Sportradar Group AG

Ladies and gentlemen, thank you for joining us and welcome to Sport Radar Group's third quarter earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please raise your hand. If you have dialed in to today's call, please press star 9 to raise your hand and star 6 to unmute. I will now hand the conference over to Jim Bombasi, Senior Vice President, Investor Relations and Corporate Finance, Jim, please go ahead.

Thank you, operator. Hello, everyone, and thank you for joining us for Sport Radar's earnings call for the third quarter of 2025. 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'll open the call to questions from analysts and investors in the interest of time. Please limit yourself to 1 question and 1 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 different materially from our forecast. For more information, please refer to the risk factors discussed in our annual report on form 20F and form 6K filed today 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. Also, during today's call, we will present and financial measures and operating metrics. Additional disclosures regarding these measures and metrics, including a reconciliation of measures are included in the earnings release supplemental slides and our findings with the, each of which is posted to our investor relations website. We may also discuss certain forward-looking, non-IFRS financial measures that cannot be reconciled to the most directly comparable IFRS financial measure without unreasonable efforts. Joining me for today's call are Karsten Kurl, our CEO, and Craig Fellenstein, our CFO. And now I'll turn the call over to Karsten.

Good morning, everyone, and thank you for joining us today. I'm pleased to announce another quarter of strong execution and performance. Our results further underscore our scale and position as a mission critical partner, deeply embedded in the global sports ecosystem. We achieved record quarter three revenues of 292 million euros and strong flow through with 29% growth in adjusted EBITDA and a record adjusted EBITDA margin of 29%. So far this year we have generated 149 million of free cash flow, representing very strong conversion of 72%. In addition, we are raising our full year 25 guidance with the closing of our IMG Arena acquisition and providing our initial sorts for 26, underscoring our accelerating growth and value creation. Given the strong momentum we see going forward and the opportunity to create significant shareholder value, our board of directors authorized increasing our share repurchase program by $100 million, raising the total program to a size of $300 million. As we discussed at our investor day, We are uniquely positioned to capitalize on the rapid expansion of the global sports betting market. Given our scale and the depth and breadth of our content, we are driving higher take rates by growing our products and content, penetrating across our loyal client base as we continue to accelerate innovation and bring next generation products to the market. IMG Arena fits squarely into this growth strategy. First, we would like to welcome our new colleagues and partners from around the world. IMG Arena is a highly strategic acquisition which aligns with our core business and will fuel our next leg of growth. It further strengthens the competitive position as the scale leader at the intersection of sports, media, and betting, bringing a wealth of premium content and complements and enhances our already robust global portfolio and capabilities. As a reminder, this transaction is unique in that we are not making any payments to Endeavor, but instead are benefiting from financial consideration totaling approximately $225 million. This acquisition is expected to accelerate our growth while being creative for our adjusted EBITDA margins and free cash flow on conversion, which Greg will provide more details on shortly. This deal makes major milestones and creates significant additional opportunities for our company, enhancing our content distribution and further fueling product development. We will seamlessly integrate and monetize these rights across our highly scalable technology platform and client network. Encompassing strategic relationships with over 70 ride holders, approximately 70% of these rides are spread across the three most bet-upon sports, soccer, tennis, and basketball. This acquisition helps fueling our flywheel, adding more must-have betting content and data, which in turn powers more odds generation grows MTS trading liquidity and scales our regular streams. Our teams have been hard at work and now that we have closed on the deal, they have hit the ground running to manage a smooth integration and maximize revenue synergies in both the short and the long term. While some synergies will be realized quickly, others might take more time to fully realize. When it comes to global sports coverage, we are the clear leader, and this is further enhanced with IMG. With a portfolio of over 1 million matches annually, our major partnerships are locked in long term, providing us with a great visibility on our right costs. We just completed the first season of our extended and expanded partnership with Major League Baseball, and we saw strong performance, for the season with revenues exceeding original projections. We recently renewed and extended our deal with the Spanish Football Federation to sell the international media rights for the Spanish Super Cup until 2032. This agreement ensures we keep control of global broadcast sales for the tournament well into the next decade and gives us continually as the Spanish Football Federation exclusive international media rights partner. As we fine tune our leading rights portfolio, we continue to drive innovation across our business, creating more cross-selling and upselling opportunities with our clients and partners. In terms of product development, we are leading to shift towards more personalized and interactive experiences. We are delivering next-generation products that shape how fans view, bet, and connect with the player on the field. A great example of how we are doing this is through our deepening partnership with the NBA. Foresight streaming, first introduced last season, has been upgraded with new features including live shot probability enhanced motion graphics, and real-time player highlights. These updates deliver deeper storytelling and more contextual data-rich visualizations that boost engagement. One of our most exciting Reason AI breakthroughs is the development of a generative foundation model for basketball, a first of its kind in sport. The model is based on a large transformer architecture which we trained using billions of 3D body pose data points from thousands of NBA matches, allowing the model to understand player movement, decision making, and game flow through at an unprecedented level of details. This foundation model now powers predictive insights in real time, such as the expected points in the current possession, probability of the ball handler scoring in the next few seconds, or how each player actions affect the team's points per possession. These insights enhance our foresight streaming product, bringing richer, more interactive visualizations to live broadcasters. In addition, this technology opened new frontiers in coaching and performance analytics, quantifying the value of every pass block and shot. We see this foundation model powering our next generation of products, including coaching and scouting analytics, realistic simulating batting products, advanced visualizations for media and broadcast, and more advanced AI engines for sport video games. Now turning to our managed trading services. This product continues to be a differentiator for us and a key value proposition for our clients. Turnover for the quarter was up 25% year over year. And on trading 12 months basis, we managed approximately $48 billion on behalf of our clients, making us a top bookmaker globally. Our proven AI-driven trading and risk management capabilities combined with the diversity of sports on our MTS platform enabled us to achieve a margin of over 11% for our clients during the quarter. Given the scale of our trading volume and the number of betting tickets we are managing, this gives us a clear competitive advantage, enabling us to better manage risk than the major operators. in 2026 this client group will be a clear focus for upselling and cross-selling our mts capabilities we also continue to make significant progress in our marketing services business in particular our ads business delivered record volumes on our dsp this quarter reflecting growth demanding for our data-driven advertising solutions We saw robust performance across multiple channels, including our affiliate business, underscoring the strong ROI of our campaigns and the scalability of our marketing platform. As discussed last quarter, we are seeing a clear trend in today's fragmented media environment, with clients increasingly turning to sport radar to enhance fan engagement across mobile streaming and connected TV platforms. Betting is no longer viewed as a standalone experience, but instead as an integral part of how fans engage with sport. As fan behavior becomes more interactive and sports viewership continues to transition from linear to digital and mobile streaming, our media and technology clients are looking to leverage our capabilities to drive deeper engagement, and greater value across multiple channels. We have recently signed deals with a number of media platforms, including leading US regional sport networks and several top national broadcasters to integrate our data APIs, streaming products, and advanced analytics, delivering deeper storytelling and more contextual data-rich visualizations that boost engagement. As an example of this, in our new partnership with DAZN, the global sports entertainment platform offering live and on-demand coverage across a wide range of sports and leagues. This deal makes another milestone in scaling our media business globally, as we now provide DAZN the data and broadcast services across soccer, basketball, tennis, golf, American football, and baseball. Our technology will power on-screen graphics, deliver real-time stats, and elevate storytelling across the zone's platforms. We also have extended and expanded our partnerships with Google and Yahoo, providing live game day sports analytics for Google and extending our relationships as a primary provider for sports data for both Yahoo Sport and Yahoo Fantasy. And we are excited about a customized version of our foresight technology we developed together with MBC for Peacock called Performance View. Debuting last night for Peacock's streamed NBA games, Performance View gives fans a new way to experience the action. Performance View adds on-screen layer of data that illustrates deep analytics such as where a player is likely to score from next, helping fans understand what might happen before it occurs on the court. Now switching to a topic that has been on investor minds recently, other touched on prediction markets. We saw prediction markets emerge in sports betting nearly 25 years ago, but their share has been limited historically. given the low liquidity and the challenge pricing, more complex bets, including in-game wages. The emerging market situation in the US is a bit different, given the current uncertainty regarding state versus federal regulation. We have seen recent moves made by certain of our league partners and clients, and we are in active discussions with them. We will work closely with our partners and clients while ensuring that we comply with applicable laws and regulatory requirements. Should the market continue to develop in the way that aligns with those standards, we see the potential for prediction markets to complement our existing business and create incremental opportunity for sport radar. In closing, we are excited about the continued momentum we are seeing in our business and the significant strides we are making leveraging our technology and capabilities to lead the industry. Our global scale, which will be further enhanced with IMG Arena, provides us with an opportunity to continue to innovate and drive value creation. We are confident in our growth strategy and the significant opportunities that lie ahead, and we remain laser-focused on driving long-term value for our clients, partners, and shareholders. Thank you, and I will now turn over to Greg who will discuss our financial results in greater detail.