Sportradar Group AG Class A Ordinary Shares 2026 Q2 Earnings Call

Please go ahead. Thank you, operator.

Hello, everyone, and thank you for joining us for Sportradar's earnings call for the second quarter of 2026. Please note that the slides we will reference during the 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 up the call to questions from analysts and investors. In 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 forecasts.

For more information, please refer to the risk factors discussed in our annual report on Form 20-F and Form 6-K 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 the respective dates. Also 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 in our filings with the SEC, 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 today are Carsten Koerl, our CEO, and Craig Felenstein, our CFO. Now I'll turn the call over to Carsten.

Good morning, everyone, and thank you for joining us. Today, I will discuss our second quarter results and operations, including our continued success monetizing IMG ARENA content, as well as our product innovation across key sports. I will also discuss the progress we are making against our key strategic priorities as we capitalize on prediction markets and continue to roll out of iGaming. Sportradar is a mission-critical provider positioned at the intersection of sports betting and media industries. We are executing on a number of strategic initiatives that we are expanding our addressable market and will ensure our long-term success. This will enable us to drive durable and profitable growth along with substantial cash flow. Now turning to our second quarter results. Today, company revenues increased 19% year-over-year as we benefit from strong performance in betting and gaming content, including continued strong progress monetizing IMG ARENA rights.

We delivered an adjusted EBITDA margin of 20% and generated significant free cash flow. We also accelerated our return of capital to shareholders through our EUR 250 million enhanced open market share repurchase program. During the second quarter, we repurchased approximately $140 million worth of shares. Since inception, we repurchased EUR 422 million or 26 million shares through last week under the $1 billion share repurchase program as we take advantage of the volatility in the market as well as the value we've seen in our shares. In terms of the underlying market dynamics, we are continuing to see moderation in the U.S. market growth given no significant state openings and the growth in prediction markets, as well as some impacts in certain rest-of-the-world territories due to increased tax regulation.

While we continue to have confidence in our long-term ability to drive growth as we execute on our strategic initiatives, we are updating our full-year guidance to reflect some of these trends, which Craig will discuss in more detail. Turning to our operating highlights. We continue to make great progress integrating our IMG ARENA rights portfolio, including capitalizing on revenue synergies, expanding key rights, and ramping up our next-gen products. Demand across the global client base continued to be strong, and we remain on track to exceed our previously communicated revenue synergy target of 25%. We also continue to expand our premium product offering, launching player and Micro Markets, as well as courtside streaming for Roland-Garros and the upcoming U.S. Open. In addition, we expand the rollout of our premium golf service for the PGA, including Live Match Tracker, live streaming, and advanced in-play betting markets, which will enable operators to offer rich in-play golf experiences.

We also brought our new Live Match Tracker visualization to additional sport leagues, including the MLS and the UFC. During the quarter, we secured a multi-year extension to provide exclusive data and audiovisual betting rights for Wimbledon. This renewal strengthens and allows for further innovation across our premium tennis portfolio, which spans three of the four Grand Slams. In addition, we recently completed NBA and NHL season, further demonstrated our ability to maximize the value of our premium sport rights. Both partnerships deliver strong full-season results, reflecting continued customer adoption of our betting products and solutions across our customer base.

This continued strong progress underscores our ability to monetize sport rights across our large global client base, and broad product suite to deliver significant accretive revenue growth. Switching to Managed Trading Services. We continue to scale the business with strong Q2 turnover to benefit from major U.S. sports playoffs as well as the World Cup group stages. We managed approximately EUR 56 billion of turnover on behalf of our clients on a trailing 12-month base, which is up 26% compared to the prior period. Moving on to our marketing services. Affiliate marketing delivered its strongest months on record in June. We saw strong demand from North America sports books clients, as well as from our clients, including prediction market exchanges. We have been actively working with operators such as Kalshi, Polymarket, and Novig, among others.

In terms of our growth pillars, we continue to expand our product pipeline and upsell and cross-sell our content and product portfolio. At the same time, we are investing in capitalizing on exciting adjacent opportunities. One of the significant opportunities is in prediction markets. With our premium content, global scale, and unmatched product portfolio and capabilities, prediction markets is a natural adjacency. It expands the U.S. TAM by opening up new states, attracting new players, and increasing engagement with sports. Similar to our position in online sports betting, we build power key players in the prediction market ecosystem, including exchanges, market makers, and brokers. To this end, in June, we announced a multi-year global agreement as an official sports data and solution provider for Kalshi.

Under this agreement, Sportradar will deliver a broad portfolio of premium sports and content and services across major sports, including MLB, ATP, the NHL, MLS, and UFC, amongst others. We will provide Kalshi with our real-time DataOps to help them to ensure timely settlements, fan engagement solutions designed to drive deeper engagement, customer acquisition service to help them to acquire high-value sport fans, and our industry-leading integrity services. As we also recently entered into a multi-year agreement with Polymarket in coordination with TDI for the ATP tour. As part of the deal, we are providing Polymarket in the U.S. with streaming of ATP matches on an exclusive basis, along with a non-exclusive basis, our real-time data and odds for settlement, fan engagement solutions, customer acquisition services, and integrity services. Notably, we have the ability to enter into agreements with Kalshi and Polymarket key partners, including brokers and market makers.

Overall, we are excited to partner in what is an emerging, fast-growing segment of the sports market and believe this demonstrates Sportradar's unique value proposition within our industry. Looking ahead, we continue to have active conversations across the prediction markets ecosystem and anticipate entering into additional commercial deals in the coming months. Now turning to Playradar, our newly established iGaming business. This is a natural extension of our core business. The vast majority of our customers operate across both sports betting and iGaming. While these businesses have traditionally been managed separately, operators are increasingly focused on driving greater crossover between the two. That's because a player who engages in both sports betting and iGaming can generate up to five times the lifetime value of a sports betting-only player. We are creating differentiated entertainment experiences that seamlessly connect sports betting and iGaming.

One sample is our 24/7 live experience, where players can watch live sport events in a multiplayer setting while simultaneously engaging with complementary casino games or making real-time predictions on a live match. We are also gamifying historical sports content, starting with ATP, which will allow consumers to participate in a fast-paced gaming experience built around historic points from some of the world's greatest tennis matches. We have secured iGaming regulatory certification across multiple jurisdictions in South America, Europe, and Canada, and we expect to expand into additional major European markets and several U.S. states throughout the remainder of the year. Importantly, we are doing all of this organically and efficiently using existing resources. More broadly, we continue to focus on driving increased operating leverage across our business. Last quarter, we announced steps to further streamline our operation and drive cost efficiencies, which will result in significant annualized savings.

A key enabler of this effort is the increasing usage of AI across the business. We are leveraging AI to automate workflows, enhance coding and data collection, and accelerate product innovation. We will continue to look for ways to deliver cost savings and further enhance our margins while maintaining our commitment to innovate across the product portfolio. In closing, we believe the progress we are making on our strategic initiatives, as well as our premium content and broad product suite, will enable us to continue to deliver durable revenue growth. We are confident in our ability to capitalize on the expanding addressable market for our products and solutions, including the prediction markets and in-play gaming. This growth, combined with expanding operating leverage and strong cash flow generation, positions us to deliver long-term shareholder value in the months and years ahead. Thank you. I will now hand over the call to Greg, who will discuss our financial results in greater detail.