Sportradar lays out 2027 ambitions with €1.7bn revenue target
Supplier giant’s CEO says prediction markets are a welcome addition to potential client pipeline, while AI cited as a key needle-mover for the coming years
Sportradar is expecting 2027 revenue to hit at least €1.7bn, representing a 15% CAGR, with the New York-listed supplier laying out its future ambitions at its Investor Day yesterday, 1 April.
The business’ long-term financial targets also include 2027 adjusted EBITDA of at least €455m, a 27% CAGR.
Adjusted EBITDA margin expansion of 700 basis points as also been earmarked by the Switzerland-headquartered group, with free cash flow to sit at €275m.
Upon the release of the group’s full-year 2024 earnings, revenue landed at €1.1bn (£918.7m) and adjusted EBITDA came to €222m.
For 2025, Sportradar has forecast revenue of at least €1.3bn and adjusted EBITDA to reach €281m at a minimum.
The new targets for 2027 were unveiled as part of a near-four-hour Investor Day in New York, in which the company’s top team, including CEO Carsten Koerl and CFO Craig Felenstein took to the stage to lay out their vision.
Sportradar customers DraftKings and Kaizen Gaming were represented by CEOs Jason Robins and George Daskalakis, respectively, to espouse on the benefits of the supplier’s toolkit.
AI was championed as a core growth driver to reach these targets, with Sportradar’s chief AI officer Behshad Behzadi stepping up to the stage to deliver his thoughts.
The former Google vice-president said the supplier’s existing datasets represented a “gold mine” for the foundations of its AI capabilities moving forwards.
Behzadi added the company was working on generative AI to help bettors populate betslips in real time, as well as models to deliver marketing materials in local languages.
In terms of other growth opportunities, Koerl was asked for his opinion on the growing prediction markets sector, with Kalshi, Robinhood and Crypto.com all having risen to the fore in Q1.
Critics have claimed the trio are effectively offering sports betting to those aged 18 in all 50 US states without adhering to state-by-state regulations.
In fact, Nevada, Ohio and New Jersey have all issued cease-and-desist orders to the three companies for those deemed breaches.
Koerl said: “Every new operator is an opportunity for us, so we welcome this. I saw this with Betfair for example. It had a natural ceiling because the complexity is not so easy to understand for the mass market.
“I think innovation is always welcome. The average sport fan might see it as a little bit more complex. There is for sure a debate around this, [but] we welcome it. We welcome it because there is more client potential for us, but it is a different style to fixed-odds betting.”
Despite the Investor Day presentation and lofty ambitions, Sportradar’s shares peaked at $23.50 (£18.17) yesterday before closing at $21.62.
However, the group’s stock is up more than 90% over the past 12 months.
Koerl concluded: “As the market leader in sports technology, Sportradar is uniquely positioned at the centre of the sports ecosystem.
“With our leading scale, unparalleled global distribution network and history of innovation we are confident in our ability to continue our strong momentum and deliver tremendous value for our clients, partners and shareholders.”