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Sportradar (SRAD) Boosts Offerings With Expanded UEFA Tie-up
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Sportradar Group AG (SRAD - Free Report) recently announced a multi-year extension of its partnership with the Union of European Football Associations (UEFA). The extension of the exclusive betting data rights agreement solidifies SRAD’s position as a leading provider of sports data and underscores its commitment to innovation and enhanced offerings.
The agreement grants SRAD with non-exclusive rights to distribute data to non-betting media. Also, the initiative provides it access to certain advanced tracking to enrich its AI products and services. The improvement in technology solutions paves a path for more client acquisition and retainment, potentially boosting the top line.
The initiative facilitates the inclusion of more than 900 high-profile matches each season — a nearly 33% increase from the previous cycle — offering a more comprehensive portfolio. This includes the UEFA Champions League, UEFA Super Cup, UEFA Europa League, UEFA Conference League, UEFA Women’s Champions League, UEFA Women’s EURO 2025, the European Qualifiers to the 2026 FIFA World Cup, the European Qualifiers to UEFA EURO 2028, the UEFA Nations League, the 2025 & 2027 UEFA European Under-21 Championships and UEFA international friendly matches. The expanded coverage is likely to attract more betting and media partners, boosting SRAD's market presence and revenue streams.
The management highlighted that the agreement aligns with the company’s strategy of selectively investing in long-term rights across major international sports, fostering continuous innovation and improvement in service offerings.
Focus on Strategic Partnerships & Technology
Sportradar emphasizes strategic collaborations with sports league partners to drive growth. The company, positioned at the nexus of the sports, media and betting industries, offers federations a best-in-class range of solutions to assist them expand their operations. Some of the notable collaborations include ATP, NBA, NHL, MLB, NASCAR, UEFA, FIFA and Bundesliga.
During first-quarter 2024, the company’s revenues increased 28% year over year, buoyed by successful NBA and ATP contracting solutions and effective operational execution. The company’s strategic initiatives including enhanced AI capabilities and launching innovative products like Alpha Odds, have demonstrated significant profitability enhancements for its sportsbooks. The company emphasizes leveraging data insights and cutting-edge technology to bolster long-term growth and shareholder value.
Price Performance & Valuation
In the past three months, Sportradar’s shares have gained 10.9% compared with the industry’s rise of 0.4%.
Image Source: Zacks Investment Research
From a valuation perspective, Sportradar currently trades at a forward 12-month price-to-earnings ratio of 60.13X, significantly higher than the industry average of 22.54X. In the past 30 days, earnings estimates for 2024 have moved from 16 cents per share to 10 cents.
Our Take
Given the expanded partnership with UEFA and Sportradar’s strong market position, maintaining a ‘Hold’ stance on the stock appears prudent for investors for the time being. The agreement’s strategic benefits, including enhanced AI products, broader match coverage and access to non-betting media segments, position the company favorably. Also, SRAD’s focus on client revenue streams and content portfolio bode well for revenue growth.
Investors should hold off on new purchases to observe how these developments translate into financial results and market response. The approach allows investors to capture potential upside while monitoring Sportradar’s execution of its strategic initiatives in the evolving sports technology landscape. Lowered earnings expectations and a high forward P/E ratio suggest limited upside potential for SRAD's stock price.
Zacks Rank & Key Picks
Sportradar currently carries a Zacks Rank #3 (Hold).
The consensus estimate for AGS’s 2024 sales and earnings per share (EPS) suggests growth of 7.7% and 5,200%, respectively, from the year-ago levels.
Adtalem Global Education Inc. (ATGE - Free Report) currently carries a Zacks Rank #2 (Buy). ATGE has a trailing four-quarter earnings surprise of 18.8%, on average. The stock has surged 82.8% in the past year.
The Zacks Consensus Estimate for ATGE’s fiscal 2025 sales and EPS indicates an increase of 5.3% and 16.6%, respectively, from year-ago levels.
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The Zacks Consensus Estimate for RCL’s 2024 sales and EPS calls for growth of 16.9% and 64%, respectively, from the year-ago levels.
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Sportradar (SRAD) Boosts Offerings With Expanded UEFA Tie-up
Sportradar Group AG (SRAD - Free Report) recently announced a multi-year extension of its partnership with the Union of European Football Associations (UEFA). The extension of the exclusive betting data rights agreement solidifies SRAD’s position as a leading provider of sports data and underscores its commitment to innovation and enhanced offerings.
The agreement grants SRAD with non-exclusive rights to distribute data to non-betting media. Also, the initiative provides it access to certain advanced tracking to enrich its AI products and services. The improvement in technology solutions paves a path for more client acquisition and retainment, potentially boosting the top line.
The initiative facilitates the inclusion of more than 900 high-profile matches each season — a nearly 33% increase from the previous cycle — offering a more comprehensive portfolio. This includes the UEFA Champions League, UEFA Super Cup, UEFA Europa League, UEFA Conference League, UEFA Women’s Champions League, UEFA Women’s EURO 2025, the European Qualifiers to the 2026 FIFA World Cup, the European Qualifiers to UEFA EURO 2028, the UEFA Nations League, the 2025 & 2027 UEFA European Under-21 Championships and UEFA international friendly matches. The expanded coverage is likely to attract more betting and media partners, boosting SRAD's market presence and revenue streams.
The management highlighted that the agreement aligns with the company’s strategy of selectively investing in long-term rights across major international sports, fostering continuous innovation and improvement in service offerings.
Focus on Strategic Partnerships & Technology
Sportradar emphasizes strategic collaborations with sports league partners to drive growth. The company, positioned at the nexus of the sports, media and betting industries, offers federations a best-in-class range of solutions to assist them expand their operations. Some of the notable collaborations include ATP, NBA, NHL, MLB, NASCAR, UEFA, FIFA and Bundesliga.
During first-quarter 2024, the company’s revenues increased 28% year over year, buoyed by successful NBA and ATP contracting solutions and effective operational execution. The company’s strategic initiatives including enhanced AI capabilities and launching innovative products like Alpha Odds, have demonstrated significant profitability enhancements for its sportsbooks. The company emphasizes leveraging data insights and cutting-edge technology to bolster long-term growth and shareholder value.
Price Performance & Valuation
In the past three months, Sportradar’s shares have gained 10.9% compared with the industry’s rise of 0.4%.
Image Source: Zacks Investment Research
From a valuation perspective, Sportradar currently trades at a forward 12-month price-to-earnings ratio of 60.13X, significantly higher than the industry average of 22.54X. In the past 30 days, earnings estimates for 2024 have moved from 16 cents per share to 10 cents.
Our Take
Given the expanded partnership with UEFA and Sportradar’s strong market position, maintaining a ‘Hold’ stance on the stock appears prudent for investors for the time being. The agreement’s strategic benefits, including enhanced AI products, broader match coverage and access to non-betting media segments, position the company favorably. Also, SRAD’s focus on client revenue streams and content portfolio bode well for revenue growth.
Investors should hold off on new purchases to observe how these developments translate into financial results and market response. The approach allows investors to capture potential upside while monitoring Sportradar’s execution of its strategic initiatives in the evolving sports technology landscape. Lowered earnings expectations and a high forward P/E ratio suggest limited upside potential for SRAD's stock price.
Zacks Rank & Key Picks
Sportradar currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are as follows:
PlayAGS, Inc. (AGS - Free Report) sports a Zacks Rank #1 (Strong Buy). AGS has a trailing four-quarter earnings surprise of 33.3%, on average. The stock has appreciated 81.3% in the past year. You can see the complete list of today’s Zacks Rank #1 stocks here.
The consensus estimate for AGS’s 2024 sales and earnings per share (EPS) suggests growth of 7.7% and 5,200%, respectively, from the year-ago levels.
Adtalem Global Education Inc. (ATGE - Free Report) currently carries a Zacks Rank #2 (Buy). ATGE has a trailing four-quarter earnings surprise of 18.8%, on average. The stock has surged 82.8% in the past year.
The Zacks Consensus Estimate for ATGE’s fiscal 2025 sales and EPS indicates an increase of 5.3% and 16.6%, respectively, from year-ago levels.
Royal Caribbean Cruises Ltd. (RCL - Free Report) currently carries a Zacks Rank #2. RCL has a trailing four-quarter earnings surprise of 18.3%, on average. The stock has rallied 64.4% in the past year.
The Zacks Consensus Estimate for RCL’s 2024 sales and EPS calls for growth of 16.9% and 64%, respectively, from the year-ago levels.