Sportradar (NASDAQ listed - SRAD) reported another good quarter and good guidance for 2025. Stock is up +8% today (+25% YTD). If you’re into sports betting you might be interested by this one.
Sportradar is a powerhouse in the sports data industry, providing crucial real time stats and insights that they provide to sports betting companies (>2/3 of revenue), media outlets, and even sports leagues themselves. They just made a big move by acquiring the IMG Arena rights, continuing to consolidate the space.
In my view it's a proper "pick-and-shovels" of the sports betting boom, whatever sport betting app you use, they are providing the data for most leagues (MLB, NBA, ATP, UEFA,...) . With global sports viewership on the rise, I see them enjoying several more years of double-digit growth. Plus, as they scale, their margins are set to expand. Their free cash flow generation doubled in 2024, and they’re expecting an even better conversion rate in 2025.
I will admit the valuation is getting a bit steep, but at 20x EV/EBITDA it's still reasonable for the growth potential.
I got in at $12, and while it’s not the cheapest stock out there anymore, I still believe it’s a unique and differentiated name worth considering.
Anyone else into this one?
*Disclaimer: not your advisor or your mom, do your own research before investing but still like my post, pretty please. No AI was mistreated to write the text, only the title.*