounting

last several other which in and the We leaders have and the for been with have preparation the installed here Jim year. IR us sitting

yes, perspective. we a Gerard perspective, is depart, very from personal So feel And very, an exercise. took people team it's but a from decision a that sad organization this to strong

a have who Gerard of forward. on push company said, replacement confident are We Gerard a very level with help And the strong to find and place. we to team as in further the us for can I very

Gerard Griffin

group have that. the haven't the in leadership very left that other on I one we ahead And us questions. our just as top I is earlier, I we Carsten yet. there's about grow operating leadership those of very team, the building in the line of and us. X much the the on said, team, focused build much, would said Yes, as leverage, But is of opportunities as I things some the think as of priorities

While that making a the way need we rates that may coming and itself. have change. dialed to And sound the That's on as said, are that we're Carsten us continue the that's not of in like investing focus is by managing the it's right sure we a the going opportunity on to run visceral it's we're not right to and strong management finance very areas, importantly, comes a value. a CFO the leverage into a unlocking the -- financing, our into what whoever they leadership let in team focus more organization. level on right ROIs, and But take they're do rest care of seat, in operating

organization. we I very this company to team is that a strong decision have point, grow dialed view, aside, this just of to on Carsten's My well from in continue think point So profitably. to in build personal

Operator

with Bank Shaun America. Our Kelley comes last of from question

Shaun Kelley

Great.

markets to question guess, saw. Netherlands. see bit and the growth there a sort to outgrowing to So thinking at David's wanted the some U.K. the I more about it back are the mature and back core? obviously, of MTS ask sense more we some goes Carsten, headwinds regulatory Are any XXXX. is, maturity I sort think, I'm trying a and of just you MBS reason sort that I and level. meaningfully new particularly the high I of And geographic markets, the to, European that in -- of get And I'm just just go little a

where there for Brazil? growth? entirely to in seeing online if globally like anything that half? that about meaningful And specifically, is comes that you're market in is outsized trying think second the just Or So upside

Carsten Koerl

see Shaun, told. Brazil, so we as just I

EUR opportunity to comparing here it That's is the billion per next and probably size fully XX X case goes the with X sportsbooks here in with course, in really the a are the a decently opportunity. for So that is EUR place that empowered that year that invest a in the the of shows GGR years. optimistic EUR the billion U.S. billion scale, market a XX way that regulation

probably issues, into in we of So which see we on Latin America, South in to think see very optimistic that's look interesting. states this. besides we all small bullish a are we grow continues where to Nigeria a local are of other are There Africa In where opportunities, Italy Africa and interesting couple It's and The growth Europe, Croatia, the other a here. the is is more are there in difficult. opposite. for see see where countries are the or this. prominent right. overall example, strong we There it in we you U.K. most bit But

So that's say I would Europe. balanced a for view

we closely. Asia, into continued Looking monitor India have very to

year, maybe to X so Philippines or are opportunity, Japan, there is this years the We looking in here. in not in believe China. X much not we but in And an

opportunity, growth I'm That's around overall, picture. overall from if significantly than globe we the So a threat. the looking see opportunities more

is betting than the we for the system, problem the higher managed to years. of them return a risk It It's enormous for services that it solving future. strong pipeline here percentages, is give service a which longer we times into Taiwanese a are to product lead see with managed platform, delivering is this this And cost. really established We on development. betting takes performing. the see relatively implement sportsbook MTS we in operator. lower we which can managed that Lottery.And the and platform in a we the the something on we integration. management longer up and services, here We what MBS. That with the longer, operators see Looking scale. really in you take the to of a MPS a The risk the building operators, finally can convert XX% very is we And next is MTS. It is looking the quickly sensational management. the that do will betting the bit for it XX% with predict scale showed but slower

Shaun Kelley

global gain bit you again little of portfolio? leverage, on margin experienced anything margins. same broader is to to start a just operating across of that's in of obviously, betting segment driving follow-up, and out just, year But specifically idea. rights side? the Is else pressure that the maybe mean, that the anything segment out World Or to as expect then there you amortization a that And I Rest sports level the call Great.

Gerard Griffin

hitting I Rest our the in No, of scale. the that the part global due rights. made to cost continuing it's the sports would of invest of is our platform think point largest be we're We you with to partially obviously, which majority World,

at the about sort you over world is to the of expect -- markets. see and similar. very various the more forward, actually the made is look company World of coming As of you can business years. moving you World. view We expect and I of do -- the we've expect developed Rest total of Rest very of about know the World Rest the rest reasons our We to years think the We leverage some all over coming comments prepared And remarks. out of of for strongly said some still questions operating in grow

total follow similar leverage for and the which to of to out a means operating 'XX flow expected XX. coming 'XX company, is World of Rest yes, So

Carsten Koerl

Thank you, joining back our call. operator. We'll earnings for turn us everyone, the for it to

Operator

program. you Thank the conclude This for does your participation.

have a Everyone, disconnect. now may day. great You

Sportradar (SRAD) 20 Mar 242023 Q4 Earnings call transcript