NASDAQ:SRAD Sportradar Group Q4 2024 Earnings Report $23.70 +0.23 (+0.98%) Closing price 05/2/2025 04:00 PM EasternExtended Trading$23.72 +0.02 (+0.06%) As of 05/2/2025 07:58 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast Sportradar Group EPS ResultsActual EPS-$0.00Consensus EPS $0.04Beat/MissMissed by -$0.04One Year Ago EPSN/ASportradar Group Revenue ResultsActual Revenue$307.00 millionExpected Revenue$294.60 millionBeat/MissBeat by +$12.40 millionYoY Revenue GrowthN/ASportradar Group Announcement DetailsQuarterQ4 2024Date3/19/2025TimeBefore Market OpensConference Call DateWednesday, March 19, 2025Conference Call Time8:30AM ETUpcoming EarningsSportradar Group's Q1 2025 earnings is scheduled for Wednesday, May 21, 2025, with a conference call scheduled on Wednesday, May 14, 2025 at 8:30 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Annual Report (20-F)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Sportradar Group Q4 2024 Earnings Call TranscriptProvided by QuartrMarch 19, 2025 ShareLink copied to clipboard.There are 11 speakers on the call. Operator00:00:00Good day and thank you for standing by. Welcome to the SpotRadar Fourth Quarter twenty twenty four Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please note that today's conference is being recorded. Operator00:00:25I will now hand the conference over to your speaker host, Jim Palmbassi, Senior Vice President of Investor Relations and Corporate Finance. Please go ahead. Speaker 100:00:34Thank you, operator. Hello, everyone, and thank you for joining us for SportWriter's earnings call for the fourth quarter and full year 2024. Please note that the slides we will reference during this presentation can be accessed via the webcast on our website at investors.sportradar.com and will be posted on our website at the conclusion of this call. A replay of today's call will also be available on our website. After our prepared remarks, we will open the call to questions from analysts and investors. Speaker 100:01:04In the interest of time, please limit yourself to one question and one follow-up. Please note that some of the information you will hear during our discussion today will consist of forward looking statements, including without limitation those regarding revenue and future business outlook. These statements involve risks and uncertainties that may cause actual results or trends to differ materially from our forecast. For more information, please refer to the risk factors discussed in our annual report on Form 20 F and Form six ks filed with the SEC along with the associated earnings release. We assume no obligation to update any forward looking statements or information which speak as of their respective dates. Speaker 100:01:43Also during today's call, we will present IFRS and non IFRS financial measures and operating metrics. Additional disclosures regarding these measures and metrics, including a reconciliation of IFRS to non IFRS measures, are included in the earnings release, supplemental slides and our filings with the SEC, each of which is posted to our Investor Relations website. Joining me today are Karsten Kurl, our CEO and Craig Celenstein, our CFO. And now I'll turn the call over to Karsten. Speaker 200:02:13Good morning, everyone. We are pleased to be speaking with you today. This has been a tremendous year for us both financially and strategically. Our strong performance was fueled by the continued execution of our growth strategy and underpinned by our core competitive advantages. This includes the depth and breadth of our sports coverage, best in class product portfolio, unmatched global distribution network and cutting edge technology. Speaker 200:02:44As you may have already seen this morning, we announced that we are further expanding our leading global content portfolio as we entered into an agreement with Endeavor and WME IMG to acquire IMG Arena and its global sports betting rights portfolio. I'm incredibly excited about this acquisition, which enhances our footprint in some of the most metropolitan sports, including tennis, soccer and basketball and will deliver significant value to our clients, partners and shareholders. A deal once closed is expected to be immediately accretive to our business and margins. I will talk more about this deal and the benefits momentarily, but first I'd like to discuss some of the highlights from this past year. We delivered on our promises and ended 2024 with a great quarter across the board, capping another consecutive year of above the market growth and ahead of our already raised expectations. Speaker 200:03:51Importantly, this strong performance flows through to our bottom line as we reach an inflection point in our operating leverage earlier than anticipated. Going forward, we are well set for multi year margin expansion and significant cash flow generation. Turning to our strategic highlights. There were a number of key achievements this past year that reinforced our competitive position and strong growth profile. Let me start by discussing how our deep and robust content portfolio is powering growth. Speaker 200:04:29We have the broadest coverage of the most petapoint sports in our industry, which provide us with market leading data ports as we have now secured all our major sports content on the long term, including basketball, soccer, hockey, tennis and baseball. This gives us significant visibility on a key part of our cost structure as well as a long runway to innovate, expand and grow our new product offering and drive our content ROI. I'm very pleased with our recently announced expanded partnership with Major League Baseball. The deal runs through 02/1932 and is expected to be immediately accretive to our business and margin. We are now the exclusive provider of MLB official data for betting, media as well as audio visual content across our client network around the world. Speaker 200:05:27The global baseball market is continuing to expand at the same time as we see increasing sports betting legalization in markets such as Mexico, Korea, Taiwan and anticipated future markets like Japan and India. Given our global reach, we believe we are the only sports technology company that can help the league engage fans and betters all over the world and help unlock new revenue opportunities. As part of the agreement, MLB has also taken an equity stake in Spodrada further solidifying our long term partnership. The disciplined approach we have taken with our existing Spodrides and the strong returns we are generating is what gave us confidence and the opportunity to acquire the portfolio of rights from ING Arena. Maximizing the value of high demand content for our clients and lead partners is what we do best and this portfolio comprised of relationships with over 70 RISE holders and covering approximately 39,000 official data events and 30,000 streaming events across 14 global sports on six continents provides a variety of growth avenues. Speaker 200:06:48Importantly, approximately 70% of these rights are spread across the top three sports for global betting turnover. Basketball, soccer and tennis greatly enhancing our status as the number one content provider in core betting sports, while also expanding our content offerings in emerging live betting sports. Prominent global properties include Wimbledon U. S. Open Roland Garros in three of the four Grand Slams as well as the Major League Soccer, German Dave Pickup, EuroLeague Basketball and PGA Tour among other Tier one properties. Speaker 200:07:30Content is the fuel of our engine. We are uniquely positioned to integrate and monetize these rights seamlessly based on our highly scalable technology platform and broad client network. This portfolio will accelerate Sporadar's robust revenue, adjusted EBITDA and free cash flow growth and will be margin accretive upon close. From a transaction structure standpoint, we are not making any payments to Endeavor. Instead, Endeavor will be providing financial consideration of $225,000,000 including cash compensation of $125,000,000 to SportRater and up to $100,000,000 to certain SportRIGHT holders, which will reduce our future obligations. Speaker 200:08:24There will be regulatory review in certain international territories and we anticipate that the deal will close in fourth quarter of this year. We expect to replicate with these rights the success we had with our new MBA and ATP deal in 2024. Both the MBA and ATP have significantly enhanced distribution of our core data, and audiovisual or AV products. This content helped us to provide most comprehensive video offerings for sportsbooks and their customers powering 450,000 live AV streams annually, as well as live betting uptake and foresight and other visualization solutions that capture the play on the field. Access to deeper, richer data from our content partnerships combined with our advanced proprietary technology is fueling our next generation of hyper personalized products, changing the way that fans interact with sports. Speaker 200:09:32We are automating our data collection for faster collection on a much greater scale. We have made great invoices and are now collecting live data on approximately 50% of our matches through automated means by harnessing computer vision technology. To put this into a context, we can now collect up to 100,000 data points in a single match, which is nearly 100 times the amount of data collecting through traditional collection methods. We demonstrated this in January at our Standard Eyes, the biggest batting and gaming trade show with live three on three basketball games played to highlight how our company's technology is used to power product at every stage of the sports betting value chain from automated data collection to data visualization and in play betting. We are already working on a number of additional ways to leverage this deeper data to further personalize the Spotsane experience with tailored content, boosting engagement and stimulate more betting opportunities. Speaker 200:10:45A case in point is Foresight, which harness the deeper data to enhance fan engagement and support the growth of in play betting. With the average time spent on Foresight stream clocking in at 24% longer as compared to a standard stream, it is delivering on that promise. More time spent watching the games means more opportunities for fans to dive deeper into the action, growing engagement with the sport and creating new betting opportunities. We have already rolled out Foresight across tennis, basketball and table tennis and later this year, we will roll it out to soccer. Additionally this year, we will launch an enhanced foresight offering that will create even more immersive and engaging fan experiences. Speaker 200:11:36We are also advancing the in play betting experience, introducing innovative micro markets, offering new betting opportunities on moments of the game industry hasn't seen before. We have recently launched micro markets for ATP tennis matches and NBA games creating an additional 1,500 new betting opportunities per tennis match and 1,200 new betting opportunities per basketball game. We are planning to launch a number of other sports including football, baseball and ice hockey this year to open up potential new revenue and value for our clients with AI driven products based on our exclusive content. Another highlight of 2024 was the performance of our managed trading services where we managed to trade risk of our small group customers. MPS is a key value proposition for our clients consistently delivering high turnover and margins. Speaker 200:12:39In 2024, MTS turnover reached EUR 35,000,000,000, which makes us a top bookmaker globally and we achieved a 10.7% margin for our clients, an improvement compared to 9.8% in 2023. This performance is a clear testament for our AI driven market leadership in technology. Our proven trading and risk management capabilities combined with the diversity of sports MTS offers enables us to achieve such strong results and mitigate the impact from any single sport. This performance underpins the increasing demand for this core product as most sportsbooks look to outsource their trading interest management capabilities to us. In fact, we have added a number of new sportsbooks clients in the past year and now provide MTS service to over two fifty books and encompasses over 500 sportsbooks brands. Speaker 200:13:43MTS has value outside the pure trading and risk management, providing us with unique insights into betters across hundreds of books. By managing the best of 80,000,000 unique betters last year alone, we are able to gain a deeper understanding of their preferences and dynamics. This insight informs our ads business and our ability to target a wider and engaged export for customers at a lower acquisition cost than other peers. We enhanced this business in 2024 with the launch of the new channel, including paid search and audio and the addition of affiliate marketing capabilities through XL Media, which was acquired at the end of twenty twenty four. Global expansion is a part of our growth story, particularly in emerging markets like Brazil, where we opened an office last year. Speaker 200:14:40With 80 license granted to date and as well as over 100 portfolks expected to enter the market, for sales competitive market presents opportunities to sell our best in class products and services to customers with diverse needs. We made a strong start into leveraging now our existing partnerships with global operators entering the market while expanding ties with local operators seeking additional capabilities. In fact, we have already seen 35 new sportsbook clients sign on for Ampea and we continue to see this growth. Additionally, we are also using this region to pilot our marketing services for iGaming. IGaming is a natural adjacency for to sports betting with the majority of our customers in Brazil offering both sportsbooks betting and iGaming. Speaker 200:15:37As sports bettors often also engaged in iGaming, we can leverage our marketing and cross selling capabilities to attract, engage and retain these hunters for our customers. The iGaming space is a natural expansion given our established customer base who have operating license for both sports betting and iGaming. We have already proven out this capability in iGaming in some European countries and Brazil now looks like the right market to scale this initiative with a three sixty degree solution. It starts with helping Spokbooks acquire customers through our ad business, then providing them data ops and platform services enhance their performance. We can further engage and retain those customers by converting them to iGaming customers through AI driven campaign management. Speaker 200:16:35This covers all aspects of acquisition, stimulation, retention and operation for modern sportsbook and our gaming operator. Wrapping up, in this past year, we have executed strongly both operationally and financially against our growth strategy. Our strong content portfolio, which will be further enhanced with our announcement this morning, our global footprint and our investment in development of the next generation product are providing us with the opportunity to generate continued robust growth ahead. With increased cost visibility from our long term deals and our financial discipline, we are at an inflection point for significant value creation. As we look at our twenty twenty five roles, we expect to continue to deliver robust growth. Speaker 200:17:30We are leveraging our investments in technology and AI to automate, commercialize and increase accessibility to support data for a broader ecosystem and we expect to continue to deliver margin expansion. I couldn't be more excited about our future and look forward to speaking to you more about this at our upcoming Investor Day on April 1. Now I will turn it over to Craig. Speaker 300:17:59Thanks, Karsten, and thank you everyone for joining us this morning. As Karsten highlighted, 2024 was a year of strong execution as we generated continued operating and financial momentum by leveraging our best in class content and robust product portfolio across our broad global customer base. The significant value we are delivering to our league, media and sportsbook partners is translating into record financial results and we have clearly reached an inflection point with strong top line growth translating into margin expansion and cash flow generation. I will focus the majority of my comments on our fourth quarter performance, but it is important to recognize the meaningful shareholder value that was created over the course of the past year. Total company revenue for the full year of $1,100,000,000 dollars increased $229,000,000 or 26% compared with 2023, driven in large part by higher spending from our clients, including significant incremental contributions related to our new ATP and NBA deals. Speaker 300:19:02Our growth was broad based with strength across our product portfolio, including betting and gaming content, managed trading services and our ads business. We also generated strong gains both in The U. S. And globally with The U. S. Speaker 300:19:16Up 58% year on year and the rest of world up 19%. Our U. S. Revenues have increased to 24% of our total revenue, up 500 basis points versus a year ago as we capitalize on the continued rapid domestic market growth and the growing demand for our innovative products and depth of content. Most importantly, the steps we have taken to align our cost base with the revenue opportunities is enabling us to deliver significant operating leverage with the 26% revenue growth this past year translating into 33% adjusted EBITDA growth. Speaker 300:19:50Adjusted EBITDA of $222,000,000 for the year increased $56,000,000 compared with a year ago and the company increased full year adjusted EBITDA margins by over 100 basis points to 20% despite the initial year increases associated with the new long term ATP and NBA deals. Turning to the fourth quarter in more detail, record revenues of $3.00 $7,000,000 increased $54,000,000 or 22% compared with the fourth quarter a year ago, as we continue to have success growing our client relationships, increasing the uptake of our leading products and solutions as demonstrated by our customer net retention rate of 127%. Looking at the individual product groupings, growth was diversified with broad based increases across both bedding technology and solutions, as well as our sports content technology and services group. Betting technology and solutions revenue of $247,000,000 delivered 21% growth versus the fourth quarter a year ago, driven primarily by a 30% year on year increase in betting and gaming content, including 30 growth at our streaming and betting engagement products, most notably due to strong growth in audiovisual revenues. Odds in live data also continued to perform well, up 30% year over year, benefiting from the strong U. Speaker 300:21:09S. Market growth as well as from additional customer uptake of our products along with premium pricing for new content such as ATP. Additionally, managed trading services continued to grow strongly year over year due to higher trading margins and more betting activity from existing and new clients of our sportsbook partners. As expected and as we highlighted on our last call, overall managed betting services was down slightly as the success at MTS was offset by comparisons to last year's initial setup revenue related to hardware deliveries for the Taiwan Lottery deal. Moving to our other product group, sports content technology and services also delivered strong results this past quarter with revenues of $60,000,000 increasing $11,000,000 or 23% year on year led by marketing and media services growth of 22% due primarily to the continued growth of our ads business as we saw a variety of sportsbooks investing in marketing campaigns during the fourth quarter. Speaker 300:22:09Similar to the full year, we had broad based growth geographically during Q4 with The U. S. Business increasing 41% and the rest of the world increasing 16% as we continue to outpace the sustained market growth across the globe. The revenue growth across our product portfolio translated to significant adjusted EBITDA growth with adjusted EBITDA of $61,000,000 in Q4, increasing $21,000,000 or 53% year on year. As expected, now that we've begun to lap the first year of our new major sports rights, we are starting to deliver significant total company operating leverage with adjusted EBITDA margins in the fourth quarter expanding over 400 basis points to 20% as we continue to be diligent across our cost infrastructure. Speaker 300:22:55Looking at the individual cost buckets, I will be speaking to adjusted expenses to provide a breakdown of the expenses that impact adjusted EBITDA. We have detailed in the earnings release and the financial section of the earnings presentation, the bridge from IFRS amounts. This past quarter, sports rights expenses increased to 37% to $103,000,000 in the quarter due primarily to the new ATP rights, which are driving significant revenue growth as we upsell solutions to existing clients as well as add new clients given the premium nature of this content. We continue to be disciplined and strategic in building up our premium rights portfolio. And with the recent extension of our long term partnership with Major League Baseball, we have significant visibility moving forward, having secured all of our largest rights under long term deals. Speaker 300:23:44Given this visibility, we have full confidence in our ability to drive operating leverage across our sports portfolio and see significant opportunity to drive incremental value as we develop and scale our premium products and solutions for our global customer base. Turning to people, adjusted personnel expenses were $73,000,000 in the quarter, up 9% year on year, driven primarily by increased headcount to support growth opportunities and by higher incentive compensation given the financial performance this year. Importantly, adjusted personnel expenses were down approximately two seventy basis points as a percentage of our revenue and we will continue to closely manage headcount to ensure we are focusing our talent and resources on the most profitable growth opportunities, while unlocking additional operating leverage. In addition to the leverage we delivered across our personnel costs, adjusted purchase services expense of $44,000,000 decreased 4% versus last year as increased cloud and IT costs to primarily support growth initiatives as well as higher traffic costs related to the growth of our ads business was more than offset by the initial setup costs associated with the Taiwan Lottery in the fourth quarter a year ago. Overall adjusted purchase services declined approximately three seventy basis points as a percentage of revenue. Speaker 300:25:05And moving forward, we will continue to further leverage our existing infrastructure while investing in our products portfolio. Lastly, adjusted other operating expenses of $27,000,000 increased 5% versus last year and declined approximately 140 basis points as a percentage of revenue. Overall, there is inherent scale and operating leverage in our business and we expect to meaningfully expand total company margins beginning in 2025 as we drive further revenue opportunities, closely manage our cost infrastructure and start to fully realize the benefits of sports rights being amortized on a straight line basis over the life of each contract. We generated a net loss of $1,000,000 in the fourth quarter versus the net profit of $23,000,000 reported in the fourth quarter a year ago as the $21,000,000 improvement in adjusted EBITDA and $21,000,000 tax benefit due primarily to the recognition of deferred tax assets were more than offset primarily by the $65,000,000 change in unrealized currency losses, mostly associated with the U. S. Speaker 300:26:09Dollar denominated sports rights. Turning to the balance sheet, we continue to be in a strong liquidity position, closing the quarter with $348,000,000 in cash and cash equivalents and no debt outstanding. As anticipated, our cash balance declined $20,000,000 from the end of the third quarter, primarily due to the acquisition of the affiliate marketing assets of XL Media, as well as from the timing of sports rights payments. For the full year, we generated free cash flow of $118,000,000 versus $50,000,000 in 2023, led by strong cash from operations, primarily as we leverage our expanded sports content portfolio and implement additional cost and working capital management measures. We continue to make meaningful strides with regards to increasing free cash flow conversion and delivered 53% conversion in 2024 versus 30% in 2023. Speaker 300:27:02Our balance sheet will be further enhanced given the structure of the IFG transaction announced this morning. In conjunction with this transaction, aside from the additional free cash flow we anticipate generating, we will receive approximately $125,000,000 over a two year period following the close. Given the strength of our balance sheet, our expectations around significant additional free cash flow generation moving forward and the cash we will receive in the transaction, we are well positioned to be able to invest in expanding the long term growth potential of the company, whether organically or through M and A, while also returning capital to shareholders. To date, we repurchased approximately $20,000,000 worth of our stock at an average price of $11.44 under our $200,000,000 share repurchase program, including $6,000,000 in the fourth quarter. Given the ING transaction, we have been restricted from buying back shares, but we continue to believe that our shares are undervalued given the strong growth we are delivering and the expectations for significant further margin expansion and cash flow conversion in the future. Speaker 300:28:05We anticipate significantly accelerating repurchases under our buyback program when our trading window opens. Turning to our expectations for the year ahead, the strong operating and financial momentum we generated throughout 2024 is poised to continue in 2025. Given the uncertainty around timing of closing, our 2025 guidance does not include any impact from the acquisition of IMG Arena and we will incorporate the upsides of the acquisition into our guidance once the deal closes. However, it is important to note that the acquisition of the content portfolio from IMG will not only accelerate our revenue, adjusted EBITDA and free cash flow generation, but it is attractive from an ROI perspective and will be accretive to our overall adjusted EBITDA margins. For the full year 2025, we anticipate total company revenue of at least $1,273,000,000 dollars representing year over year growth of at least 15% as we outperform the sustained global market expansion and further capitalize on our high demand content portfolio and innovative product suite. Speaker 300:29:12At the same time, we anticipate adjusted EBITDA of $281,000,000 or 26% year over year growth with at least 200 basis points of adjusted EBITDA margin expansion in 2025 despite the increased cost associated with our expanded Major League Baseball partnership. As we look at the cadence for 2025, we anticipate margins will be in the high teens in the first half of the year and will accelerate in the second half of the year with the highest margins in the third quarter given the phasing of sports rights costs within the year. Additionally, in the year ahead, we will continue to focus on converting more of every dollar to cash flow and anticipate growing our free cash flow conversion rate from the 53% conversion we delivered in 2024. Overall, the strategic and operational steps we have taken over the last several years generated another year of strong results in 2024 and has us poised to build additional shareholder value in the years ahead as we deliver sustained long term revenue growth, while converting more and more of each dollar into EBITDA and free cash flow. With the market continuing to expand, with Sportradar's proven track record of delivering additional value to our partners across the global sports ecosystem through product innovation and development and with a cost structure that has high visibility moving forward, we are very much at an inflection point of revolution and look forward to discussing the opportunities that lie ahead in further detail at our Investor Day next month. Speaker 300:30:40Thank you for your time this morning. And now Karsten and I will be happy to answer any questions you may have. Operator00:31:12Our first question coming from the line of Brian Sigdahl with Craig Hallum Capital Group. Your line is now open. Speaker 400:31:21Hey, Carson, Craig. First, kudos on the structure of the IMG deal. Curious, if anything, what you're taking from a balance sheet or liability standpoint besides the rights contracts at fair market value? And then on the cost perspective, people, just what's all included in here, what's not? And then on the revenue synergy potential, we've seen you guys cross sell, up sell, broader distribution, etcetera, on ATP and the rights you've organically won in the past. Speaker 400:31:53But curious if you expect kind of a similar, quicker uplift from these rights? Speaker 200:32:01Hi, Ryan. Karsten here. I'll take the first part and please send the liability and the people to Craig. So first, if we for a moment think into the future, if we are sitting here in one year time, I think we will realize how great of a deal that was. It's a milestone for Spodrada in Speaker 300:32:22the Speaker 200:32:22development. I'm very proud of the team that we managed this. It is a very good day for Spodrada. Having said this, let's put the deal into two aspects. One is the strategic one. Speaker 200:32:35The second one is the commercial one. Looking to the strategic, we scale and we are the premium provider for the B2B sports. So that makes us even stronger. Looking to the coverage, we expand the coverage, and we do this in our key sports. That's tennis, that's basketball, that's soccer. Speaker 200:32:54That's very complementary. Looking to our ability, and we touched on this, we saw what has happened with ATP, which we took from IMG beginning of twenty twenty four. We managed this property significantly better, and that was given the scale, which we have. We have 800 bookmakers. We have 900 media companies connected to this machine. Speaker 200:33:17And this is a well oiled machine. We are global from a footprint, and we simply have the leverage on this. Looking now to the commercials, the deal is accretive to the revenues, obviously. It is accretive to the margin and it's accretive to cash flow. So the ROI, which we deliver with this deal is sensational. Speaker 200:33:37And that is the reason why we are so excited about it. It took quite a while to get it done. There are a lot of details, as you might imagine. And it's now when I got the first messages from our clients, they are going on sports, which I also find very exciting. So we get some messages around snooker. Speaker 200:33:55We get something around golf and me as a golfer, of course, I have a passion for those things. But there is a good opportunity to even increase our client network here. And now I hand over to Greg for the people and for the liabilities. Speaker 300:34:12Sure. Thanks, Ronen, for the question. So we are acquiring the assets and liabilities of the IMG Arena business, and we will provide more color on what that entails once we get closer to closing. Obviously, that will change a little bit between now and closing. That said, the vast majority of what we're acquiring is the sports rights themselves. Speaker 300:34:31So for the most part, that is the asset that we're acquiring as part of this transaction. When it comes to other aspects of the IMG arena business, one of the reasons that we're so confident that we'll be able to achieve some nice accretive margins for our own business is that there's some significant operational synergies between two businesses. Obviously from a technology perspective, from a scouting perspective, from an overhead perspective. So we do see an opportunity to as we move forward to reduce the cost structures of the combined entity as we head into the next phase of our evolution here. So there will be some nice opportunities to expand more moving forward. Speaker 400:35:07Excellent. For my follow-up question, looking at Slide 11 on Brazil, I know it's early, but want to focus on MTS. So you guys have signed up almost half of the sportsbooks on MTS. Curious what's driving that outside success and demand for MTS specifically in that market? And then within that mix, is it mostly full kind of everything MTS capabilities or some of these just taking specific sports for the MTS side? Speaker 400:35:35Thanks. Speaker 200:35:37So one thing is, of course, the team, Ryan. We have a super, super strong team in Brazil. We created the office in Sao Paulo. So they are doing an excellent job. Yesterday, we also signed an integrity partnership with the SAKO Confederation there. Speaker 200:35:53So you see the pieces are going together the same way like we did it in The U. S. So it's a very good team performance. 35 MTS bookmakers is a strong testament for this. And it's simply we are providing the economy of scale for them. Speaker 200:36:07They are doing the marketing, they are doing the branding, and we keep the house clean and we do a good operation. But the very exciting piece in Brazil is iGaming. As you know, the bookmakers are making roundabout four times more money with an iGaming client than the sports betting. But sports betting is the acquisition channel. And this market is our test market for the three sixty degree scheme, which I said in the script. Speaker 200:36:32We start with the acquisition. We use our ads product. It's problematic advertising. We convert this better than anybody else. So then we offer the data, we offer the ops, the platform or the MTS, whatever the client wants to have, and with Wipes, where we do the channel optimization and the campaign management based on AI, we can switch that over into the churn management and get it into iGaming, campaigning and all those things then. Speaker 200:36:59And in between, we have the acquisition tools where we do the entertainment, the scores, the detailed match analysis, and that makes a three sixty degree system here. I'm very proud that we could now already sign up with two companies for iGaming. It's very early innings and what I'm telling you now is happening in the last two weeks, but we see a strong pickup. So Brazil is a market where it's very vibrant, lots of opportunities. And so we have a very strong team on the ground. Speaker 200:37:33That is the reason why the results are so good. Operator00:37:38Thank you. And our next question coming from the line of Michael Graham with Canaccord. Your line is now open. Speaker 500:37:49Thank you. And again, congrats on a really great quarter and momentum. I wanted to ask about MTS a little bit deeper and there are really two questions. One is just can you comment on how big of an impact the sale of the Taiwan Lottery hardware sales last year had on organic growth, like should we talk about the organic growth in MTS? And then just going deeper into your 100 basis points of margin expansion, you mentioned AI, but maybe a little more detail on what drove that expansion and how are you thinking about what that does in the coming year as you kind of get that product more fully ramped up? Speaker 200:38:37Joe, do you want to go on? Speaker 300:38:39Yes, I'll handle the first part of the question. Carson, you can handle the second. So, Michael, thanks for the question. When you think about the impact of the Taiwan Lottery a year ago, the overall MBS segment was down slightly in the fourth quarter. If the Taiwan Lottery one time set of fees had not been received a year ago, the growth in the MBS business in the fourth quarter would have been in the high 20% range, so similar to what it was for the rest of the year with regards to the MBS segment. Speaker 300:39:07As far as MTS specifically, the MTS segment in the fourth quarter, we don't talk about it specifically, but it obviously makes up the majority of that piece of our business. So you can assume that the growth in the fourth quarter was somewhere very much in the mid to high 20% range. Speaker 200:39:24Maybe I have. So Taiwan was 2,000 shops, which brought the terminals for accepting sports betting and also the lottery tickets. So that is a hardware investment. It was a one off. And as Greg rightly said, without this, we are solidly in the 20s and above. Speaker 200:39:45Looking to the 100 basis points margin expansion, that's fairly simple. So we are sitting on two big pools from a cost perspective. We are sitting on salaries and employee costs. We managed to run a very tight ship here, and we will continue to do this with a growth in roundabout 10% to 11% going forward. Looking now into the rights, we expanded massively in 2024 with ATP and of course also with the MBA. Speaker 200:40:15So that was an uplift of 65% and we could mitigate this. If you look now to our rights going forward for the next six years, this is pretty much fixed. Now with the latest with Major League Baseball, we have the security and stability in our rights portfolio. We have no cliff and it's predictable costs, which we see here. So there is not any kind of uncertainty on the sport rights. Speaker 200:40:40Having those two elements, that gives us a lot of comfort to show margin leverage in the years going forward. Speaker 600:40:48Okay. Thanks very much, Carsten and Craig. Speaker 300:40:52Thank you. Operator00:40:55Thank you. And our next question coming from the line of Gurney MacTiernan with Needham and Company. Your line is now open. Speaker 500:41:05Great. Thank you for taking the question. I want to start on IMG. And sorry if I missed it, but just how big are they currently from a revenue and EBITDA perspective? And do any of the comments on margin and free cash flow accretion contemplate synergies? Speaker 200:41:23Craig, do you want to go on this? Speaker 300:41:25Yes, sure. Bernie, thanks for the question. So obviously, I'm not going to talk to what they are today for themselves, but I can talk to what we think it would have been for us if we had to own this asset for the full year. When you think about our revenue guidance of about 15% for the current year, if we had IMG as part of our overall portfolio starting January 1, our estimation is that our revenue growth would be somewhere in the high 20% range. So meaningful opportunity for us as a company as we ultimately move forward and leverage this across our portfolio as Karsten indicated like we did with ATP already. Speaker 300:42:00So, you see unique opportunities for us to leverage these assets across a variety of our relationships globally. In terms of the margin expansion opportunity, we do believe that these assets, when put into our, what I would call ecosystem and into our engine, will have higher margins than our existing margins moving forward. So absolutely the margin accretive for us because we'll be able to leverage this content across the wide global distribution base. Speaker 200:42:29Maybe I have for one piece of this content, the samples. So tenants is something where we developed four sites. We developed a light bus. Now we are getting three of the four grand slams additionally on top of what we have. Putting this into the existing products gives us a natural leverage there. Speaker 200:42:49And if you look now from a tenant standpoint, having the top tier tenants and having ATP in between there and UTR at the low level, that makes the package, which has done high demand from our clients. So that gives us additional leverage. Speaker 500:43:06Understood. Thank you. And just as a follow-up, the Slide number eight that you guys put together on sports rights was really helpful. Is there any way to think about the average term remaining for the major contracts or IMG? Speaker 200:43:22Yes. So the major contracts from IMG are roughly roundabout three years. Speaker 700:43:28Got it. Okay. Thanks, Larsen. Thanks, Rick. Appreciate Speaker 100:43:31it. Thank you. Operator00:43:34Thank you. Our next question coming from the line of Robin Farley from UBS. Your line is now open. Speaker 800:43:44Great. Thank you. Going back to the ING deal, can you give us a sense of how much of the delta in EBITDA performance, clearly it's losing money for IMG last year. So the delta between that and you believing that it will be higher margins for you if you owned it for full year 2025. How much of that delta is the $225,000,000 and is that all spread over two years? Speaker 800:44:13I know at least part of that was spread over two years. How much of the delta comes from that sort of that guaranteed piece of it versus how much of the delta has to come from sport radar putting it in your system and your scale and all of that, just to get a sense of how much of the delta is sort of locked up versus based on your performance? Speaker 200:44:39Maybe I give it a first try and then Greg weighs in. So we can't speak for IMG and Endeavor, but what we did here is a very careful analyze of the portfolio. We looked to each and every ride. We looked to the revenues, what they generate, and we looked to our up selling abilities and the cross selling abilities. We looked into, can we use this content if we put it in our engine to get more revenue channels than they have? Speaker 200:45:07And then we're coming to a picture and saying, well, we believe with this content, we can generate those revenues. And that was first criteria. Second was, is this accretive to our EBITDA? That is a very, very clear point of decision and saying, if we are doing something which is not accretive, we are not interested. And that's the reason why we did the deals. Speaker 200:45:30So it's accretive to our EBITDA and it's accretive to cash. We needed some money to repair some deals, only a few, which are probably not in the current market from a pricing perspective. And that's what you see in the segments where you said round about $100,000,000 has been used in prepayments to the leaks to get those deals more in line with market conditions that we can monetize on them. Speaker 300:45:58Let me add a couple of things just in terms of how it works with regards to our financial statements. Karsten already talked to how we're going to monetize these assets moving forward. But there's really two pieces to the cash components that were paid. So the one is that there are some prepayments that are made to the league that will actually help us from a free cash flow perspective moving forward just to be free cash flow margin accretive for us because we have less of an obligation from a cash perspective to these rights. The other piece of the cash, the right to our balance sheet will allow us to invest that cash in future growth initiatives. Speaker 300:46:31The last part of this that's important to know is that when we take these assets into our portfolio, we write them down to the fair market value that they have for us as a company. And because we do that, it also allows us to have a lower cost base on these assets than the initial rights were themselves, I would imagine for IMG. So that's how you should figure the three different components of the compensation. Speaker 800:46:56Okay. And based on your commentary about where your revenue growth would have been, it sounds like the revenue you're saying if you had had it for the full year in 2025 would have been maybe $150,000,000 in revenue. Is that should we think about that as being what you're acquiring or is that where you would have gotten that if you upsell and cross sell everything that you're getting from ING? Is that $150,000,000 kind of including what you think you would have added from upselling and cross selling? Thanks. Speaker 300:47:34Yes. Let me be clear, Robin. That is what we would have had from this asset, we believe in 2025, we had that asset as of January 1. That said, we can't predict exactly what the revenue will be upon close because it depends on how long that close ultimately takes. Some of these rates will obviously have shorter timeframes, they may roll off and it would be up to us whether we want to renew them or not. Speaker 300:47:56But when the time comes to close the deal, we'll have a much better feel for what the next twelve months will look like. We'll give you an update at that point. Speaker 800:48:04Okay. So that does not include you guys upselling and cross selling, you're saying? Speaker 200:48:10It does nothing. Okay. Speaker 800:48:13Thank you. Operator00:48:17Thank you. And our next question coming from the line of David Katz with Jefferies. Feline is now open. Speaker 900:48:27Hi, morning, everyone. Just personally going back to the topic of the day on the acquisition, Can you just color us in a little bit on how you thought about valuation on it? And maybe educate us a bit on kind of what how you thought about market value today and what the implication is for other rights that you sort of already own and already acquired? Thank you. Speaker 200:49:01David, we are doing this in the same way like for every right. So we are looking to the ROI from a ride acquisition. We are looking to what we believe we can make with this ride in the market, our scale and the products which we have. Nothing different than with this acquisition. We looked to all the 70 rights in the 14 sports, and we did the same exercise. Speaker 200:49:25What we have to do here on top is we saw how IMG can monetize those rights, And we had to do the exercise what is in there for us with cross selling and out selling. And partly, we have some products, which IMG doesn't have. So we have MTS, we have the life of the set where PP. So that was coming then on top of this. For most of the rights, which are in this portfolio, we have been a participant in the center. Speaker 200:49:53So we are interested in those rights because they are in our sweet spot. And the sweet spot specifically is soccer, is basketball and is tennis. There are now some more opportunities, which are not in our calculation when we're getting a stronger footprint in this sport and when we can scale with more innovative solutions. So there is more to come. But it is a normal ROI, which we do sport by sport. Speaker 200:50:21Same way like we evaluate order wise. And there is a target margin, which we want to achieve, and that has been done in the same way. Like we do it normally for rights. And as Craig said on the beginning, it's an asset acquisition. So we are interested in the sport rights. Speaker 200:50:37It is that is the key focus here. Speaker 900:50:43Understood. And in another direction is my follow-up. Craig, I think you may have mentioned and it was a bit choppy on my line about share repurchases and acceleration. I just want to make sure I heard right. And if you could add some color there, that would help too. Speaker 900:51:00Thanks. Speaker 300:51:02Sure. When you think about the cash position the company is in today, the free cash flow that we're generating as a company, which is obviously accelerating just as part of our core business, as part of our base business. And then you layer on top of that the, what I would call the additional capital that we're going to have as part of the I and G transaction. And then you factor in that there is only so much money we can invest back into our business. And there's no obvious large M and A opportunity out there outside of what we're doing right now, then you see an opportunity to use that capital in a variety of ways. Speaker 300:51:37And one of those ways will be to return capital to shareholders at a more accelerated rate. We obviously have not been able to do that because we preview this information that this acquisition was ongoing. Now that that is behind us, once Flobindale opens up again, we will look to return capital to shareholders. But I will say this, it is always one of three options that we have. We are always looking at ways to invest in our existing core assets. Speaker 300:52:03Given the high margins we have in our existing business, we want to continue to expand the margins in our existing business and we're not going to jeopardize that by putting too much money back into the business. Same goes for any M and A opportunity. It has to be margin accretive for us to do it. So if we can't find either of those two things, then we will go ahead and return capital to shareholders. And because of the cash we have, we do have the ability to do both. Operator00:52:28Thank you. And our next question coming from the line of Michael Hickey with The Benchmark Company. Your line is now open. Speaker 600:52:40Hey, Karsten, Craig, Jim. Good morning, guys. Good afternoon. Congrats on 2024 and your deal, very exciting. I guess, just the first question, Karsten, you've obviously built out a very strong foundation to your business here. Speaker 600:52:55And when you think about rights that you have, the longevity of those rights and the costs associated, and of course, you said your business is inflecting and we saw that in Q4 and 2024 really. So just wondering today, Karsten, your longer term vision, how you see Sportradar evolving over the next three to five years and what are the biggest opportunities for expansion? Speaker 200:53:23So thanks for congratulating on 2024. So it's the first time that we speak about these numbers today in the call, and I think we should celebrate it. So it's a 26% growth. Top line revenue was 33 percent on the EBITDA. We showed margin expansion and leverage. Speaker 200:53:42And it was not expected from the market. I think it was a good year for us 2024. Now looking forward in the digital business globally, to predict five years is really difficult. Ten years ago, when one of our private equity partners asked me for three years, I said I can predict a one. I get with a two in a range that it is in the tolerance with the three, it's getting very difficult. Speaker 200:54:08So looking now forward, we have four business areas. Sports betting, I think we showed that we understand what we are doing. We showed that we understand our two main cost blocks and how to manage this. Going forward, the rights are much more transparent on this. And that applies now also for IMG because we told you we are looking to the ROI in the same way like for our normal rights. Speaker 200:54:34We can expand now into iGaming. We do the test in Brazil. We did a test in some smaller European markets. That would be a sum for us from SEK1.4 billion. So that's a growth opportunity in that sector. Speaker 200:54:47Going forward, we want to expand here. Looking now into the media business, that's an area where I was at the All Stars two weeks ago, and I saw all the big digesters on stage, and I had the pleasure to talk to some of them. It's about hyper personalization. It's about products for generational assault. We are sitting on this. Speaker 200:55:08We are sitting on this data course. We are sitting on the technology and we understand AI. So we are excited about growth opportunities in that media space. Weak partnerships, we are very happy about what we have and we are leveraging this and expanding here. So that is something which gives us the fuel for getting into those verticals. Speaker 200:55:33And then we have only about the last thing left, which there is a business with government and regulators. It's very, very staged. We are there with integrity services. But looking for the funds in gaming, looking into what we can do in this space, we have high hopes here to expand on the timeframe of two, three, four years in that area. I hope that answers a bit the outlook into the future where we see us and well, the 2024. Speaker 600:56:08Yes, nice. Thanks, Carson. And just a follow-up, the I mean, I think you said you're a technology company and we agree. So I guess under the topic of product innovation, how you're leveraging AI and machine learning to enhance your products? And if there's any upcoming innovations within your product suite that you're particularly excited about? Speaker 200:56:35Let me split it in three different categories. One is efficiency. As a sample, we more or less automatize our first level support. We have more than 400,000 support mails asking the first or hitting the first level. We automatize with AI around about 80% of this. Speaker 200:56:54So we are facilitating our data pools and we get a level of quality in there that we could automatize it. So that's a clear efficiency improvement. It happens in many, many places of the company. Legal is one of the departments benefiting from it. So that's something which is the first one. Speaker 200:57:12Second one is how can we optimize the client value? Alphabox is a clear sample for this. And today, we told you that we achieved an uplift of 1%, so 100 basis points on the margin. Most of this is coming from leveraging AI, leveraging our data pools and optimizing this. And then the third one, we call that true innovation, not some buzzwords. Speaker 200:57:39We want to really do a true innovation and that's at the end leveraging the data pool from the fans, leveraging the sport data up to level five data and leveraging the liquidity information which we get. That's something which we will show you on the Investor Day a bit more closely and give you some samples for ROCUS. But that's how we see Speaker 600:58:02ADI. Thanks, Kirsten. Good luck, guys. Speaker 200:58:04Thank you. Thank Operator00:58:08you. And our next question coming from the line of Jordan Bender with Citizens Bank. Your line is now open. Speaker 1000:58:18Good morning, everyone. I want to circle back on the movement of cash related to the deal real quick. So $100,000,000 to the rights holders will be used to restructure those deals. But do the broad assumptions that you provided if you did own the business this year, does that assume that you'll need to exit any of the 70 rights portfolio that IMG owns to get to those levels? Speaker 200:58:43Craig, do you want to go on this? Speaker 300:58:45Yes. No, it does not. We're assuming we're getting all of the rights. It just requires some early payments to some of those rights of some of the future obligations. Speaker 1000:58:55Perfect. And then just on the follow-up on the guidance, fourth quarter growth really strong 22%. For 2025, the implied growth around 15%. How should we reconcile basically the step down in growth between the exit rate in 4Q and then 2025? Speaker 300:59:14Sure, Jordan. So obviously the 2024 year included the step ups that we had associated with both the NBEA and ATP. So they were a big part of the step up in that first year. And then we're going to build off that again starting in 2025. And when you think about the 2025 growth, you're really coming at it from the standpoint of you see market growth somewhere globally around 10%, a little bit less than that rest of the world and certainly larger than that in The U. Speaker 300:59:46S. And then we're going to grow faster than that like we have for several, several years here by increasing the share of wallet that we get from each of our customers as we add additional value to them by giving them additional products or providing additional content. We do see some additional opportunity as we get additional in play versus where it was historically as in play becomes a bigger piece of the pie that certainly helps us from a revenue perspective. And then as Karsten mentioned, we're starting to invest in some of these adjacent markets and that will also provide us an opportunity here moving forward. So those are really the drivers for us for 2025. Speaker 1001:00:22Appreciate it. Thank you very much. Speaker 101:00:24Operator, we have time for one more question. Operator01:00:28Sure. Our last questioner coming from the line of Samuelson with JPMorgan. Your line is now open. Speaker 701:00:36Hi, guys. Congrats on the great quarter guidance and IMG announcement. I guess just following up on that last question for 2025 guidance. How should we kind of think about your sports rights from a leverage or percent of revenue perspective prior to the IMG acquisition completion? I think you've got it to like 200 basis points of margin expansion. Speaker 701:00:57Is it fair to assume fifty-fifty split between sports rights and non sports rights costs in terms of leverage next year? Speaker 301:01:06Yes. Thank you, Sam. I think you actually just answered your own question. That's exactly what we expect for 2025. We expect to get margin expansion across not only our sports rights, but across our continuing infrastructure as a company. Speaker 301:01:18And right now, if I was going to have to lay out what that would be from a breakdown perspective, I'd have about fiftyfifty for the year. Speaker 701:01:26Okay. That's great. And then on the IMG announcement, could you kind of go over the process for regulatory approval? I would assume your peers were maybe looking at this deal, especially with the favorability in the terms. What is your initial sense on how maybe antitrust Speaker 301:01:42is thinking about the deal? Speaker 201:01:47Well, we expect the main antitrust is in The UK, from the Embassy NAS doing this. In The U. S, we have no antitrust issues. So we are under the threshold for The U. S. Speaker 201:02:01Rights and we don't need to file in The U. S. There are a couple of minor jurisdictions. We think we have a very solid argumentation and IMG said by itself in their last quarter that they will discontinue this business. So we think we have a very solid argumentation here that we can close and reach this closing in quarter four. Speaker 701:02:28Great. Thank you. Nice quarter. Speaker 101:02:31Thank you everyone for joining us for our call. I'll turn it back over to the operator. Operator01:02:38Ladies and gentlemen, this does conclude today's conference call. Thank you all for your participation and you may now disconnect.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallSportradar Group Q4 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K)Annual report(20-F) Sportradar Group Earnings HeadlinesSportradar Group AG (NASDAQ:SRAD) Receives $27.00 Average Price Target from AnalystsApril 27, 2025 | americanbankingnews.comWhy Sportradar Group AG (SRAD) Lagged Performance on WednesdayApril 24, 2025 | msn.comDonald Trump is about to free crypto from its chains …Sure enough, Bitcoin took off on the exact day Juan said it would. It's up more than 40% since the election … surpassing $100,000 on Dec. 8 .… Now Juan believes it could hit $150,000 … or higher in 2025.May 3, 2025 | Weiss Ratings (Ad)Sportradar Group (NASDAQ:SRAD) Rating Increased to Buy at Bank of AmericaApril 24, 2025 | americanbankingnews.comSportradar Group AG Announces Pricing of Secondary Public Offering | SRAD stock newsApril 24, 2025 | gurufocus.comSportradar Group AG Announces Pricing of Secondary Public Offering | SRAD stock newsApril 24, 2025 | gurufocus.comSee More Sportradar Group Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Sportradar Group? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Sportradar Group and other key companies, straight to your email. Email Address About Sportradar GroupSportradar Group (NASDAQ:SRAD), together with its subsidiaries, provides sports data services for the sports betting and media industries in the United Kingdom, the United States, Malta, Switzerland, and internationally. Its sports data services to the bookmaking under the Betradar brand name, and to the international media industry under the Sportradar Media Services brand name. The company offers mission-critical software, data, and content to sports leagues and federations, betting operators, and media companies. It also provides sports entertainment, gaming, and sports solutions, as well as live streaming solution for online, mobile, and retail sports betting. In addition, its software solutions address the entire sports betting value chain from traffic generation and advertising technology to the collection, processing, and extrapolation of data and odds, as well as to visualization solutions, risk management, and platform services. Sportradar Group AG was founded in 2001 and is headquartered in Sankt Gallen, Switzerland.View Sportradar Group ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Amazon Earnings: 2 Reasons to Love It, 1 Reason to Be CautiousMeta Takes A Bow With Q1 Earnings - Watch For Tariff Impact in Q2Palantir Earnings: 1 Bullish Signal and 1 Area of ConcernVisa Q2 Earnings Top Forecasts, Adds $30B Buyback PlanMicrosoft Crushes Earnings, What’s Next for MSFT Stock?Qualcomm's Earnings: 2 Reasons to Buy, 1 to Stay AwayAMD Stock Signals Strong Buy Ahead of Earnings Upcoming Earnings Palantir Technologies (5/5/2025)Vertex Pharmaceuticals (5/5/2025)Realty Income (5/5/2025)Williams Companies (5/5/2025)CRH (5/5/2025)Advanced Micro Devices (5/6/2025)American Electric Power (5/6/2025)Constellation Energy (5/6/2025)Marriott International (5/6/2025)Energy Transfer (5/6/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 11 speakers on the call. Operator00:00:00Good day and thank you for standing by. Welcome to the SpotRadar Fourth Quarter twenty twenty four Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please note that today's conference is being recorded. Operator00:00:25I will now hand the conference over to your speaker host, Jim Palmbassi, Senior Vice President of Investor Relations and Corporate Finance. Please go ahead. Speaker 100:00:34Thank you, operator. Hello, everyone, and thank you for joining us for SportWriter's earnings call for the fourth quarter and full year 2024. Please note that the slides we will reference during this presentation can be accessed via the webcast on our website at investors.sportradar.com and will be posted on our website at the conclusion of this call. A replay of today's call will also be available on our website. After our prepared remarks, we will open the call to questions from analysts and investors. Speaker 100:01:04In the interest of time, please limit yourself to one question and one follow-up. Please note that some of the information you will hear during our discussion today will consist of forward looking statements, including without limitation those regarding revenue and future business outlook. These statements involve risks and uncertainties that may cause actual results or trends to differ materially from our forecast. For more information, please refer to the risk factors discussed in our annual report on Form 20 F and Form six ks filed with the SEC along with the associated earnings release. We assume no obligation to update any forward looking statements or information which speak as of their respective dates. Speaker 100:01:43Also during today's call, we will present IFRS and non IFRS financial measures and operating metrics. Additional disclosures regarding these measures and metrics, including a reconciliation of IFRS to non IFRS measures, are included in the earnings release, supplemental slides and our filings with the SEC, each of which is posted to our Investor Relations website. Joining me today are Karsten Kurl, our CEO and Craig Celenstein, our CFO. And now I'll turn the call over to Karsten. Speaker 200:02:13Good morning, everyone. We are pleased to be speaking with you today. This has been a tremendous year for us both financially and strategically. Our strong performance was fueled by the continued execution of our growth strategy and underpinned by our core competitive advantages. This includes the depth and breadth of our sports coverage, best in class product portfolio, unmatched global distribution network and cutting edge technology. Speaker 200:02:44As you may have already seen this morning, we announced that we are further expanding our leading global content portfolio as we entered into an agreement with Endeavor and WME IMG to acquire IMG Arena and its global sports betting rights portfolio. I'm incredibly excited about this acquisition, which enhances our footprint in some of the most metropolitan sports, including tennis, soccer and basketball and will deliver significant value to our clients, partners and shareholders. A deal once closed is expected to be immediately accretive to our business and margins. I will talk more about this deal and the benefits momentarily, but first I'd like to discuss some of the highlights from this past year. We delivered on our promises and ended 2024 with a great quarter across the board, capping another consecutive year of above the market growth and ahead of our already raised expectations. Speaker 200:03:51Importantly, this strong performance flows through to our bottom line as we reach an inflection point in our operating leverage earlier than anticipated. Going forward, we are well set for multi year margin expansion and significant cash flow generation. Turning to our strategic highlights. There were a number of key achievements this past year that reinforced our competitive position and strong growth profile. Let me start by discussing how our deep and robust content portfolio is powering growth. Speaker 200:04:29We have the broadest coverage of the most petapoint sports in our industry, which provide us with market leading data ports as we have now secured all our major sports content on the long term, including basketball, soccer, hockey, tennis and baseball. This gives us significant visibility on a key part of our cost structure as well as a long runway to innovate, expand and grow our new product offering and drive our content ROI. I'm very pleased with our recently announced expanded partnership with Major League Baseball. The deal runs through 02/1932 and is expected to be immediately accretive to our business and margin. We are now the exclusive provider of MLB official data for betting, media as well as audio visual content across our client network around the world. Speaker 200:05:27The global baseball market is continuing to expand at the same time as we see increasing sports betting legalization in markets such as Mexico, Korea, Taiwan and anticipated future markets like Japan and India. Given our global reach, we believe we are the only sports technology company that can help the league engage fans and betters all over the world and help unlock new revenue opportunities. As part of the agreement, MLB has also taken an equity stake in Spodrada further solidifying our long term partnership. The disciplined approach we have taken with our existing Spodrides and the strong returns we are generating is what gave us confidence and the opportunity to acquire the portfolio of rights from ING Arena. Maximizing the value of high demand content for our clients and lead partners is what we do best and this portfolio comprised of relationships with over 70 RISE holders and covering approximately 39,000 official data events and 30,000 streaming events across 14 global sports on six continents provides a variety of growth avenues. Speaker 200:06:48Importantly, approximately 70% of these rights are spread across the top three sports for global betting turnover. Basketball, soccer and tennis greatly enhancing our status as the number one content provider in core betting sports, while also expanding our content offerings in emerging live betting sports. Prominent global properties include Wimbledon U. S. Open Roland Garros in three of the four Grand Slams as well as the Major League Soccer, German Dave Pickup, EuroLeague Basketball and PGA Tour among other Tier one properties. Speaker 200:07:30Content is the fuel of our engine. We are uniquely positioned to integrate and monetize these rights seamlessly based on our highly scalable technology platform and broad client network. This portfolio will accelerate Sporadar's robust revenue, adjusted EBITDA and free cash flow growth and will be margin accretive upon close. From a transaction structure standpoint, we are not making any payments to Endeavor. Instead, Endeavor will be providing financial consideration of $225,000,000 including cash compensation of $125,000,000 to SportRater and up to $100,000,000 to certain SportRIGHT holders, which will reduce our future obligations. Speaker 200:08:24There will be regulatory review in certain international territories and we anticipate that the deal will close in fourth quarter of this year. We expect to replicate with these rights the success we had with our new MBA and ATP deal in 2024. Both the MBA and ATP have significantly enhanced distribution of our core data, and audiovisual or AV products. This content helped us to provide most comprehensive video offerings for sportsbooks and their customers powering 450,000 live AV streams annually, as well as live betting uptake and foresight and other visualization solutions that capture the play on the field. Access to deeper, richer data from our content partnerships combined with our advanced proprietary technology is fueling our next generation of hyper personalized products, changing the way that fans interact with sports. Speaker 200:09:32We are automating our data collection for faster collection on a much greater scale. We have made great invoices and are now collecting live data on approximately 50% of our matches through automated means by harnessing computer vision technology. To put this into a context, we can now collect up to 100,000 data points in a single match, which is nearly 100 times the amount of data collecting through traditional collection methods. We demonstrated this in January at our Standard Eyes, the biggest batting and gaming trade show with live three on three basketball games played to highlight how our company's technology is used to power product at every stage of the sports betting value chain from automated data collection to data visualization and in play betting. We are already working on a number of additional ways to leverage this deeper data to further personalize the Spotsane experience with tailored content, boosting engagement and stimulate more betting opportunities. Speaker 200:10:45A case in point is Foresight, which harness the deeper data to enhance fan engagement and support the growth of in play betting. With the average time spent on Foresight stream clocking in at 24% longer as compared to a standard stream, it is delivering on that promise. More time spent watching the games means more opportunities for fans to dive deeper into the action, growing engagement with the sport and creating new betting opportunities. We have already rolled out Foresight across tennis, basketball and table tennis and later this year, we will roll it out to soccer. Additionally this year, we will launch an enhanced foresight offering that will create even more immersive and engaging fan experiences. Speaker 200:11:36We are also advancing the in play betting experience, introducing innovative micro markets, offering new betting opportunities on moments of the game industry hasn't seen before. We have recently launched micro markets for ATP tennis matches and NBA games creating an additional 1,500 new betting opportunities per tennis match and 1,200 new betting opportunities per basketball game. We are planning to launch a number of other sports including football, baseball and ice hockey this year to open up potential new revenue and value for our clients with AI driven products based on our exclusive content. Another highlight of 2024 was the performance of our managed trading services where we managed to trade risk of our small group customers. MPS is a key value proposition for our clients consistently delivering high turnover and margins. Speaker 200:12:39In 2024, MTS turnover reached EUR 35,000,000,000, which makes us a top bookmaker globally and we achieved a 10.7% margin for our clients, an improvement compared to 9.8% in 2023. This performance is a clear testament for our AI driven market leadership in technology. Our proven trading and risk management capabilities combined with the diversity of sports MTS offers enables us to achieve such strong results and mitigate the impact from any single sport. This performance underpins the increasing demand for this core product as most sportsbooks look to outsource their trading interest management capabilities to us. In fact, we have added a number of new sportsbooks clients in the past year and now provide MTS service to over two fifty books and encompasses over 500 sportsbooks brands. Speaker 200:13:43MTS has value outside the pure trading and risk management, providing us with unique insights into betters across hundreds of books. By managing the best of 80,000,000 unique betters last year alone, we are able to gain a deeper understanding of their preferences and dynamics. This insight informs our ads business and our ability to target a wider and engaged export for customers at a lower acquisition cost than other peers. We enhanced this business in 2024 with the launch of the new channel, including paid search and audio and the addition of affiliate marketing capabilities through XL Media, which was acquired at the end of twenty twenty four. Global expansion is a part of our growth story, particularly in emerging markets like Brazil, where we opened an office last year. Speaker 200:14:40With 80 license granted to date and as well as over 100 portfolks expected to enter the market, for sales competitive market presents opportunities to sell our best in class products and services to customers with diverse needs. We made a strong start into leveraging now our existing partnerships with global operators entering the market while expanding ties with local operators seeking additional capabilities. In fact, we have already seen 35 new sportsbook clients sign on for Ampea and we continue to see this growth. Additionally, we are also using this region to pilot our marketing services for iGaming. IGaming is a natural adjacency for to sports betting with the majority of our customers in Brazil offering both sportsbooks betting and iGaming. Speaker 200:15:37As sports bettors often also engaged in iGaming, we can leverage our marketing and cross selling capabilities to attract, engage and retain these hunters for our customers. The iGaming space is a natural expansion given our established customer base who have operating license for both sports betting and iGaming. We have already proven out this capability in iGaming in some European countries and Brazil now looks like the right market to scale this initiative with a three sixty degree solution. It starts with helping Spokbooks acquire customers through our ad business, then providing them data ops and platform services enhance their performance. We can further engage and retain those customers by converting them to iGaming customers through AI driven campaign management. Speaker 200:16:35This covers all aspects of acquisition, stimulation, retention and operation for modern sportsbook and our gaming operator. Wrapping up, in this past year, we have executed strongly both operationally and financially against our growth strategy. Our strong content portfolio, which will be further enhanced with our announcement this morning, our global footprint and our investment in development of the next generation product are providing us with the opportunity to generate continued robust growth ahead. With increased cost visibility from our long term deals and our financial discipline, we are at an inflection point for significant value creation. As we look at our twenty twenty five roles, we expect to continue to deliver robust growth. Speaker 200:17:30We are leveraging our investments in technology and AI to automate, commercialize and increase accessibility to support data for a broader ecosystem and we expect to continue to deliver margin expansion. I couldn't be more excited about our future and look forward to speaking to you more about this at our upcoming Investor Day on April 1. Now I will turn it over to Craig. Speaker 300:17:59Thanks, Karsten, and thank you everyone for joining us this morning. As Karsten highlighted, 2024 was a year of strong execution as we generated continued operating and financial momentum by leveraging our best in class content and robust product portfolio across our broad global customer base. The significant value we are delivering to our league, media and sportsbook partners is translating into record financial results and we have clearly reached an inflection point with strong top line growth translating into margin expansion and cash flow generation. I will focus the majority of my comments on our fourth quarter performance, but it is important to recognize the meaningful shareholder value that was created over the course of the past year. Total company revenue for the full year of $1,100,000,000 dollars increased $229,000,000 or 26% compared with 2023, driven in large part by higher spending from our clients, including significant incremental contributions related to our new ATP and NBA deals. Speaker 300:19:02Our growth was broad based with strength across our product portfolio, including betting and gaming content, managed trading services and our ads business. We also generated strong gains both in The U. S. And globally with The U. S. Speaker 300:19:16Up 58% year on year and the rest of world up 19%. Our U. S. Revenues have increased to 24% of our total revenue, up 500 basis points versus a year ago as we capitalize on the continued rapid domestic market growth and the growing demand for our innovative products and depth of content. Most importantly, the steps we have taken to align our cost base with the revenue opportunities is enabling us to deliver significant operating leverage with the 26% revenue growth this past year translating into 33% adjusted EBITDA growth. Speaker 300:19:50Adjusted EBITDA of $222,000,000 for the year increased $56,000,000 compared with a year ago and the company increased full year adjusted EBITDA margins by over 100 basis points to 20% despite the initial year increases associated with the new long term ATP and NBA deals. Turning to the fourth quarter in more detail, record revenues of $3.00 $7,000,000 increased $54,000,000 or 22% compared with the fourth quarter a year ago, as we continue to have success growing our client relationships, increasing the uptake of our leading products and solutions as demonstrated by our customer net retention rate of 127%. Looking at the individual product groupings, growth was diversified with broad based increases across both bedding technology and solutions, as well as our sports content technology and services group. Betting technology and solutions revenue of $247,000,000 delivered 21% growth versus the fourth quarter a year ago, driven primarily by a 30% year on year increase in betting and gaming content, including 30 growth at our streaming and betting engagement products, most notably due to strong growth in audiovisual revenues. Odds in live data also continued to perform well, up 30% year over year, benefiting from the strong U. Speaker 300:21:09S. Market growth as well as from additional customer uptake of our products along with premium pricing for new content such as ATP. Additionally, managed trading services continued to grow strongly year over year due to higher trading margins and more betting activity from existing and new clients of our sportsbook partners. As expected and as we highlighted on our last call, overall managed betting services was down slightly as the success at MTS was offset by comparisons to last year's initial setup revenue related to hardware deliveries for the Taiwan Lottery deal. Moving to our other product group, sports content technology and services also delivered strong results this past quarter with revenues of $60,000,000 increasing $11,000,000 or 23% year on year led by marketing and media services growth of 22% due primarily to the continued growth of our ads business as we saw a variety of sportsbooks investing in marketing campaigns during the fourth quarter. Speaker 300:22:09Similar to the full year, we had broad based growth geographically during Q4 with The U. S. Business increasing 41% and the rest of the world increasing 16% as we continue to outpace the sustained market growth across the globe. The revenue growth across our product portfolio translated to significant adjusted EBITDA growth with adjusted EBITDA of $61,000,000 in Q4, increasing $21,000,000 or 53% year on year. As expected, now that we've begun to lap the first year of our new major sports rights, we are starting to deliver significant total company operating leverage with adjusted EBITDA margins in the fourth quarter expanding over 400 basis points to 20% as we continue to be diligent across our cost infrastructure. Speaker 300:22:55Looking at the individual cost buckets, I will be speaking to adjusted expenses to provide a breakdown of the expenses that impact adjusted EBITDA. We have detailed in the earnings release and the financial section of the earnings presentation, the bridge from IFRS amounts. This past quarter, sports rights expenses increased to 37% to $103,000,000 in the quarter due primarily to the new ATP rights, which are driving significant revenue growth as we upsell solutions to existing clients as well as add new clients given the premium nature of this content. We continue to be disciplined and strategic in building up our premium rights portfolio. And with the recent extension of our long term partnership with Major League Baseball, we have significant visibility moving forward, having secured all of our largest rights under long term deals. Speaker 300:23:44Given this visibility, we have full confidence in our ability to drive operating leverage across our sports portfolio and see significant opportunity to drive incremental value as we develop and scale our premium products and solutions for our global customer base. Turning to people, adjusted personnel expenses were $73,000,000 in the quarter, up 9% year on year, driven primarily by increased headcount to support growth opportunities and by higher incentive compensation given the financial performance this year. Importantly, adjusted personnel expenses were down approximately two seventy basis points as a percentage of our revenue and we will continue to closely manage headcount to ensure we are focusing our talent and resources on the most profitable growth opportunities, while unlocking additional operating leverage. In addition to the leverage we delivered across our personnel costs, adjusted purchase services expense of $44,000,000 decreased 4% versus last year as increased cloud and IT costs to primarily support growth initiatives as well as higher traffic costs related to the growth of our ads business was more than offset by the initial setup costs associated with the Taiwan Lottery in the fourth quarter a year ago. Overall adjusted purchase services declined approximately three seventy basis points as a percentage of revenue. Speaker 300:25:05And moving forward, we will continue to further leverage our existing infrastructure while investing in our products portfolio. Lastly, adjusted other operating expenses of $27,000,000 increased 5% versus last year and declined approximately 140 basis points as a percentage of revenue. Overall, there is inherent scale and operating leverage in our business and we expect to meaningfully expand total company margins beginning in 2025 as we drive further revenue opportunities, closely manage our cost infrastructure and start to fully realize the benefits of sports rights being amortized on a straight line basis over the life of each contract. We generated a net loss of $1,000,000 in the fourth quarter versus the net profit of $23,000,000 reported in the fourth quarter a year ago as the $21,000,000 improvement in adjusted EBITDA and $21,000,000 tax benefit due primarily to the recognition of deferred tax assets were more than offset primarily by the $65,000,000 change in unrealized currency losses, mostly associated with the U. S. Speaker 300:26:09Dollar denominated sports rights. Turning to the balance sheet, we continue to be in a strong liquidity position, closing the quarter with $348,000,000 in cash and cash equivalents and no debt outstanding. As anticipated, our cash balance declined $20,000,000 from the end of the third quarter, primarily due to the acquisition of the affiliate marketing assets of XL Media, as well as from the timing of sports rights payments. For the full year, we generated free cash flow of $118,000,000 versus $50,000,000 in 2023, led by strong cash from operations, primarily as we leverage our expanded sports content portfolio and implement additional cost and working capital management measures. We continue to make meaningful strides with regards to increasing free cash flow conversion and delivered 53% conversion in 2024 versus 30% in 2023. Speaker 300:27:02Our balance sheet will be further enhanced given the structure of the IFG transaction announced this morning. In conjunction with this transaction, aside from the additional free cash flow we anticipate generating, we will receive approximately $125,000,000 over a two year period following the close. Given the strength of our balance sheet, our expectations around significant additional free cash flow generation moving forward and the cash we will receive in the transaction, we are well positioned to be able to invest in expanding the long term growth potential of the company, whether organically or through M and A, while also returning capital to shareholders. To date, we repurchased approximately $20,000,000 worth of our stock at an average price of $11.44 under our $200,000,000 share repurchase program, including $6,000,000 in the fourth quarter. Given the ING transaction, we have been restricted from buying back shares, but we continue to believe that our shares are undervalued given the strong growth we are delivering and the expectations for significant further margin expansion and cash flow conversion in the future. Speaker 300:28:05We anticipate significantly accelerating repurchases under our buyback program when our trading window opens. Turning to our expectations for the year ahead, the strong operating and financial momentum we generated throughout 2024 is poised to continue in 2025. Given the uncertainty around timing of closing, our 2025 guidance does not include any impact from the acquisition of IMG Arena and we will incorporate the upsides of the acquisition into our guidance once the deal closes. However, it is important to note that the acquisition of the content portfolio from IMG will not only accelerate our revenue, adjusted EBITDA and free cash flow generation, but it is attractive from an ROI perspective and will be accretive to our overall adjusted EBITDA margins. For the full year 2025, we anticipate total company revenue of at least $1,273,000,000 dollars representing year over year growth of at least 15% as we outperform the sustained global market expansion and further capitalize on our high demand content portfolio and innovative product suite. Speaker 300:29:12At the same time, we anticipate adjusted EBITDA of $281,000,000 or 26% year over year growth with at least 200 basis points of adjusted EBITDA margin expansion in 2025 despite the increased cost associated with our expanded Major League Baseball partnership. As we look at the cadence for 2025, we anticipate margins will be in the high teens in the first half of the year and will accelerate in the second half of the year with the highest margins in the third quarter given the phasing of sports rights costs within the year. Additionally, in the year ahead, we will continue to focus on converting more of every dollar to cash flow and anticipate growing our free cash flow conversion rate from the 53% conversion we delivered in 2024. Overall, the strategic and operational steps we have taken over the last several years generated another year of strong results in 2024 and has us poised to build additional shareholder value in the years ahead as we deliver sustained long term revenue growth, while converting more and more of each dollar into EBITDA and free cash flow. With the market continuing to expand, with Sportradar's proven track record of delivering additional value to our partners across the global sports ecosystem through product innovation and development and with a cost structure that has high visibility moving forward, we are very much at an inflection point of revolution and look forward to discussing the opportunities that lie ahead in further detail at our Investor Day next month. Speaker 300:30:40Thank you for your time this morning. And now Karsten and I will be happy to answer any questions you may have. Operator00:31:12Our first question coming from the line of Brian Sigdahl with Craig Hallum Capital Group. Your line is now open. Speaker 400:31:21Hey, Carson, Craig. First, kudos on the structure of the IMG deal. Curious, if anything, what you're taking from a balance sheet or liability standpoint besides the rights contracts at fair market value? And then on the cost perspective, people, just what's all included in here, what's not? And then on the revenue synergy potential, we've seen you guys cross sell, up sell, broader distribution, etcetera, on ATP and the rights you've organically won in the past. Speaker 400:31:53But curious if you expect kind of a similar, quicker uplift from these rights? Speaker 200:32:01Hi, Ryan. Karsten here. I'll take the first part and please send the liability and the people to Craig. So first, if we for a moment think into the future, if we are sitting here in one year time, I think we will realize how great of a deal that was. It's a milestone for Spodrada in Speaker 300:32:22the Speaker 200:32:22development. I'm very proud of the team that we managed this. It is a very good day for Spodrada. Having said this, let's put the deal into two aspects. One is the strategic one. Speaker 200:32:35The second one is the commercial one. Looking to the strategic, we scale and we are the premium provider for the B2B sports. So that makes us even stronger. Looking to the coverage, we expand the coverage, and we do this in our key sports. That's tennis, that's basketball, that's soccer. Speaker 200:32:54That's very complementary. Looking to our ability, and we touched on this, we saw what has happened with ATP, which we took from IMG beginning of twenty twenty four. We managed this property significantly better, and that was given the scale, which we have. We have 800 bookmakers. We have 900 media companies connected to this machine. Speaker 200:33:17And this is a well oiled machine. We are global from a footprint, and we simply have the leverage on this. Looking now to the commercials, the deal is accretive to the revenues, obviously. It is accretive to the margin and it's accretive to cash flow. So the ROI, which we deliver with this deal is sensational. Speaker 200:33:37And that is the reason why we are so excited about it. It took quite a while to get it done. There are a lot of details, as you might imagine. And it's now when I got the first messages from our clients, they are going on sports, which I also find very exciting. So we get some messages around snooker. Speaker 200:33:55We get something around golf and me as a golfer, of course, I have a passion for those things. But there is a good opportunity to even increase our client network here. And now I hand over to Greg for the people and for the liabilities. Speaker 300:34:12Sure. Thanks, Ronen, for the question. So we are acquiring the assets and liabilities of the IMG Arena business, and we will provide more color on what that entails once we get closer to closing. Obviously, that will change a little bit between now and closing. That said, the vast majority of what we're acquiring is the sports rights themselves. Speaker 300:34:31So for the most part, that is the asset that we're acquiring as part of this transaction. When it comes to other aspects of the IMG arena business, one of the reasons that we're so confident that we'll be able to achieve some nice accretive margins for our own business is that there's some significant operational synergies between two businesses. Obviously from a technology perspective, from a scouting perspective, from an overhead perspective. So we do see an opportunity to as we move forward to reduce the cost structures of the combined entity as we head into the next phase of our evolution here. So there will be some nice opportunities to expand more moving forward. Speaker 400:35:07Excellent. For my follow-up question, looking at Slide 11 on Brazil, I know it's early, but want to focus on MTS. So you guys have signed up almost half of the sportsbooks on MTS. Curious what's driving that outside success and demand for MTS specifically in that market? And then within that mix, is it mostly full kind of everything MTS capabilities or some of these just taking specific sports for the MTS side? Speaker 400:35:35Thanks. Speaker 200:35:37So one thing is, of course, the team, Ryan. We have a super, super strong team in Brazil. We created the office in Sao Paulo. So they are doing an excellent job. Yesterday, we also signed an integrity partnership with the SAKO Confederation there. Speaker 200:35:53So you see the pieces are going together the same way like we did it in The U. S. So it's a very good team performance. 35 MTS bookmakers is a strong testament for this. And it's simply we are providing the economy of scale for them. Speaker 200:36:07They are doing the marketing, they are doing the branding, and we keep the house clean and we do a good operation. But the very exciting piece in Brazil is iGaming. As you know, the bookmakers are making roundabout four times more money with an iGaming client than the sports betting. But sports betting is the acquisition channel. And this market is our test market for the three sixty degree scheme, which I said in the script. Speaker 200:36:32We start with the acquisition. We use our ads product. It's problematic advertising. We convert this better than anybody else. So then we offer the data, we offer the ops, the platform or the MTS, whatever the client wants to have, and with Wipes, where we do the channel optimization and the campaign management based on AI, we can switch that over into the churn management and get it into iGaming, campaigning and all those things then. Speaker 200:36:59And in between, we have the acquisition tools where we do the entertainment, the scores, the detailed match analysis, and that makes a three sixty degree system here. I'm very proud that we could now already sign up with two companies for iGaming. It's very early innings and what I'm telling you now is happening in the last two weeks, but we see a strong pickup. So Brazil is a market where it's very vibrant, lots of opportunities. And so we have a very strong team on the ground. Speaker 200:37:33That is the reason why the results are so good. Operator00:37:38Thank you. And our next question coming from the line of Michael Graham with Canaccord. Your line is now open. Speaker 500:37:49Thank you. And again, congrats on a really great quarter and momentum. I wanted to ask about MTS a little bit deeper and there are really two questions. One is just can you comment on how big of an impact the sale of the Taiwan Lottery hardware sales last year had on organic growth, like should we talk about the organic growth in MTS? And then just going deeper into your 100 basis points of margin expansion, you mentioned AI, but maybe a little more detail on what drove that expansion and how are you thinking about what that does in the coming year as you kind of get that product more fully ramped up? Speaker 200:38:37Joe, do you want to go on? Speaker 300:38:39Yes, I'll handle the first part of the question. Carson, you can handle the second. So, Michael, thanks for the question. When you think about the impact of the Taiwan Lottery a year ago, the overall MBS segment was down slightly in the fourth quarter. If the Taiwan Lottery one time set of fees had not been received a year ago, the growth in the MBS business in the fourth quarter would have been in the high 20% range, so similar to what it was for the rest of the year with regards to the MBS segment. Speaker 300:39:07As far as MTS specifically, the MTS segment in the fourth quarter, we don't talk about it specifically, but it obviously makes up the majority of that piece of our business. So you can assume that the growth in the fourth quarter was somewhere very much in the mid to high 20% range. Speaker 200:39:24Maybe I have. So Taiwan was 2,000 shops, which brought the terminals for accepting sports betting and also the lottery tickets. So that is a hardware investment. It was a one off. And as Greg rightly said, without this, we are solidly in the 20s and above. Speaker 200:39:45Looking to the 100 basis points margin expansion, that's fairly simple. So we are sitting on two big pools from a cost perspective. We are sitting on salaries and employee costs. We managed to run a very tight ship here, and we will continue to do this with a growth in roundabout 10% to 11% going forward. Looking now into the rights, we expanded massively in 2024 with ATP and of course also with the MBA. Speaker 200:40:15So that was an uplift of 65% and we could mitigate this. If you look now to our rights going forward for the next six years, this is pretty much fixed. Now with the latest with Major League Baseball, we have the security and stability in our rights portfolio. We have no cliff and it's predictable costs, which we see here. So there is not any kind of uncertainty on the sport rights. Speaker 200:40:40Having those two elements, that gives us a lot of comfort to show margin leverage in the years going forward. Speaker 600:40:48Okay. Thanks very much, Carsten and Craig. Speaker 300:40:52Thank you. Operator00:40:55Thank you. And our next question coming from the line of Gurney MacTiernan with Needham and Company. Your line is now open. Speaker 500:41:05Great. Thank you for taking the question. I want to start on IMG. And sorry if I missed it, but just how big are they currently from a revenue and EBITDA perspective? And do any of the comments on margin and free cash flow accretion contemplate synergies? Speaker 200:41:23Craig, do you want to go on this? Speaker 300:41:25Yes, sure. Bernie, thanks for the question. So obviously, I'm not going to talk to what they are today for themselves, but I can talk to what we think it would have been for us if we had to own this asset for the full year. When you think about our revenue guidance of about 15% for the current year, if we had IMG as part of our overall portfolio starting January 1, our estimation is that our revenue growth would be somewhere in the high 20% range. So meaningful opportunity for us as a company as we ultimately move forward and leverage this across our portfolio as Karsten indicated like we did with ATP already. Speaker 300:42:00So, you see unique opportunities for us to leverage these assets across a variety of our relationships globally. In terms of the margin expansion opportunity, we do believe that these assets, when put into our, what I would call ecosystem and into our engine, will have higher margins than our existing margins moving forward. So absolutely the margin accretive for us because we'll be able to leverage this content across the wide global distribution base. Speaker 200:42:29Maybe I have for one piece of this content, the samples. So tenants is something where we developed four sites. We developed a light bus. Now we are getting three of the four grand slams additionally on top of what we have. Putting this into the existing products gives us a natural leverage there. Speaker 200:42:49And if you look now from a tenant standpoint, having the top tier tenants and having ATP in between there and UTR at the low level, that makes the package, which has done high demand from our clients. So that gives us additional leverage. Speaker 500:43:06Understood. Thank you. And just as a follow-up, the Slide number eight that you guys put together on sports rights was really helpful. Is there any way to think about the average term remaining for the major contracts or IMG? Speaker 200:43:22Yes. So the major contracts from IMG are roughly roundabout three years. Speaker 700:43:28Got it. Okay. Thanks, Larsen. Thanks, Rick. Appreciate Speaker 100:43:31it. Thank you. Operator00:43:34Thank you. Our next question coming from the line of Robin Farley from UBS. Your line is now open. Speaker 800:43:44Great. Thank you. Going back to the ING deal, can you give us a sense of how much of the delta in EBITDA performance, clearly it's losing money for IMG last year. So the delta between that and you believing that it will be higher margins for you if you owned it for full year 2025. How much of that delta is the $225,000,000 and is that all spread over two years? Speaker 800:44:13I know at least part of that was spread over two years. How much of the delta comes from that sort of that guaranteed piece of it versus how much of the delta has to come from sport radar putting it in your system and your scale and all of that, just to get a sense of how much of the delta is sort of locked up versus based on your performance? Speaker 200:44:39Maybe I give it a first try and then Greg weighs in. So we can't speak for IMG and Endeavor, but what we did here is a very careful analyze of the portfolio. We looked to each and every ride. We looked to the revenues, what they generate, and we looked to our up selling abilities and the cross selling abilities. We looked into, can we use this content if we put it in our engine to get more revenue channels than they have? Speaker 200:45:07And then we're coming to a picture and saying, well, we believe with this content, we can generate those revenues. And that was first criteria. Second was, is this accretive to our EBITDA? That is a very, very clear point of decision and saying, if we are doing something which is not accretive, we are not interested. And that's the reason why we did the deals. Speaker 200:45:30So it's accretive to our EBITDA and it's accretive to cash. We needed some money to repair some deals, only a few, which are probably not in the current market from a pricing perspective. And that's what you see in the segments where you said round about $100,000,000 has been used in prepayments to the leaks to get those deals more in line with market conditions that we can monetize on them. Speaker 300:45:58Let me add a couple of things just in terms of how it works with regards to our financial statements. Karsten already talked to how we're going to monetize these assets moving forward. But there's really two pieces to the cash components that were paid. So the one is that there are some prepayments that are made to the league that will actually help us from a free cash flow perspective moving forward just to be free cash flow margin accretive for us because we have less of an obligation from a cash perspective to these rights. The other piece of the cash, the right to our balance sheet will allow us to invest that cash in future growth initiatives. Speaker 300:46:31The last part of this that's important to know is that when we take these assets into our portfolio, we write them down to the fair market value that they have for us as a company. And because we do that, it also allows us to have a lower cost base on these assets than the initial rights were themselves, I would imagine for IMG. So that's how you should figure the three different components of the compensation. Speaker 800:46:56Okay. And based on your commentary about where your revenue growth would have been, it sounds like the revenue you're saying if you had had it for the full year in 2025 would have been maybe $150,000,000 in revenue. Is that should we think about that as being what you're acquiring or is that where you would have gotten that if you upsell and cross sell everything that you're getting from ING? Is that $150,000,000 kind of including what you think you would have added from upselling and cross selling? Thanks. Speaker 300:47:34Yes. Let me be clear, Robin. That is what we would have had from this asset, we believe in 2025, we had that asset as of January 1. That said, we can't predict exactly what the revenue will be upon close because it depends on how long that close ultimately takes. Some of these rates will obviously have shorter timeframes, they may roll off and it would be up to us whether we want to renew them or not. Speaker 300:47:56But when the time comes to close the deal, we'll have a much better feel for what the next twelve months will look like. We'll give you an update at that point. Speaker 800:48:04Okay. So that does not include you guys upselling and cross selling, you're saying? Speaker 200:48:10It does nothing. Okay. Speaker 800:48:13Thank you. Operator00:48:17Thank you. And our next question coming from the line of David Katz with Jefferies. Feline is now open. Speaker 900:48:27Hi, morning, everyone. Just personally going back to the topic of the day on the acquisition, Can you just color us in a little bit on how you thought about valuation on it? And maybe educate us a bit on kind of what how you thought about market value today and what the implication is for other rights that you sort of already own and already acquired? Thank you. Speaker 200:49:01David, we are doing this in the same way like for every right. So we are looking to the ROI from a ride acquisition. We are looking to what we believe we can make with this ride in the market, our scale and the products which we have. Nothing different than with this acquisition. We looked to all the 70 rights in the 14 sports, and we did the same exercise. Speaker 200:49:25What we have to do here on top is we saw how IMG can monetize those rights, And we had to do the exercise what is in there for us with cross selling and out selling. And partly, we have some products, which IMG doesn't have. So we have MTS, we have the life of the set where PP. So that was coming then on top of this. For most of the rights, which are in this portfolio, we have been a participant in the center. Speaker 200:49:53So we are interested in those rights because they are in our sweet spot. And the sweet spot specifically is soccer, is basketball and is tennis. There are now some more opportunities, which are not in our calculation when we're getting a stronger footprint in this sport and when we can scale with more innovative solutions. So there is more to come. But it is a normal ROI, which we do sport by sport. Speaker 200:50:21Same way like we evaluate order wise. And there is a target margin, which we want to achieve, and that has been done in the same way. Like we do it normally for rights. And as Craig said on the beginning, it's an asset acquisition. So we are interested in the sport rights. Speaker 200:50:37It is that is the key focus here. Speaker 900:50:43Understood. And in another direction is my follow-up. Craig, I think you may have mentioned and it was a bit choppy on my line about share repurchases and acceleration. I just want to make sure I heard right. And if you could add some color there, that would help too. Speaker 900:51:00Thanks. Speaker 300:51:02Sure. When you think about the cash position the company is in today, the free cash flow that we're generating as a company, which is obviously accelerating just as part of our core business, as part of our base business. And then you layer on top of that the, what I would call the additional capital that we're going to have as part of the I and G transaction. And then you factor in that there is only so much money we can invest back into our business. And there's no obvious large M and A opportunity out there outside of what we're doing right now, then you see an opportunity to use that capital in a variety of ways. Speaker 300:51:37And one of those ways will be to return capital to shareholders at a more accelerated rate. We obviously have not been able to do that because we preview this information that this acquisition was ongoing. Now that that is behind us, once Flobindale opens up again, we will look to return capital to shareholders. But I will say this, it is always one of three options that we have. We are always looking at ways to invest in our existing core assets. Speaker 300:52:03Given the high margins we have in our existing business, we want to continue to expand the margins in our existing business and we're not going to jeopardize that by putting too much money back into the business. Same goes for any M and A opportunity. It has to be margin accretive for us to do it. So if we can't find either of those two things, then we will go ahead and return capital to shareholders. And because of the cash we have, we do have the ability to do both. Operator00:52:28Thank you. And our next question coming from the line of Michael Hickey with The Benchmark Company. Your line is now open. Speaker 600:52:40Hey, Karsten, Craig, Jim. Good morning, guys. Good afternoon. Congrats on 2024 and your deal, very exciting. I guess, just the first question, Karsten, you've obviously built out a very strong foundation to your business here. Speaker 600:52:55And when you think about rights that you have, the longevity of those rights and the costs associated, and of course, you said your business is inflecting and we saw that in Q4 and 2024 really. So just wondering today, Karsten, your longer term vision, how you see Sportradar evolving over the next three to five years and what are the biggest opportunities for expansion? Speaker 200:53:23So thanks for congratulating on 2024. So it's the first time that we speak about these numbers today in the call, and I think we should celebrate it. So it's a 26% growth. Top line revenue was 33 percent on the EBITDA. We showed margin expansion and leverage. Speaker 200:53:42And it was not expected from the market. I think it was a good year for us 2024. Now looking forward in the digital business globally, to predict five years is really difficult. Ten years ago, when one of our private equity partners asked me for three years, I said I can predict a one. I get with a two in a range that it is in the tolerance with the three, it's getting very difficult. Speaker 200:54:08So looking now forward, we have four business areas. Sports betting, I think we showed that we understand what we are doing. We showed that we understand our two main cost blocks and how to manage this. Going forward, the rights are much more transparent on this. And that applies now also for IMG because we told you we are looking to the ROI in the same way like for our normal rights. Speaker 200:54:34We can expand now into iGaming. We do the test in Brazil. We did a test in some smaller European markets. That would be a sum for us from SEK1.4 billion. So that's a growth opportunity in that sector. Speaker 200:54:47Going forward, we want to expand here. Looking now into the media business, that's an area where I was at the All Stars two weeks ago, and I saw all the big digesters on stage, and I had the pleasure to talk to some of them. It's about hyper personalization. It's about products for generational assault. We are sitting on this. Speaker 200:55:08We are sitting on this data course. We are sitting on the technology and we understand AI. So we are excited about growth opportunities in that media space. Weak partnerships, we are very happy about what we have and we are leveraging this and expanding here. So that is something which gives us the fuel for getting into those verticals. Speaker 200:55:33And then we have only about the last thing left, which there is a business with government and regulators. It's very, very staged. We are there with integrity services. But looking for the funds in gaming, looking into what we can do in this space, we have high hopes here to expand on the timeframe of two, three, four years in that area. I hope that answers a bit the outlook into the future where we see us and well, the 2024. Speaker 600:56:08Yes, nice. Thanks, Carson. And just a follow-up, the I mean, I think you said you're a technology company and we agree. So I guess under the topic of product innovation, how you're leveraging AI and machine learning to enhance your products? And if there's any upcoming innovations within your product suite that you're particularly excited about? Speaker 200:56:35Let me split it in three different categories. One is efficiency. As a sample, we more or less automatize our first level support. We have more than 400,000 support mails asking the first or hitting the first level. We automatize with AI around about 80% of this. Speaker 200:56:54So we are facilitating our data pools and we get a level of quality in there that we could automatize it. So that's a clear efficiency improvement. It happens in many, many places of the company. Legal is one of the departments benefiting from it. So that's something which is the first one. Speaker 200:57:12Second one is how can we optimize the client value? Alphabox is a clear sample for this. And today, we told you that we achieved an uplift of 1%, so 100 basis points on the margin. Most of this is coming from leveraging AI, leveraging our data pools and optimizing this. And then the third one, we call that true innovation, not some buzzwords. Speaker 200:57:39We want to really do a true innovation and that's at the end leveraging the data pool from the fans, leveraging the sport data up to level five data and leveraging the liquidity information which we get. That's something which we will show you on the Investor Day a bit more closely and give you some samples for ROCUS. But that's how we see Speaker 600:58:02ADI. Thanks, Kirsten. Good luck, guys. Speaker 200:58:04Thank you. Thank Operator00:58:08you. And our next question coming from the line of Jordan Bender with Citizens Bank. Your line is now open. Speaker 1000:58:18Good morning, everyone. I want to circle back on the movement of cash related to the deal real quick. So $100,000,000 to the rights holders will be used to restructure those deals. But do the broad assumptions that you provided if you did own the business this year, does that assume that you'll need to exit any of the 70 rights portfolio that IMG owns to get to those levels? Speaker 200:58:43Craig, do you want to go on this? Speaker 300:58:45Yes. No, it does not. We're assuming we're getting all of the rights. It just requires some early payments to some of those rights of some of the future obligations. Speaker 1000:58:55Perfect. And then just on the follow-up on the guidance, fourth quarter growth really strong 22%. For 2025, the implied growth around 15%. How should we reconcile basically the step down in growth between the exit rate in 4Q and then 2025? Speaker 300:59:14Sure, Jordan. So obviously the 2024 year included the step ups that we had associated with both the NBEA and ATP. So they were a big part of the step up in that first year. And then we're going to build off that again starting in 2025. And when you think about the 2025 growth, you're really coming at it from the standpoint of you see market growth somewhere globally around 10%, a little bit less than that rest of the world and certainly larger than that in The U. Speaker 300:59:46S. And then we're going to grow faster than that like we have for several, several years here by increasing the share of wallet that we get from each of our customers as we add additional value to them by giving them additional products or providing additional content. We do see some additional opportunity as we get additional in play versus where it was historically as in play becomes a bigger piece of the pie that certainly helps us from a revenue perspective. And then as Karsten mentioned, we're starting to invest in some of these adjacent markets and that will also provide us an opportunity here moving forward. So those are really the drivers for us for 2025. Speaker 1001:00:22Appreciate it. Thank you very much. Speaker 101:00:24Operator, we have time for one more question. Operator01:00:28Sure. Our last questioner coming from the line of Samuelson with JPMorgan. Your line is now open. Speaker 701:00:36Hi, guys. Congrats on the great quarter guidance and IMG announcement. I guess just following up on that last question for 2025 guidance. How should we kind of think about your sports rights from a leverage or percent of revenue perspective prior to the IMG acquisition completion? I think you've got it to like 200 basis points of margin expansion. Speaker 701:00:57Is it fair to assume fifty-fifty split between sports rights and non sports rights costs in terms of leverage next year? Speaker 301:01:06Yes. Thank you, Sam. I think you actually just answered your own question. That's exactly what we expect for 2025. We expect to get margin expansion across not only our sports rights, but across our continuing infrastructure as a company. Speaker 301:01:18And right now, if I was going to have to lay out what that would be from a breakdown perspective, I'd have about fiftyfifty for the year. Speaker 701:01:26Okay. That's great. And then on the IMG announcement, could you kind of go over the process for regulatory approval? I would assume your peers were maybe looking at this deal, especially with the favorability in the terms. What is your initial sense on how maybe antitrust Speaker 301:01:42is thinking about the deal? Speaker 201:01:47Well, we expect the main antitrust is in The UK, from the Embassy NAS doing this. In The U. S, we have no antitrust issues. So we are under the threshold for The U. S. Speaker 201:02:01Rights and we don't need to file in The U. S. There are a couple of minor jurisdictions. We think we have a very solid argumentation and IMG said by itself in their last quarter that they will discontinue this business. So we think we have a very solid argumentation here that we can close and reach this closing in quarter four. Speaker 701:02:28Great. Thank you. Nice quarter. Speaker 101:02:31Thank you everyone for joining us for our call. I'll turn it back over to the operator. Operator01:02:38Ladies and gentlemen, this does conclude today's conference call. 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