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Investing.com -- Sportradar Group AG (NASDAQ:SRAD) reported mixed results for the fiscal fourth quarter and announced the agreement to acquire IMG Arena and its global sports betting rights portfolio. The company's shares jumped more than 4% following the market open.
Sportradar's Q4 earnings per share (EPS) came in at breakeven, falling short of the EPS of $0.04 that analysts had expected.
Revenue for the quarter rose 22% year-over-year (YoY) to $307.07 million, better than the consensus estimate of $292.53 million.
Adjusted EBITDA for the period jumped 53% YoY to €60.6 million, also surpassing the estimated €56.3 million.
"We are pleased with our strong execution in 2024, achieving record revenue, operating margins and free cash flow generation,” said Carsten Koerl, CEO of Sportradar.
“Importantly, as we grow our topline, we are at an inflection point for multi-year margin expansion and increasing cash flow, positioning us to deliver meaningful shareholder value for years to come."
Looking ahead, Sportradar’s guidance for the full fiscal 2025 fell short of expectations. The company projects revenue of $1.273 billion, below the consensus estimate of $1.37 billion.
It expects an adjusted EBITDA margin expansion of at least 200 basis points and free cash flow conversion to exceed the 2024 level of 53%.
Alongside the latest results, the company also announced it has agreed to acquire IMG Arena and its global sports betting rights portfolio from Endeavor Group Holdings. IMG Arena is a sports data and technology company specializing in official sports data, live streaming, and digital content services.
Sportradar said the deal is expected to be immediately accretive to its adjusted EBITDA margins.
Also, the company will not be required to pay any financial consideration for the acquisition. Instead, the transaction includes $225 million in financial consideration, consisting of $125 million paid to Sportradar and up to $100 million in cash prepayments previously made by Endeavor to certain sports rightsholders.
The acquisition is currently expected to close in the fourth quarter of 2025.
