NEW YORK – Sportradar (NASDAQ: SRAD), a global sports technology company, has entered into a multiyear agreement with Major League Baseball (MLB) to augment the league's scouting of amateur baseball talent through its Synergy Coaching and Scouting solution. The partnership aims to transform the evaluation of player potential using Sportradar's advanced technological platform.
The deal grants MLB and its 30 clubs access to an extensive range of player analysis and insights, with event coverage expanding from 3,300 to over 20,000 games. This marks a significant increase in the scope of games analyzed, encompassing college, international, and leading amateur leagues, including the MLB Draft League and high school events.
Sportradar's Synergy solution is designed to meet MLB's player evaluation needs by processing millions of data points from video into detailed metrics, insights, and visualizations. The technology, powered by artificial intelligence, provides comprehensive analysis of players, plays, and game situations. It is expected to assist MLB and club scouts in streamlining the talent evaluation process, guiding draft decisions, and fostering the development of future MLB players.
Eduard Blonk, Chief Commercial Officer of Sportradar, emphasized the company's commitment to delivering innovative solutions to MLB, highlighting the expanded relationship and the provision of deep data and insights for identifying new talent.
John D'Angelo, MLB's Sr. Vice President of Amateur and Medical (TASE:PMCN) Operations, expressed enthusiasm for the expanded partnership with Sportradar. He noted that the Synergy platform has become a crucial resource for clubs in both domestic and international scouting processes.
This announcement follows MLB's recent initiatives to improve the pace of play and increase fan engagement, which have contributed to the league's significant attendance growth and expanded global reach.
The information for this article is based on a press release statement from Sportradar.
In other recent news, Sportradar Group AG has been making significant strides. Citi recently updated its stance on Sportradar, increasing its price target from $18.00 to $20.00 and maintaining a Buy rating. This change reflects a shift in valuation methodology, transitioning from revenue multiple to free cash flow (FCF) multiple, due to Sportradar's anticipated FCF growth. Citi's new valuation is based on projections into 2025, which align with a longer-term outlook for the company.
Sportradar recently reported robust third-quarter results, with a 27% year-over-year increase in revenues, reaching €255 million, and a 30% rise in adjusted EBITDA to €66 million. This growth was primarily driven by its Betting Technology & Solutions and Managed Trading Services. Additionally, the company raised its full-year revenue and adjusted EBITDA guidance, indicating strong operational momentum and strategic initiatives geared towards future growth.
Furthermore, Sportradar confirmed expectations for higher EBITDA margins in 2025, targeting 25% to 30%. The company is also optimistic about growth in the Brazilian market and ongoing sports partnerships. The pending acquisition of XLMedia is expected to enhance revenue and cost synergies, further strengthening Sportradar's position in the sports betting and entertainment market. These are among the recent developments that investors should note.
InvestingPro Insights
Sportradar's recent partnership with MLB aligns well with its strong financial performance and market position. According to InvestingPro data, the company has shown impressive revenue growth of 26.55% over the last twelve months as of Q3 2024, with quarterly revenue growth at 26.93%. This growth trajectory supports the company's expansion into new markets and services, such as the enhanced MLB scouting solution.
InvestingPro Tips highlight that analysts anticipate sales growth in the current year, which is consistent with Sportradar's strategic moves to broaden its service offerings. The company's strong financial health is further underscored by the fact that it holds more cash than debt on its balance sheet, providing flexibility for investments in technology and partnerships like the one with MLB.
The market has responded positively to Sportradar's performance and potential, with the stock showing a strong return of 76.36% over the last year and trading near its 52-week high. This market sentiment aligns with the company's innovative approach and expanding relationships with major sports leagues.
For investors interested in a deeper dive into Sportradar's financials and market position, InvestingPro offers 18 additional tips, providing a comprehensive view of the company's investment potential.
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