Q2 2025 Sportradar Group AG Earnings Call
Operator: Good day, and thank you for standing by. Welcome to the Sportradar second quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star one-one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one-one again. Please be advised that today's conference is being recorded. I will now hand the conference over to our first speaker today, James Bombassei, Senior Vice President and Head of Investor Relations. Please go ahead.
Good day and thank you for standing by. Welcome to the sport radar second quarter 2025 earnings conference call.
At this time, all participants are listening only mode.
After the speaker's presentation, there will be a question and answer session.
To ask a question during the session, you'll need to press star 1 on your telephone. You will then hear an automated message advising that your hand is raised.
To withdraw your question, please press star 1 again.
Please be advised that today's conference is being recorded.
I would like to hand the conference over to your first Speaker today. Jim babasi SVP and head of message relations. Please go ahead.
James Bombassei: Thank you, operator. Hello, everyone, and thank you for joining us for Sportradar's earnings call for the second 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 will open 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 forecast.
Thank you, operator. Hello everyone. And thank you for joining us for sport. Radars earnings call for the second quarter of 2025.
Please know that the slides will reference during this presentation can be accessed via the webcast on our website at investors radar.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 let me 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.
James Bombassei: 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 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, and our filings with the SEC, each of which is posted to our Investor Relations website. Joining me today are Carsten Koerl, our CEO, and Craig Felenstein, our CFO. Now I will turn the call over to Carsten.
These statements involve risk and uncertainties that may cause actual results or Trends to differ materially from our forecast.
For more information, please refer to the risk factors discussed in our annual report on form 20f or 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 we provide 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-s measures are included in the earnings release, supplemental slides, and our filings with the SEC, Each of which is posted to our investor relations website.
Joining me today. Our Carson curl our CEO and Craig fencing, our CFO.
Carsten Koerl: Good morning, everyone, and thank you for joining us today. We are excited to report another quarter of strong execution and performance. We delivered all-time record quarterly revenues, up 14% year over year, once again demonstrating the strength and durability of our business. Our performance underscores our position as a mission-critical partner deeply embedded in the global sports ecosystem. Despite ongoing volatility in the broader economy, our model continues to deliver consistent growth on both top and bottom lines. Revenue growth is broad-based across both products and regions. At the same time, our focus on efficiencies and driving increased operating leverage translates to expanding margins and robust cash flow generation. Looking ahead, we see continued strong operating momentum for the remainder of the year. Given this confidence, we are raising our full-year outlook.
Now, I'll turn the call over to Karsten.
Good morning, everyone, and thank you for joining us today, we are excited to report another quarter of strong execution and performance. We delivered all-time record, quarterly revenues up 14% year-over-year. Once again, demonstrating the strengths and durability of our business.
Our performance underscores our position as a mission-critical partner, deeply embedded in the global sports ecosystem.
Despite ongoing volatility the broader economy, our model continues to deliver consistent growth on both top and bottom lines.
Revenue growth with water was broad-based across both products and reached
At the same time our focus on efficiencies and driving increased operating leverage translate to expanding margins and robust cash flow generation.
Carsten Koerl: The durability of our results is driven by our long-term growth strategy anchored on the core pillars we outlined at our investor day. First, we are uniquely positioned to capitalize on the rapid expansion of the global sports betting market, given our scale, including the depth and breadth of our sports content, premium products, and deep client relationships. Second, we are driving higher take rates by growing our product and content penetration across our client base as we continue to accelerate innovation and bring next-generation products to the market that enhance our clients' business. Third, we are looking at new revenue streams by expanding into adjacent markets where we can leverage our existing capabilities and expertise. Finally, we continue to invest in innovation and remove growth barriers, applying our cutting-edge technology and AI capabilities to help us further scale our growth of our business efficiently.
Looking ahead, we see continued strong operating momentum for the remainder of the year. And given this confidence, we are raising our full year outlook.
The durability of our resources. Driven by our long-term growth strategy, anchored on the core pillars. We outlined at our investor base.
First.
We are uniquely positioned to capitalize on the rapid expansion of the global sport, betting Market, given our scale, including the steps and breadth of our Sports content premium products, and deep client relationships.
Second.
We are driving higher. Take rates by growing our product and content penetration across our client base, as we continue to accelerate Innovation and bring Next Generation products to the market, and enhance our client's business.
Third.
We are looking new revenue streams by expanding into adjacent markets where we can leverage our existing capabilities and expertise.
Finally, we continue to invest in Innovation and remove growth barriers, applying our Cutting Edge technology, and AI capabilities to help us further scale, our growth of our business efficiently.
Carsten Koerl: Turning to market growth, we continue to benefit from the underlying expansion of the global sports betting markets, both in the U.S. and internationally. This quarter, we saw growth of 30% in the U.S. and 9% in the rest of the world, reflecting strong market fundamentals in all regions. Since the legislation of the U.S. sports betting in 2018, the market has grown from approximately $300 million in GGR to nearly $14 billion last year. This is providing a strong tailwind and reinforces the significant opportunity ahead. Global market growth has also benefited from the number of sport matches available to bet on. Our growth is also being driven by deepening relationships with our clients as we move them up our content and product value chain. Today, 40% of our clients take four or more Sportradar products.
Turning from market growth, we continue to benefit from the underlying expansion of the global sports, betting markets, goes in the US and internationally.
This quarter, we saw growth of 30% in the US and 9% in the rest of the world, reflecting strong Market fundamentals in all regions.
Since the legislation after us sports betting in 2018, the market has grown from a proximately 300 million dollars in ggr to nearly 14 billion last year.
This is providing a strong tailwind and reinforces the significant opportunity ahead.
Global market growth has also benefited from the number of sports matches available to bet on.
Our growth is also being driven by deepening relationships with our clients. As we move them up, our content and product value chain.
Carsten Koerl: This gives us a significant opportunity to further embed ourselves in their operation and increase our take rate. Our content portfolio, with over 1 million matches annually across more than 85 sports, gives us the scale and flexibility to help clients optimize performance and unlock incremental value. Our clients are increasingly adopting higher value, highly immersive, engaging products, which are helping to foster more in-play betting. In our core betting business, our Managed Trading Services, or MTS, continues to see strong momentum with turnover growth of 23% year to date. This growth in turnover has been driven by increased adaptation of MTS by our clients, as well as growth in the sports we manage on the platform. In 2024, we signed over 50 new sportsbooks on MTS, and going forward, we have a robust pipeline of additional sportsbooks that will join the platform.
More sport rate of products.
This gives us significant opportunity to further embed ourselves in their operations and increase our takeaway.
Our content portfolio, with over 1 million matches annually across, more than 85 Sports.
Gives us the scale and flexibility to help clients optimize performance and unlock incremental values.
Our clients are increasingly adopting, higher value, highly immersive engaging products which are helping to Foster more inclusive in our core betting business.
Our managed training service, or MPS, continues to see strong momentum with turnover growth of 23% year to date.
This growth in turnover, has been driven by increased adaptation of MPS by our clients, as well as growth in the sports. We manage on the platform.
Carsten Koerl: In terms of our sports coverage on MTS, since 2018, we have added 70 sports, growing from approximately 355,000 annual events to nearly 900,000 events in 2024, a 150% increase. Our 4Sight streaming product is also gaining traction, especially in fast-paced sports like tennis and table tennis. A recent case study with Lottomedica's Goldback brand demonstrated a 30% uplift in turnover for 4Sight-covered events. In 2025, we have increased tennis coverage for 4Sight, adding the ATP 500 and ATP 250 events to our existing coverage of ATP Masters, Finals, and Next Gen events. In total, we offer 4Sight for up to 1,750 ATP matches this year. Since April, we have provided 4Sight coverage across our full portfolio of UTR pro tennis tournament matches. By the end of 2025, we will have offered 4Sight across at least 14,000 UTR matches. Micro Markets are another exciting opportunity for bettors and for Sportradar.
In 2024, we signed over 15 new sports books on MPS. We're going forward with a robust pipeline of additional Sports books that will join the platform.
In terms of our Sports coverage on NPS since 2018, we've added 70 Sports growing from approximately 355,000 annually. Rent to nearly 900,000 events in 2024
150% increase.
Our forca streaming product is also gaining traction, especially in fast day, sports like tennis and table tennis.
A recent case, study was a lot automatic as goes back brand. Demonstrated for 30% uplift in turnover for 4 sides, covered events.
In 2025, we have increased tennis coverage for 4 side. Adding the ATP, 500 and ADP, 250 events to our existing coverage of ATP, Masters finals, and next scheduled events,
In total, we offer postside to up to 1,750 ADP matches this year.
and since April, we have provided 4 side coverage across our full portfolio of utr pro tennis tour matches
By end of 2025, we will have offered 4 side across at least.
14,000 utr matches.
Carsten Koerl: We expanded our Micro Market offering from the NBA and ATP to now Major League Baseball and the WNBA, where adaptation by bettors has been rapid. During the NBA playoffs, we launched eight additional Micro Markets compared to the regular 2024-2025 season, resulting in a significant increase in Micro Market betting tickets and turnover again during the playoffs on our MTS platform. We are also continuing to evolve commercial models to closely align with our client needs, which is further enhancing our sport and product integration. In today's competitive market, operators need to be increasingly agile in order to grow their business.
Micro markets are another exciting opportunities for better and for sport radar.
We expanded our micro Market offering from the MBA and ATP to now Major League Baseball and the WNBA where adaptation by battles has been rapid. During the NBA Playoffs. We launched 8 additional micro markets compared to the regular 2425 season resulting in a significant increase in micro markets, batting tickets and turnover again, during the playoffs on our NPS platform,
We also continuing to involve commercial models to closely align with our science needs which is further enhancing our Sport and product penetration.
Carsten Koerl: We are addressing this challenge by providing them with the flexibility to dynamically adjust their sports and product mix through the life of the contract, helping to maximize their business and our revenues. I am also excited to highlight the strengthened partnership with the German Bundesliga Soccer League, where we are rolling out a new wave of in-play products and enhanced viewing experience solutions to entertain the league's more than 1 billion global fans. Bundesliga is now benefiting from our cutting-edge innovations with the addition of live player markets, which is expected to unlock 214 new betting opportunities per match. Products like 4Sight streaming and our live match tracker will significantly enhance the live betting experience. This enhancement strengthens our soccer offering and reinforces our position as a leading supplier of soccer betting content for our clients.
In today's competitive markets, operators need to be increasingly agile in order to grow their business. We are addressing this challenge by providing them with the flexibility to dynamically, adjust their Sports and product mix through the life of the contract helping to maximize their business and our revenues.
I'm also excited to highlight the strengthened partnership, with the German Bundesliga Baloch. Where we are, rolling out a new wave of employee products, and enhanced viewing experience solution to entertain the leaks more than 1 billion Global fans.
On this Leah is now benefiting from our Cutting Edge Innovations with the addition of light player markets, which is expected to unlock 2004, new batting opportunities per match. But products, like 4 side streaming in our lives match tracker with significantly, enhanced the life, betting experience.
Carsten Koerl: Our leading position and ability to service our clients is being further bolstered by our pending acquisition of IMG ARENA's portfolio of sport rights. We continue to anticipate this acquisition will close in the fourth quarter of this year, which will further boost our content offering in the most relevant sports, including soccer, tennis, and basketball. Our planning efforts are well underway and are focused on ensuring a seamless transition post-closure, with the cross-functional teams preparing detailed plans that will support long-term value creation for both our clients and departments. It is important to note that our leadership extends well beyond pool betting. In today's fragmented media environment, we are seeing a clear trend. Our clients increasingly turn to Sportradar to enhance fan engagement across mobile streaming and connected TV platforms. Betting is no longer a standalone experience. It is an integral part of how fans engage with sports.
This enhancement, strengthens our software offering and reinforces our position as leading supplier of soccer. Betting content for our tonight.
Our leading position in the ability to service our clients is further enhanced by our pending acquisition of IMGA, which supports your sport, right?
Our planning efforts are well on the way.
And are focused on ensuring a seamless, transition post closure. With the cross functional teams, preparing detailed plans, several support long-term value, creation proposed our clients and departments.
It's important to note that our leadership extends well beyond 4. B, in today's fragmented media environment, we are seeing a clear Trend, our clients increasingly turn to sport radar to enhance and engagement across mobile streaming.
And connected TV platforms.
Betting is no longer a standalone experience.
Carsten Koerl: As fan behavior becomes more interactive and real-time and sports viewership continues to transition from linear to digital and mobile streaming, our media and technology clients and our league partners are increasingly relying on Sportradar to drive deeper engagement and greater value across multiple channels. We are in active discussions with several leading technology and media platforms to integrate our data API, streaming products, and advanced analytics to drive greater engagement and viewership on their platforms. This interest is a clear demonstration of our built wants to sell to many business models. Importantly, we are also committed to removing growth barriers and scaling efficiently through innovation by leveraging our technology and AI. Our engineering teams have adopted advanced API tools that are transforming how we build and deploy products. Early data shows up to a 40% increase in developer productivity, empowering faster product lifecycles and accelerating time to market.
It is an integral part of how fans engage with sport.
As fan Behavior becomes more interactive in real time and sports viewership continues to transition from linear to digital and mobile streaming our media and Technology clients. And our league partners are increasingly relying on sport, radar to drive deeper engagement and greater value of across multiple channels.
We are in active discussions with several leading technology and media platforms to integrate our data API streaming products and advanced analytics to drive greater engagement and viewership on their platforms.
This interest is a clear demonstration of our build ones.
Sell to many business models.
Importantly, we are also committed to remove gross barriers and scaling efficiently through Innovation by leveraging our technology and AI
Our engineering teams have adopted Advanced API tools that are transforming how we build and deploy products.
Carsten Koerl: We also launched an AI provenance system for our customer support teams, delivering faster, more accurate resolutions and enhancing service quality. These capabilities are part of a broader long-term initiative to streamline our infrastructure, reduce development friction, and grow revenue efficiency, all while maintaining discipline on headcount. In closing, we remain confident in our long-term strategy and the significant opportunity that lies ahead. Our competitive advantage, as well as our laser focus on execution and efficiencies, is driving durable revenue growth and expanding margins and cash flow. We believe this position does well to deliver strong and sustainable value for our clients, our partners, and our shareholders in the months and years to come. Thank you. I will now turn it over to Greg, who will discuss our financial results in greater detail.
early data shows up to a 40% increase in developer productivity empowering faster products of our cycles and accelerating climate to Market
We also launched an AI program in the system or our customer support team delivering faster, more accurate resolutions and enhancing service quality.
These capabilities are part of a broader long-term initiative to streamline our infrastructure reduce development fractions and grow Revenue efficiency. All while maintaining discipline on headcount
in closing.
We remain confident in our long-term strategy, and the significant opportunities that lies ahead.
Our competitive Advantage as well as our laser focus on execution and efficiencies is driving durable, Revenue growth and expanding margins and cash flow.
We believe this positions us well to deliver strong and sustainable value for our clients.
Our partners and our shareholders, in the months and years to come.
Craig Felenstein: Thanks, Carsten, and thank you, everyone, for joining us this morning. Sportradar's unique position at the intersection of the sports, media, and betting industries continues to drive strong performance as we increasingly leverage our diverse, best-in-class product portfolio, leading technology solutions, and high-demand content across a broad and deep global customer footprint. Sportradar's strong second quarter results, including another quarter of record revenue, meaningful margin expansion, and significant free cash flow generation, further demonstrate the strength and durability of our position in the sports ecosystem, as well as the opportunity in front of us as the market continues to expand and we further innovate in collaboration with our league, media, and sportsbook partners.
Thank you. I will now turn it over to Greg who will discuss our financial results in Greater detail.
Thanks Carson, and thank you everyone, for joining us this morning.
Sport radar is unique position at the intersection of the sports media and betting Industries continues to drive. Strong performance. As we leverage our diverse best-in-class product portfolio, leading Technology Solutions and high demand content across a broad and deep Global customer footprint.
Sport. Radars strong, second quarter results, including another quarter of record Revenue, meaningful margin expansion and significant, free cash, flow generation.
Further demonstrates the strength and durability of our position in the sports ecosystem.
Craig Felenstein: This past quarter, Sportradar delivered revenues of $318 million, an increase of $39 million, or 14% as compared with the second quarter a year ago, driven by higher product uptake from existing clients, incremental spend from new clients, continued U.S. market growth, and strong trading results from our Managed Trading Services business. We continue to outperform market growth by deepening our client relationships through cross-selling and upselling our diverse portfolio of offerings, as demonstrated by our customer net retention rate of 117%. Looking at the individual product groupings, we delivered broad-based growth across both our betting technology and solutions products, as well as our sports content technology and services.
As well as the opportunity in front of us as the market continues to expand. And we further innovate in collaboration with our league media and sports book partners.
This past quarter sport, radar delivered, revenues of 318 million.
An increase of 39 million or 14% as compared with the second quarter, a year ago, driven by higher product. Uptake from existing clients incremental, spend from new clients, continued US market growth and strong trading results from our managed trading Services business
We continue to outperform market growth by deepening, our client relationships, through cross-selling and upselling. Our diverse portfolio of offerings as demonstrated by our customer. Net retention rate of 117%,
Craig Felenstein: Betting technology and solutions revenue of $259 million grew 12% versus the second quarter a year ago, primarily driven by a 10% increase in betting and gaming content, including 12% growth in our streaming and betting engagement products due to strong growth in audio-visual revenues from both existing and new customers. Odds and live data also continued to perform well, up 9% year over year, led by U.S. market expansion, additional uptake of our products, and new customer additions. Additionally, managed betting services continued to grow strongly, up 21% year on year, led by the sustained momentum at Managed Trading Services, driven by increased turnover from higher volumes across our existing customer base, trading activity from new clients, as well as higher overall trading margins.
Looking at the individual product groupings. We delivered broad-based growth across both our betting technology and solutions products, as well as our Sports content, technology and services.
Technology and solutions revenue of 259 million grew 12%, versus the second quarter a year ago, primarily driven by a 10% increase in betting and gaming content, including 12%, growth in our streaming and betting engagement products due to strong growth in audiovisual revenues from both existing and new customers.
Odds and live data. Also continued to perform well up 9% year-over-year. Led by us Market expansion, additional uptake of our products and new customers.
Additionally, manage betting Services. Continue to grow strongly up 21% year on year, led by the sustained, momentum at managed trading Services driven by increased turnover from higher volumes across our existing customer base. Trading activity from new clients, as well as higher overall trading margins.
Craig Felenstein: Turning to our other product group, sports content technology and services also delivered strong results this past quarter, with revenues of $59 million, increasing 22% year on year. Growth was broad-based, led by marketing and media services, which was up 16% year on year, primarily from increased uptake from technology and media companies and from contributions related to our expanded affiliate marketing capabilities. We also nearly doubled the contributions from integrity services due to the uptake of products and services from our league partners and delivered 24% growth versus a year ago from sports performance, due primarily to price increases. Geographically, our growth continues to be broad-based, with U.S. revenue up 30% and rest of the world revenue up 9% in the second quarter. U.S.
Turning to our other product group Sports content, technology, and services. Also deliver strong results. This past quarter with revenues of 59 million increasing 22% year on year
Growth was broad-based, led by Marketing and Media Services, which was up 16% year on year.
Primarily from increased uptake from technology and media companies and for contributions related to our expanded affiliate marketing capabilities.
We also nearly doubled the contributions from Integrity Services due to the uptake of products and services from our league partners and deliver 24% growth versus a year ago, from Sports Performance, due primarily to price increases.
Craig Felenstein: revenues expanded to 28% of our revenue mix as we continue to capitalize on the continued rapid market growth and the growing demand for our breadth of content and innovative product solutions. The strong revenue growth across our product portfolio translated into significant adjusted EBITDA growth in the second quarter, with adjusted EBITDA of $64 million increasing 31% year on year. Our continued focus on cost efficiencies, combined with our predictable and stable sports rights costs, enabled us to deliver significant operating leverage, with our adjusted EBITDA margin expanding approximately 250 basis points year on year to 20.1% as we continue to be diligent across our cost infrastructure. Looking at the individual cost buckets this past quarter, I will be speaking to adjusted expenses to provide a breakdown of the expenses that impact adjusted EBITDA.
Geographically, our growth continues to be broad-based, with us reporting revenue up 30% and rest of the world revenue up 9% in the second quarter.
Us revenues expanded to 28% of our Revenue mix. As we continue to capitalize on the continued rapid market growth and the growing demand for our breadth of content and Innovative product Solutions.
The strong Revenue growth across our product portfolio, translated into significant adjusted, even a growth in the second quarter with adjusted, evida of 64 million increasing 31% year on year.
Our continued focus on cost efficiencies combined with our predictable and stable Sports rights costs enabled us to deliver significant operating leverage with our adjusted. EBA margin expanding, approximately, 250 basis points a year on year to 20.1% as we continue to be diligent across our cost infrastructure.
Craig Felenstein: We have detailed in the earnings release and the financial section of the earnings presentation the bridge from IFRS amounts. This past quarter, sports rights expense increased 11% year on year to $106 million, due primarily to the continued success of our ATP content, as well as our renewed Major League Baseball partnership. Sports rights expense was down 103 basis points as a percentage of revenue, as we further capitalized on the value of our high-demand sports portfolio and the premium products we have developed. We will remain disciplined and strategic with regards to the rights we acquire, and with all of our major rights deals locked in long term, we have significant visibility moving forward. This visibility gives us confidence in our ability to drive further operating leverage across our sports portfolio as we deliver additional value to our global customer base.
Looking at the individual cost buckets, this past quarter, I will be speaking to adjusted expenses to provide a breakdown of the expenses. That impact adjusted IBA. We have detailed in the earnings release and the financial section of the earnings presentation, the bridge from IFRS amounts,
This past quarter Sports rights expense increased 11% year on year to 106 million due primarily to the continued success of our ATP content as well as our renewed Major League Baseball partnership.
Sports rights expense was down 103 basis points as a percentage of Revenue as we further capitalize on the value of our high demand Sports portfolio and the premium products we have developed.
We will remain disciplined and strategic with regards to the rights of the acquire and with all of our major rights deals locked in long term, we have significant visibility moving forward.
Craig Felenstein: Turning to people, adjusted personnel expenses were $80 million in the quarter, up 12% year on year, driven primarily by increased headcount to support growth opportunities. Importantly, our personnel expenses continued to decline as a percentage of revenue, as we closely manage headcount to ensure we are focusing our talent and resources on the most profitable growth opportunities while unlocking additional operating leverage. Adjusted purchase services were $44 million in the quarter, up 14% year on year, primarily driven by increased cloud costs to support growth initiatives, as well as higher traffic and affiliate costs related to the expansion of our marketing services business. Adjusted other operating expenses of $24 million in the quarter were up 2% year on year, declining as a percentage of revenue.
This visibility gives us confidence in our ability to drive further operating leverage across our Sports portfolio as we deliver additional value to our Global customer base.
Turning to people adjusted Personnel, expenses were 800 million in a quarter up. 12% year on year, driven primarily by increased headcount to support growth opportunities.
Importantly our Personnel expenses continue to decline as a percentage of Revenue as we closely managed headcount to ensure. We are focusing our talent and resources on the most profitable growth opportunities while unlocking additional operating Leverage.
Adjusted purchase Services were 44 million in the quarter up 14% year on year.
Primarily driven by increased cloud costs to support growth initiatives, as well as higher traffic and affiliate costs related to the expansion of our marketing services business.
Adjusted other operating expenses of 24 million in the quarter were up 2% year on year declining as a percentage of Revenue.
Craig Felenstein: With a strong first half of the year behind us, we continue to see meaningful opportunity to deliver sustained operating margin expansion over the long term, given the inherent scale we have in our business and our long-term cost visibility. As we drive further revenue opportunities, continue to closely manage our cost structure, and realize the benefit of sports rights being amortized on a straight-line basis over the life of these contracts, we expect to deliver more of every dollar of revenue to our bottom line. Looking at the full P&L, we generated a profit for the quarter of $49 million versus a loss of $1.5 million in the same period a year ago, driven by the strong operating results, along with an unrealized foreign currency gain of $54 million, primarily associated with our U.S.
With a strong. First half of the Year behind us, we continue to see meaningful opportunity to deliver sustained. Operating margin expansion over the long term. Given the inherent scale, we have in our business and our long-term cost visibility
Over the life of these contracts, we expect to deliver more of every dollar of Revenue to our bottom line.
Craig Felenstein: dollar-denominated sports rights, compared to an unrealized currency loss of $8 million in the same period a year ago. Turning to the balance sheet, we continue to be in a strong liquidity position, closing the quarter with $312 million in cash and cash equivalents and no debt outstanding. During the first half of the year, we generated $84 million of free cash flow, or a free cash flow conversion rate of 68%, compared to free cash flow of $59 million, or a 62% conversion rate in the first half of 2024. The increase in free cash flow was driven by strong operating cash flow, partially offset by higher sports rights savings.
Looking at the full P&L, we generated a profit for the quarter of $49 million versus a loss of $1.5 million in the same period a year ago, driven by the strong operating results. This was along with an unrealized foreign currency gain of $54 million, primarily associated with our U.S. dollar-denominated sports rights, compared to an unrealized currency loss of $8 million in the same period a year ago.
Turning to the balance sheet, we continue to be in a strong liquidity position closing the quarter with 312 million in cash and cash equivalents and no debt outstanding.
During the first half of the year, we generated $84 million of free cash flow, or a free cash flow conversion rate of 68%, compared to free cash flow of $59 million, or a 62% conversion rate in the first half of 2024.
The increase in free. Cash flow was driven by strong operating cash flow, partially offset by higher sports right savings.
Craig Felenstein: Cash and cash equivalents decreased $36 million since the end of 2024, as the strong free cash flow generation was more than offset primarily by the repurchase of 3 million shares for $65.5 million as part of the secondary offering during the second quarter. Looking forward, we continue to anticipate strong free cash flow growth for the full year and a conversion rate above last year's level. Please note that given the timing of sports rights payments, we do anticipate a step down in the third quarter before stepping back up in Q4. Turning to capital allocation, we have now repurchased approximately $86 million of stock at an average price of $17.96 and are nearly halfway through our $200 million share repurchase program. We continue to see value in our shares, given our strong and durable growth and expectations for significant operating margin and cash flow expansion moving forward.
Cash and cash equivalents decreased 36 million since the end of 2024, as the strong free cash flow generation was more than offset primarily by the repurchase of 3 million shares of 65.5 million as part of the secondary offering during the second quarter.
Looking forward, we continue to anticipate strong free cash flow growth for the full year and a conversion rate above last year's level.
Please note that given the timing of sports rights payments. We do anticipate a step down in the third quarter before stepping back up in Q4.
Turning to Capital allocation we have now repurchased approximately 86 million of stock at an average price of 17.96 and our nearly halfway through our 200 million share purchase program.
Craig Felenstein: It is important to note that our capital allocation priority remains investing in expanding the long-term growth potential of the company, and we will weigh returning capital shareholders versus additional organic and M&A investment opportunities in both the short and long term. Moving to our full-year expectations for 2025, given the strong second quarter results and the sustained operating momentum across our business, we are raising our full-year guidance despite headwinds from the further weakening of the U.S. dollar versus the euro. We now anticipate revenues of at least €1.278 billion, representing year-over-year growth of at least 16%. We now anticipate adjusted EBITDA of at least €284 million, representing growth of at least 28% versus 2024. This strong EBITDA growth translates to at least 210 basis points of adjusted EBITDA margin expansion in 2025.
We continue to see value in our shares. Given our strong and durable growth, and expectations for significant operating margin and cash flow expansion moving forward.
It is important to note that our Capital allocation priority remains investing in expanding the long-term growth potential of the company and we will weigh returning, Capital shareholders versus additional organic and m&a investment opportunities in both the short and long term.
Moving to our full year, expectations for 2025.
Given the strong second quarter results and the sustained operating momentum across our business. We are raising our full year guidance despite headwinds from the further weakening of the US dollar versus the Euro
We now anticipate revenues of at least 1.278 billion Euro representing year-over-year growth of at least 16%.
And we now anticipate adjusted ibida of at least 284 million euros representing growth of at least 28% versus 2024.
Craig Felenstein: We also continue to expect a free cash flow conversion rate above 2024's conversion rate of 53%. Note that this guidance does not take into account any impact from the pending IMG ARENA acquisition, given the uncertainty around the timing of closing, and we will incorporate the upside from this acquisition into our guidance once the deal closes. However, it is important to note that we do anticipate IMG ARENA's Sports Rights portfolio will not only accelerate our revenue, adjusted EBITDA, and free cash flow generation, but it will be accretive to our overall adjusted EBITDA and cash margins. Overall, the continued strong results during the second quarter reinforce Sportradar's significant growth opportunity in 2025 and beyond. We are confident in our ability to capitalize on an expanding addressable market, both in the U.S.
This strong IBA growth translates to at least 210 basis points of adjusted IBA margin expansion in 2025.
We also continue to expect a free cash flow conversion. Rate of 2024 is conversion rate of 53%.
Note that this guidance does not take into account any impact from the pending IMG Arena acquisition, given the uncertainty around the timing of closing and we will incorporate the upside from this acquisition into our items, once the deal closes.
However, it is important to note that we do anticipate IMG Sports rights portfolio. Will not only accelerate, our Revenue adjusted, even a and free cash flow generation but it will be a creative to our overall adjusted ibida and cash margins.
Overall, the continued strong results. During the second quarter, reinforced sport radar significant growth opportunity in 2025 and Beyond.
Craig Felenstein: and across the world, while delivering additional value to our clients, given our robust content and product suite and leading technology capabilities. The durable and meaningful revenue growth we are generating will help drive long-term shareholder value as we deliver consistent operating leverage and strong cash flow in the months and years ahead. Thank you for your time this morning. Carsten and I will be happy to answer any questions you may have.
We are confident in our ability to capitalize on an expanding addressable Market, both in the US and across the world. While delivering additional value to our clients, given our robust content, and product suite, and leading technology capabilities.
Durable and meaningful Revenue growth. We are generating will help Drive long-term shareholder value as we deliver consistent operating, leverage and strong cash flow in the months and years ahead.
Thank you for your time this morning and now, Carson and I will be happy to answer any questions. You may have
Operator: Thank you. At this time, we'll conduct the question and answer session. As a reminder, to ask a question, you'll need to press star one-one on your telephone and wait for your name to be announced. To withdraw your question, please press star one-one again. Please stand by while we compile the Q&A roster. Our first question comes from Ryan Sigdahl of Greg Holm Capital Group. Your line is now open.
Thank you at this time. We'll conduct a question and answer session as a reminder, to ask a question. You'll need to press star 1, 1 on your telephone, and wait for your name. To be announced to withdraw your question. Please press star 1. Again, please stand by while we compile the Q&A roster.
Analyst: Hey, good day, Carsten, Greg. Great to see the continued momentum in the business and from a numbers standpoint. I want to start with the Club World Cup. First-year expanded teams, Sportradar had the right. Curious, I guess, what you saw from a betting standpoint across your customers, and then specifically if there was an outsized benefit or what you saw within the MTS business.
Hey, good day, Carson Craig. Uh great to see the continued momentum in the business. And uh from a number of sampling,
Uh, want to start with, uh, the club World Cup. So first year expanded teams, uh, for 8 or had the right? So curious, I guess what you saw from a betting standpoint of your customers and specifically uh if there was an outsized benefit or or what you saw, within the MTS business,
Carsten Koerl: Hi, Ryan. Nice to hear you. The World Cup was very good for MTS, and it was the right decision that we jumped on this deal on a very short notice. What is very interesting is that we saw there was a big interest from the media company to drive traffic from betting into the media space. We fully achieved this, and we strengthened the partnership here. From an MTS perspective, it was, of course, very good because there was not much soccer content at this time, and we saw a pickup here.
Hi Ryan. Nice to hear you. So the World Cup was very good for MTS, um, and it was the right decision that we jumped on this deal on a very short notice. Um, what is very interesting is that we saw there was a big interest from the media company to drive traffic from betting into the media space. So we fully achieved this and we strengthened the partnership here and from an anti MTS perspective. It was, of course, very good because there was not much soccer content at this time and we saw a pickup here.
Analyst: Great. For my second question, your competitor just announced the rights for European leagues. It was previously held by IMG ARENA. You guys are in the process of that pending acquisition. If I look at slide 16, both past decks as well as the current one, it does not appear like the European League soccer were ever included in that pending acquisition. I guess curious if that is true, and then your considerations of those rights specifically. Second to that, I guess any change in expectations for IMG does not sound like from a financial standpoint, but anything that has jumped out in the past couple of months. Thanks.
Great. Uh, for my second question, just your competitor are just announced the rights for European leagues. It was previously held by IMG Arena. Um, you guys are in the process of of that pending acquisition, but look at slide 16. Um, both passed decks as well as the current 1. It doesn't appear like the European League Soccer, wherever included in that pending acquisition. But I guess curious if that's true and then your considerations of those rates specifically. Um, and then
Second to that, I guess, any change in expectation for IMG. It doesn't sound like from a financial standpoint, but anything from, you know, I guess that's jumped out in the past couple months. Thanks.
Carsten Koerl: It was a loss-making deal, the European Leagues for IMG. We asked IMG before we closed the deal to wind this up and find a settlement, which they did. It is not in the numbers here, right? Not in the prediction from IMG. Second, there is no audiovisual inventory in those rights, so it is data rights for these leagues, and we have many of the audiovisual rights for the individual leagues, so we feel in a pretty strong position here.
Um, it was a loss-making deal, the European leagues for IMG. So we asked IMG before we closed the deal to wind this up and find a settlement, which they did. Um, so it's not in the numbers, you're right, not in the prediction from IMG. Second, um, there is no audiovisual inventory in those rights. So it's data rights for these leagues, and we have many of the audiovisual rights for the individual leagues. So we feel in a pretty strong position here.
Operator: Thank you. One moment for our next question. Our next question comes from Jason Tilton of Kangor Genuity. Your line is now open.
Thank you. 1 moment for our next question.
In our next question, comes from the line of Jason Tilton of Concord genuity. Your line is now open
Analyst: Hi, good morning. Thanks for taking the question. I am wondering on Managed Trading Services, you saw a particularly strong revenue growth there. I wonder if you could share a little bit more about how much the large cohort of new MTS customers that you brought in in the first half of last year has sort of been impacting that business and just more broadly how uptake of that product has trended over the past few months and your ability to move more customers into that sort of higher-value product in the back half of the year.
Hi, good morning, thanks for taking the question. Um, I'm wondering on manage betting Services, you saw particularly strong growth Revenue growth there wanted to give you a share a little bit more about how much the the large cohort of new NTS customers and you brought in in the first half of last year, has sort of been impacting that business and just more broadly. Um, how uptake of that product has trended over the past few months. And as you as you figure, your ability to move more customers into that sort of higher value product, um, in the back half of the year,
Carsten Koerl: Yeah, as told in the script, so it is 50 clients which we onboarded in 2024. The pipeline which we see at the moment is precisely 42 new clients which are in the integration period, so we see a very, very strong pickup on the Managed Trading Services. 23% is reflecting this. We are now trading close to $45 billion in turnover on this. So we have a very nice tailwind here with the trading services, and I think one remark here is we hear from many clients, they focus more and more on marketing and branding and saying, "For the trading, we leave this with you guys. You deliver us the better results." Purely given by the volume of trading what we have, the number of tickets which we see, the mechanic and the mathematics of the big numbers works here perfectly.
Yeah, like in I like to it was script so it's a 50 lines, which we onboarded in 2024, the pipeline, which we see at the moment is precisely 42 new clients which are in the integration period. So we see a very, very strong pickup on the managed trading Services. 23% is reflecting this. We are now trading close to 45 billion in turnover on this. So there is um, we have uh we have a very nice Tailwind here with the trading services and I think 1 REM here. Is we here for many clients? They focus more and more on marketing and branding and saying, for the trading. We leave this with you guys, you deliver us the better results. Purely, give them by the volume of trading. What? We have the number of tickets, which we see the mechanic and the mathematics of the big numbers books. You perfectly
Analyst: Great. Very helpful. One quick follow-up would be, you mentioned in your prepared remarks some of the conversations you are having with media companies on some fan engagement solutions. Wondering if you could share a little bit more about is this sort of new solutions you are developing with them, if it is existing products you have already developed for sportsbook customers that you are selling into that, and how meaningful that opportunity is on a go-forward basis.
Great, very helpful and 1, quick follow-up would be, um, you mentioned in the in your preparator marks. Um, some of the conversations you're having with media companies, on some fan engagement Solutions, wondering, if you could share a little bit more about, um, is this, you know, sort of new Solutions, you're developing with them if its existing products you've already developed for sports book, customers, they are sort of selling into that and how meaningful that opportunity is, um, on go forward basis.
Carsten Koerl: We think it is pretty meaningful. We see the three markets connected with each other, and that is increasing the media companies, sports betting, and sport by itself. This is driven by the information of the sport fan. There is a need, what we saw now in the World Cup, that the media companies are recruiting from the sports betting space, and we are the perfect partner for this because on our platform, we have the information about the sport, we have the information about the sport fan, and we know the need from the sports by themselves. This is connected. We do not see too many media companies tapping into the sports betting space, but we see that it is connected with sports betting with client acquisition. Here we start the flywheel, so the tools which we have, the ad service which is playing in there, and the conversion.
Is this all the tools which we have to add service, which is playing in there and the conversion.
Analyst: Thank you very much.
Operator: Thank you. One moment for our next question. Our next question comes from David Katz of Jeffries. Your line is now open.
Thank you very much.
Thank you. 1 moment for our next question.
In our next question, concern, line of David Katz of Jeffrey's your line is now open.
Analyst: Hi, good morning, everybody. Thanks for taking my question. Craig, I think you talked about this a little bit, but for the team, I wanted to just look at the ROW business and its organic growth rate. My sense is that there is some FX in there, and the growth rate, at least on the surface, looks a bit lower than it has been for the past several quarters. What is in there and what is really going on and what is kind of the organic growth rate of that business, thinking about it the rest of this year and next?
Craig Felenstein: Sure. Thanks for the question, David. When you think about the rest of the world, there really is not much currency impact in the rest of the world business. The majority of our currency impacts come from the U.S. dollar-denominated results that ultimately flow back into our euro. What you are seeing with regards to the rest of the world in the quarter is predominantly just timing around media campaigns that we have seen from an advertising perspective. When you look at the first quarter, you had really strong growth on the advertising side of the house due to some additional campaigns that took place in the first quarter. There was less of that in the second quarter.
Uh, hi. Good morning, everybody. Uh, thanks for taking my question, Craig. I think you talked, about those a little bit, but for the team I wanted to just look at the row business and it's, you know, organic growth rate. My my sense is that there's some, uh, FX, you know, in there and the growth rate at least on the surface, you know, looks a bit lower than it's been for the past several quarters. What, what's in there, and what's really going on, and what's kind of the organic growth rate of that business thinking about it, the rest of this year. And next,
Craig Felenstein: When you look at the six months and what has happened ultimately with our Ads Business over the first six months of the year, it is up strongly versus where it was in 2024. There is going to be some choppiness to that line given the realities of the ad campaigns and when they ultimately come to fruition.
Sure. Thanks. Thanks for the question, David. So, when you think about the rest of the world, there really is, not much currency impact in the rest of the world business. The majority of our currency impacts come from the US dollar, uh, denominated results that ultimately flow back into our Euro. But what you're seeing with regards to the rest of the world in the quarter is predominantly just timing around media campaigns. That we've seen from advertising perspective, right? When you look at the first quarter, you had really strong growth, then the advertising side of the house, uh, due to some additional campaigns that took place in the first quarter, there was less of that in the second quarter.
When you look at the 6 months and what's happened ultimately with that, uh, our advertising business, over the first 6 Months of the Year, it's up strongly versus where it was in 2024. But there's going to be some choppiness to that line given the realities of the ad campaigns. And when they ultimately come to fruition,
Analyst: Understood. Thanks very much.
Operator: Thank you. One moment for our next question. Our next question comes from Chad Beynon of Macquarie. Your line is now open.
Understood. Thanks very much.
Thank you. 1 moment for our next question.
Analyst: Good morning, Carsten Koerl and Craig Felenstein. Thanks for taking my question. Wanted to start with in play in Q2, I guess more focused on the U.S. penetration and how we continue to see that evolve. Can you talk about what that looked like either from a year-over-year standpoint or sequential standpoint? Is that still moving in the right direction and still gives you confidence in some of the things that you talked about at the Investor Day? Thank you.
In our next question, comes from the line of Chad Bain of McQuarrie. Your line is now open.
Carsten Koerl: Hi, Chad. Carsten here. We see what we reported on the Investor Day. We see a strong conversion from in play in the U.S. At the moment, the numbers which we have, and that is based on averages from the clients and what we see on our Managed Trading Services platform, shows that we are around about 50% in play to the pre-match betting. We see that this trend goes into the direction of more than 70%. On our Managed Trading Services trading platform, we are significantly higher than 70% for the U.S. matches from the rest of the world. We see a strong conversion going into this. It means for us, from a financial perspective, given the run rate and the growth in the U.S. on the projection on 2029, that means 1% conversion is accounting to $6 million EBITDA for us.
Good morning. Uh, Carson and Craig, thanks for taking my question, 1 to start with, uh, in play in Q2, I guess more focused on uh, the US penetration and and how we continue to see that evolved. Um, can you talk about what that looked like either from a year-over-year standpoint or or SEC sequential standpoint? Is that still moving in the right direction? And, uh, still gives you confidence and some of the things that you talked about at the investor day. Thank you.
Hi Chad, costing you. So we see what we reported on the investor day. We see a strong conversion from imple in the US. So at the moment, the numbers which we have and that's based on averages from the clients and what we see on our MPS platform shows that we are round about 50% in play, um, to the pre-match setting, and we see that this trend goes into the direction of More than 70%.
Our MPS trading platform. We have significantly higher than 70% for the US matches from the rest of the world.
Carsten Koerl: That is more or less a direct flow-through. There are a little bit platform costs involved in there, but it is more or less pure cash. From 1%, it is $6 million on the current run rate. We see 50% proportionate average, and we believe it is going higher than 70%.
And we see a strong conversion going into this. It means for us from a financial perspective given the Run rate and the growth in the US on the projection on 2029. That means 1% conversion is accounting to 6 million ebita for us and that is more or less. A direct flow through. There are a little bit platform cost involved in their but it's more or less pure cash. Um, so from 1 percent, it's a 6 million on the current run rate and we see 50% proportion in average and we believe it is going higher than 70%.
Analyst: Great. Thank you, Carsten. Then, Craig, for the Q2 sports betting margin, was there any major differential versus what you guys had forecasted? If so, are you willing to quantify that? Thank you.
Great. Thank you Ken, and then Craig for the Q2 sports betting. Uh, margin was there any, um, major differential versus kind of what you guys had had forecasted and if so um are you willing to quantify that? Thank you.
Craig Felenstein: We do not quantify, obviously, how everything changed versus our expectations. But I will say the results pretty much came in as expected. We have such diversity with regards to the sports content that we have globally that an individual outcome of a singular event has a very rare ability to move the needle for us in terms of performance. So the margin that we achieved with regards to pretty much all of our business lines came in a little bit better than we expected in the quarter because we were able to take some costs out of the overall infrastructure of the company. But in terms of the performance with regards to the results that happened throughout the world, there was no change versus expectation.
Yeah, we we don't quantify obviously, how, how, how everything changed versus our expectations, but I, I will say, is the results. Pretty much came in as expected. You know, we have such diversity with regards to the, the sports content that we have globally that an individual outcome of a singular event, has a very rare ability to move the needle for us in terms of performance. So, the margin that we achieved with regards to pretty much all of our business lines came in a little bit better than we expected in the quarter because we
We're able to take some costs out of the overall infrastructure of the company. But uh in terms of the performance with regards to the results that happened throughout the the world, there was no change versus expectations.
Analyst: Okay. Thank you both. Nice quarter, guys.
Craig Felenstein: Thank you.
Okay, thank you. Both nice quarter, guys.
Operator: Thank you. One moment for our next question. Our next question comes from Barry Jonas of Truth. Your line is now open.
Thank you.
Thank you. 1 moment for next question.
now, open
Analyst: Hey, guys. Thanks for taking my questions. As you look at the recent bidding processes for sports rights deals, I am curious how you would characterize just how rational the pricing environment is today. Thanks.
Hey guys, thanks for taking my questions. Uh, as you look at the recent bidding processes for sports right deals, I'm curious how you would characterize. Just how rational the pricing environment is uh today. Thanks.
Carsten Koerl: We saw now the European Leagues and the Serie A, I guess that's where you are referring to. For the European Leagues, I gave you my answer. That was a loss-making deal for IMG. It is the data deal without the audiovisual rights. We looked on it, and we find that from a commercial perspective, not fitting to our rights. The same for the Serie A. We said to the market that we stay very disciplined on rights acquisitions. We have high hurdles, and we have a clear definition of what is the return, what we expect from those rights. If the right is not fitting to it, we can't take it. That was the process here. We didn't see that for this price, there was a fit in our portfolio.
Well, we saw now the European leagues in this area. I guess. That's where you are referring to, for the European leagues. I gave you my answer. So that was a loss-making deal for IMG and this is the data deal without the audio visual rights. Um, so we looked on it and we find that um, from a commercial perspective, not fitting to our our eyes, um, the same for the Sarah. So we said to the market that we stay very disciplined on, right Acquisitions. We have high hurdles and we have a clear definition. What is the return? What we expect from those rights here throughout the right, is not fitting to it.
Carsten Koerl: One last thing is, you know that we have all our key rights to achieve the aims which we highlighted in the Investor Day for the next three years. We are pretty clear in the execution when it comes to onboarding new rights. We see already a lot of new rights coming to us from IMG.
Uh, we we can't, uh, we can't take it and that was the process here. So we didn't see that for this price. There was a fit in our portfolio and 1 last thing is, you know, that we have all our key rights, um, to achieve the aims which we highlighted in the investor day for the next 3 years. So we are pretty clear in the execution when it comes to onboarding new rights and we see already a lot of new rides coming to us from IMG.
Analyst: Great. That's really helpful. Then, clearly a lot of talk around prediction markets out there. I'm just curious what you think would have to happen for you to become more constructive on prediction. Thanks.
Carsten Koerl: I think we are very constructive about that. That's on the one hand. It is a regulatory question, which is mainly a tax issue. As long as we have not a clarity on this, how the predictive markets are taxed, I think it is very, very difficult for us and for the market to see that we can really invest here. We are very open for this, but I think that's a question which must be solved. The second thing about the size of the prediction market, I think we get a very good feeling if you look to the U.K. and if you look to Betfair, they're existing since more than 20 years. They have a very good business, but the dominant business is sports betting.
Great. That's really helpful. And then you know, clearly a lot of talk uh uh around prediction markets out there. I'm just curious what you think would have to happen for you to become more constructive. Uh, on on prediction. Thanks.
Carsten Koerl: The beauty of sports betting is that you can nearly price everything because the bookmaker is the one who is holding then the risk. On these predictive markets, you're going to need to match it always with an individual. That gives you less flexibility to accept many different betting types. That's how we see it. But in principle, we welcome this. In principle, we think that's a good additional business for us because they need content.
Oh, I think we are very constructive but that's that's on the 1 hand. Um, it is a regulatory question um which is mainly a tax issue. So as long as we have not, um, a Clarity on this, how the predictive markets are taxed, I think it is very, very difficult for us and for the market to see that we can really invest you. Um, we are very open for this, but I think that's a question which must be solved. And the second thing about the size of the prediction Market, I think we get a very good feeling if you look to the UK and if you look to bet, Fair the existing, since more than 20 years, they have a very good business. But um, the dominant business is sports betting and the beauty of sports betting is that you can merely price everything. Because the bookmaker is the 1 s
Different betting cards, that's how we see it. But um in principle we welcome this in principle. We think that's a good additional business for us because they need content.
Analyst: Thank you.
Operator: Thank you. One moment for our next question. Our next question comes from a line of Jordan Bender, Citizens. Your line is now open.
Thank you.
Thank you. 1 moment for our next question.
Analyst: Good evening, everyone. Thanks for the question. Carsten, in your prepared remarks, you said something along the lines of looking at new revenue streams. Is this a comment related to ongoing initiatives, or are there adjacent verticals out there you would be interested in entering? If so, can you provide any color there? Thank you.
In our next question comes from the line of Jordan Bender citizens Airlines. Now open
Morning everyone, thanks for the question. Carson in your prepared. To March you said something along the lines of looking at new revenue streams is this a comment related to ongoing initiatives, or are there adjacent verticals out there you'd be interested in entering and if so, can you provide any color there? Thank you.
Carsten Koerl: We try to stay razor-sharp focused on the strategy, which we highlighted. So additional revenue streams, for sure, from iGaming platform business, which we highlighted. There are some nice plays with AI content distribution to media partners. These are the things. There is nothing new to what we said on the Investor Day here, but we see this is beginning to pick up. I cannot speak at the moment about the media companies which are in the integration of AI content generation, but we do this. We have two test clients here where we see how we are going. We also have a car manufacturer who is looking into this automatized sport content production with AI. So we see some nice revenue opportunities.
Please try to stay razor shop focused on the strategy which we highlighted, so additional revenue streams for sure. From I gaming platform business, which we which we highlighted, there are some nice plays with AI content distribution to Media Partners. So these are the things there is nothing new to what we said on the investor day here, but we see this is beginning to pick up. I can't speak at the moment about the media companies, which are in the integration of AI content generation, but we do this. And we have 2 test clients here, where we see how we are going. We also have a car manufacturer who is looking into this automatized sport content production with AI. So we see some nice Revenue opportunities.
Analyst: Great. On the follow-up, you called out last quarter free cash flow conversion should decline in the second quarter, yet it improved significantly. However, the full-year conversion number did not really change. Was there anything shifting into the second quarter that helped conversion, or are you just being constructive on the full-year outlook? Thank you.
Craig Felenstein: Yeah, the one challenge, thank you for the question, Jordan. The one challenge when you are trying to predict what is going to happen in a quarter from a free cash flow perspective comes down to the timing of when your actual payments go out the door for some of these sports rights. The shifting between quarters sometimes could ultimately drive things higher or lower on a quarterly basis, but obviously over the course of the year, it plays itself out the right way. What I will say is when you look at the conversion that we had in the first six months of the year of 68%, it is ahead of where we were last year at around 62%. We are continuing to grow our cash flow conversion, and we do expect to continue to do that for the full year, like we said originally in our guidance.
Great. And on the follow-up you called out last quarter of free cash flow conversion should decline in the second quarter. Yet it improved significantly. However, the the full year conversion number didn't really change. Was there anything shifting into the second quarter that helped conversion or you just being constructive on the full year outlook? Thank you.
Craig Felenstein: But you will see some quarterly fluctuations based off of the timing of sports payments.
Analyst: Thank you very much.
What I will say is that when you look at the conversion we had in the first six months of the year of 68%, it is ahead of where we were last year at around 62%. So, we are continuing to grow our cash flow conversion, and we do expect to continue to do that for the full year, as we said originally in our guidance. However, you will see some quarterly fluctuations based on the timing of the sports payments.
Craig Felenstein: Thank you.
Thank you very much.
Operator: Thank you. One moment for our next question. Our next question comes from a line of Clark Lampton of BTIG. Your line is now open.
Thank you.
Thank you. 1 moment for our next question.
Analyst: Thanks for taking the questions. I have two quick ones. First, Craig Felenstein, I wanted to see if you could follow up on the comments you made earlier around Rest of World performance and the pause in marketing spend. Is there anything, I guess, if you think back on what happened in Q2 that you would attribute that to, or any reason why we should think about it as potentially transient? The second question is on the MTS business. Nice momentum that you are seeing there. Carsten Koerl, last quarter, you called out strength in Brazil. It seems like maybe we are seeing some of that in the pipeline right now. Anything that you could tell us, or I guess color you could give us on distribution of new customers? Are you seeing more from international markets, U.S. markets? Is there a skew there? Thanks very much.
In our next question, concern, line of Clark Lantern of btig Atlanta is not open.
Thanks for taking the questions. Um, I have 2 quick ones. Um, first Craig, I wanted to see if you could follow up on, um, the comments you made earlier uh, around the rest of the world performance and the pause and marketing. Spend. Is there anything? I guess, if you think, you know, back on what happened in 2 that you would attribute that to um, or any reason why we should think about it as potentially. Um um transient and then the second question is on um the MTS business um nice momentum that you're seeing there. Um, Karsten last quarter, you called out strength, in Brazil, it seems like maybe we're seeing some of that in the pipeline right now. Um, anything that you could tell us, or I guess color, you could give us on distribution of new customers. Are you seeing more from International markets us markets? Is there a skew there? Thanks very much.
Craig Felenstein: Sure. Thanks, Clark. I will start with the first question, and then Carsten can answer the second. There was really no change to the business momentum or the business trends with regards to the advertising campaigns that we saw. Again, you will see some choppiness to this business, just given it requires the sportsbooks to ultimately want to spend on advertising opportunities. Sometimes we see more of that in the quarters, sometimes we see less. Just like I said with free cash flow and the quality of the free cash flow that we are generating, when you look at the advertising business over a multi-quarter period, we do expect there to be some continued nice momentum in that business. You see that year to date with regards to the advertising business.
Craig Felenstein: We do expect to see some really nice momentum in the media and Ads Business in the back half of the year, based off of everything that we have seen with regards to our conversations with our customers. I think when you look at the full-year results, they will be very much in line with the expectations that we have for the year.
Carsten Koerl: To the MTS business, we are 23% up in this year on MTS, which is a pretty strong performance. Looking to the cohorts, the 50 from 2024, pretty diversified. It is not fixed location here. Brazil is contributing, but we see it all over the place. More important is the pipelines. We have nearly the same size pipeline now in the integration, so we expect continued strong growth in this segment. Looking from an overall turnover, which we enjoy here, it is a $45 billion, which is very, very strong from an uplift perspective. The bigger this is growing and the higher the number of the tickets, the better the algorithms are working. We deployed Alpha in most of the products here, so we see a strong uptick and a better performance for our clients, which is the reason why we can onboard and recruit more clients.
Sure, thanks Clark. I'll start with the first question and Carson can answer the second. There was really no change to the business momentum or the business Trends with regards to, uh, the advertising campaigns that we saw again. You will see some some, uh, choppiness to this business just given it requires the sports books to ultimately want to spend on Advertising opportunities. Uh, sometimes we see more of that in the quarter or sometimes we see less just, like I said with free cash flow and and the quality of the free cash flow that we're generating. When you look at the advertising business over a multi-core period, we do expect there to be some continued, nice, momentum in that business. And you see that year to date with regards to the advertising business, we do expect to see some really nice momentum in the, the media and add business in the back half of the year and, uh, based off of everything that we've seen with regards to our conversations with our customers. So I think, when you look at the full year results, they'll be very much in line with the expectations that we have for the year.
Well and to the MTS business, we are 23% off in this year on MTS which is a pretty strong performance um looking to the cohorts. Um the 50 from 2024 pretty Diversified so it's not. Um, fixed location here. Yes, Brasil is contributing but we see it all over the place. Um, more important is the pipeline so we have nearly the same size pipeline now, in the, in the integration. So we expect continuous strong growth in this segment looking from our overall turnover, which we enjoy here. It's a 45.
Billion. Which is very, very strong from an uplift perspective and the bigger this is growing and the higher. The number of the tickets, the better the algorithms are working. We deployed Alpha in most of the products here so we see a strong uptick and a better performance for our clients which is the reason why we can onboard and recruit more clients.
Analyst: Thanks very much.
Thanks very much.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Michael Hickey of The Benchmark Company. Your line is now open.
Thank you. One moment for our next question.
In our next question, comes from line of Michael hickey of The Benchmark company. Your line is now open.
Analyst: Hey, Carsten, Craig, Jim, Greg Kohler, guys, thanks for taking our questions. Just a quick update, if possible. Carsten, on Brazil and what you are doing with your iGaming platform there in terms of marketing services, and I guess as a platform and the scalability, you think of that moving forward into other markets and potentially the U.S. I have a follow-up.
Hey, Carson, Craig, Jim, uh, great quarter, guys, thanks for taking our questions. Uh, just just a quick update as as possible.
Person on on Brazil.
And what you're doing with, with your eye gaming, uh, platform there in terms of um a marketing services. And I guess as a platform and the scalability, you think of of that uh moving forward into other markets and potentially the US and then follow up.
Carsten Koerl: First, uptake in Brazil. We see at the moment 70 licensed operators with more than 140 brands. We integrated now with 50 of them. We are the biggest player in this market. We are the one who is running fastest in this early stage. It is a good testament for our investment there and for the work of the team. Looking to iGaming, it is our test market. I would like to remind everybody what we understand with iGaming. We believe that from a sports betting perspective, iGaming and sports betting should not be treated separately by the operator. It belongs to each other, and there is a connection. At the moment, it is separated. We believe that the 360-degree flywheel here is acquisition with sports betting. We have all the tools with this, with programmatic advertising. We classify this.
Um, first uh, uptake in Brazil, so we see at the moment, 7770 licensed operators with more than 140 brands.
Carsten Koerl: We have our own DSP and SSP here that we can convert. That goes into the full sports betting funnel up to the full platform management or trading services. Then we switch it over with campaign management, with bonus systems into the iGaming space, and there is a connection with retention. If you see a live match in the streams, you get all the side markets, the Micro Markets. For example, in a tennis match, if there is a 20-second break because they are changing the balls, we can show if we know that user is also interested in basketball, for example, we can show a spin with a basketball-branded slot, and that goes within 20 seconds. This is the kind of connection which we see. This is the 360 service, and this is what we test at the moment in the market, and Brazil is our test market.
That we can convert that goes into the full sports betting funnel up to the full platform management or trading services.
Carsten Koerl: We have 34 integrations already from the 50 clients there. There is a strong uptick, but from a result perspective, of course, we expect in the future significant more contribution than we see at the moment.
Then we switch it over with campaign management with bonus systems into the I gaming space, and there is a connection with retention. So, if you see a live match in the streams, you get all the side markets, the micro markets. But for example, in a tennis match, if there is a 22nd break because they're changing the post, we can show, if we know that user is also interested. In basketballs, for example, we can show, um, a spin, uh, with um, with a basketball branded slot. And, um, that goes within a 22nd, this is the kind of connection, which we see. This is the 360th, and this is what we test at the moment in the market. In Brazil is our test Market, we have 34 Integrations already from the 50 clients there. So, there is a strong uptick but from a result perspective, of course, we expect in the future, significant more contribution than we see at the moment.
Analyst: Nice. Sounds good. The second question from us, obviously, you have an incredible and global perspective on the growth of sports betting in as much as you can. Obviously, you are not an operator; they are your partners. But when you look at the U.S. gaming market in Q2, just wondering your sort of view, I guess, on the health of the market when you look at Handle, GGR, and Bold. Is it sort of tracking or beating your expectations and sort of early Q3 trends if the momentum is, in fact, continuing or not? Thank you, guys.
Nice. Sounds good. The um
Second question from us, obviously you you have an incredible uh and Global uh perspective on the growth of uh sports betting in as much as you can. Obviously you you're not an operator that your partners. When you look at the um us gaming Market in in Q2 just wondering your sort of view I guess.
On on the health of the market. When you look at handle ggr and bold, is it sort of tracking or or beating your expectations and sort of early Q3 trends of the momentum is, in fact, uh, continuing or not. Thank you guys.
Carsten Koerl: Yeah. So giving predictions in the future for the Q3, I am very careful with these things. But it is something where we see a very strong U.S. market. We see very strong growth. We see nice opportunities. I was 10 days ago in California trying to understand better what goes on here, where do we see these trigger points for potential market openings. So it is interesting. It is not something which will happen in the next quarter, no worries. But we see that there is a very strong adaptation in the U.S., and we see that is a continued trend. But looking into Q3, lots of matches are starting. Usually, you see some surprises in the early days. So we think tendency-wise, if you ask me now privately, I would see some stronger hold numbers.
Carsten Koerl: We are not depending on this, as you know, from our business model, but that is what we currently see in the U.S.
Yeah, so giving predictions in the future for the Q3. I'm, I'm very careful with these things, but, um, it's something where we see a very strong us. Um, we see, very strong growth. Uh, we see nice opportunities, there was, um, 10 days ago in California. Um, trying to understand better. What goes on here? Where do we see this trigger points for potential Market openings. Um, so it's interesting. It's not something which will happen in the next quarter. No worries. But, um, we see that there is, um, there is a very strong adaptation in the US and we see that's a continued gra, um Trend, but, um, looking into Q3 lots of matches are starting usually you see some surprises in the early days. So we think a tendency wise, if you ask me in our privately, I would see some stronger host numbers. We are not depending on this.
Analyst: Thanks. Thanks, guys. Good luck.
As, you know, from our business model. But um that's what um we currently see in the US.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Bernard McTernan of New Dominic Company. Your line is now open.
Thanks. Thanks guys. Good luck.
Thank you. 1 moment for our next question.
Analyst: Great. Thanks for taking the questions. To start, Carsten, in the prepared remarks you mentioned, 40% of clients taking four or more products. Is there any color that you can provide of the take rate of these clients that are taking four or more products versus 60% who are taking four or less, and any context for how that 40% penetration has changed over time?
In our next question, comes from the line of Bernie mcternan of Newman company. Your line is now open.
Great. Um, thanks for taking the questions. Uh, just to start Carson, the prepared remarks you mentioned 40% of clients taking 4 or more products. Um, is there any color that you can provide of the take rate of these clients that are taking for more products versus 60%, who are taking 4 or less? And, and any context for how that 40% penetration has changed over time?
Carsten Koerl: As highlighted on the Investor Day, it is important for us to see that 40% are taking those four products from our clients. So we have a 60% where we still have a lot of abilities, and for this 40%, we see trends in upselling. As a sample from an MTS perspective, where we indicated the 50 customers and now the 42 in the pipeline, that is a strong testament to how we can make the take rate higher and do this upselling. This is the flywheel which we execute here. Of course, with the client relations which we have and with the binding tools which are in there, that is significantly easier for us. The same works, by the way, for the Ads Business. That is how we try to do it. I cannot classify you now the numbers from the upselling.
Well, um, like highlighted on the investor day. Um, it's important for us to see that 40% are taking those 4 products from our clients. So we have a 60%, where we still have a lot of capabilities. And for this 40%, we see Trends and upselling. And as a sample from an mtss perspective, um, where we indicated the 50 customers and now the 42 in the pipeline that is a strong Testament, how we can, um, make the take rate higher and do this upselling. So this is the flywheel which we execute here, of course, with the client relations, which we have and with the binding tools which are in there, that's significantly easier for us, the same works, by the way, for the add service, so that
Carsten Koerl: Maybe Craig can do this, but we are not disclosing those numbers normally.
How we try to do it, I can't classify you. Now the numbers from the upselling, maybe crack can do this. But we are not disclosing. Those numbers normally
Analyst: Okay. Understood. I believe you mentioned higher trading margins at MTS in the quarter. Can you just talk about what is driving this? Is this a one-time benefit, or is it more of just sustainably being able to trade at a higher margin?
Carsten Koerl: There are always result-driven margin improvements. Difficult to figure out how much is now from a resulting perspective, how much is from the algorithms. But tendency-wise, one thing is for certain, with AlphaOds and more information, we see better trading results. That is a trend which we will see continuing. That is simply a trend of the math and the big numbers, and we are very satisfied to see those impacts.
Okay, understood, um and I believe you mentioned higher trading margins at at MTS in the quarter. Can you just talk about what's driving this and is this a a 1-time benefit or is it more of just sustainably being able to to trade at a higher margin?
Analyst: Understood. Thanks, Carsten.
But tendency buys 1 thing is for certain with Alpha. Oh and more information we see better trading results and that is a trend which you will see continuing that simply a trend of the mass and the big numbers and we are very satisfied to see those impacts.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Samuel Nielsen of J.P. Morgan. Your line is now open.
Understood. Thanks Carson.
Thank you. 1 moment for our next question.
Analyst: Hey, morning, everyone. Congrats on the quarter, and thanks for taking my question. Carsten Koerl, when we think about the international PAM, obviously, under the current footprint, it continues to grow quite nicely. But wondering if there's any potential new markets we should be keeping an eye out for for legalization over the next 6 to 12 months. You kind of talked about Brazil a little bit earlier in the Q&A. Is there any way to quantify kind of the impact that it may have had on this year's expectations?
In our next question, comes from line of Sam. Nielsen of JB Morgan. Your line is now open,
good morning everyone. Congrats on the quarter and thank you for taking my question. Um, Carson when we think about the international Tam, obviously, under the current footprint, it continues to grow quite nicely. Um, but wondering if there's any potential new markets, we should be keeping an eye out. Our eye out for for legalization over the next 6 to 12 months and then you kind of talked about Brazil a little bit earlier in the Q&A. Um but is there any way to quantify, kind of the impact that it may have had on this year's expectations?
Carsten Koerl: Brazil is continuing to grow. We believe it is at the moment on a $2 billion all over, and it goes probably to a $5, maybe a $6 billion in the next four years. That is a strong growth profile, and we are the biggest player in this market and an early adopter. We see continuous growth, and I gave you a bit of the size of the numbers from a 10. What we see in APEC is very interesting. We continue to be a strong promoter for Japan. We are very happy with Major League Baseball and the rights there. We believe that this might be a key element for any upcoming regulation. We see some nice developments in India. We see some nice developments in Thailand. Thailand is probably most progressive in this perspective, but we see growth opportunities in those markets.
Well, in the first Brazil is continuing to grow. We believe it's at the moment on a 2 billion all over. And it goes probably to 5, maybe a 6 billion in the next 4 years. So that's a strong growth profile. And we are the biggest player in this market and then early adopters. So we see continuous growth and that gave you a bit of size of the numbers from a 10.
Carsten Koerl: Of course, we see growth opportunities around the globe. Looking to Europe, we are ramping up now for the World Cup in the next year. Usually, that is a good period. You see more clients coming in. You see more activities.
Um, what we see in Apec is very interesting. We continue to be a strong promoter for Japan. Um, we are very happy with major league baseball and the rights there, we believe, um, that this might be a key element for any upcoming regulation. We see some nice developments in India. We see some nice developments in Thailand, um, Thailand probably most Progressive in in this perspective, but we see growth opportunities in those markets. Of course, we see growth opportunities around the globe. Looking to Europe, we are ramping up now for the World Cup in the next year. Usually that's a good period. You see more clients coming in, you see more activities.
Analyst: Got it. That is great. Thank you. In terms of U.S. revenue, obviously, it maintained its strong growth from the first quarter there. Wondering if there is anything in the back half of 2024 that we should be thinking about you guys lapping going into the second half of this year and kind of our modeling there.
Got it, that's great. Thank you. And then, in terms of U.S. revenue, obviously it maintained its strong growth from the first quarter. I'm wondering if there's anything in the back half of '24 that we should be thinking about as you guys are lapping going into the second half of this year and how we should model that.
Craig Felenstein: Thanks for the question, Sam. When you look at the year-on-year from 2025 versus 2024, the results are pretty much apples to apples for the course of the year. We had the addition of our Major League Baseball deal, which started towards the tail end of the first quarter and is kind of rolling through the rest of the year. But we had Major League Baseball previously, so there's a little bit of higher cost from that perspective for this year. Nothing significant, but something to point out. So overall, when you're looking at growth in Q3 and growth in Q4, it should be very much on an apples-to-apples basis.
No. Uh thanks for the question, Sam. You, when you look at the year on Year, from 25 versus 24, the results are pretty much Apples to Apples for the the course of the year. You know, we had the, the addition of our Major League Baseball deal, which started, uh, towards the tail end of the first quarter, and it's kind of rolling through the rest of the year. But we had Major League Baseball previously. So there's a little bit of higher cost from that perspective, for this year, nothing significant. But, uh, so we need to point out. So overall,
When you're looking at growth in Q3 and growth in Q4, it should be very much uh on an Apples to Apples basis.
Analyst: Thank you.
Operator: Thank you. One moment for our next question. Our next question comes from a line of Ben Miller of Gomez X. Your line is now open.
Thank you.
Thank you. One moment for our next question.
Analyst: Great. Thanks so much for taking the questions. I am curious if you could provide some updates on the path from here for the 4Sight product. Just any color on how you think about the mix of growth from increasing the penetration of sportsbooks that have adopted or percent of matches that can be streamed via 4Sight over time would be helpful. Thanks.
In our next question, comes from the line of Ben Miller of Gomez. A line is now open.
Great. Thanks so much for taking the questions. I'm curious. If you could provide some updates on the path from for uh from here, for the foresight product.
Just any color on how you think about the mix of growth from increasing the penetration of sportsbooks that have adopted, or percent of matches that can be streamed via Foresight over time, would be helpful. Thanks.
Carsten Koerl: 4Sight is a stimulation product. What it should do is it should drive traffic into the live betting. We see with the Lotomotica Goldbets study that this is excellent. So it is working very, very well. Strong conversion, strong drive into live betting, that is the purpose of the product. So user engagement. We rolled out the product now in basketball. We will roll it out for Major League Baseball very soon. We developed it for soccer, like we highlighted. Of course, we rolled it out over all our tennis properties. These are the most important betting sports for us, and 4Sight is now present there. We see strong client adaptation reflected also in our trading numbers. That is what we can say to it. Connecting this now with the Micro Markets and with other products like emBET is the clear strategy in this sector.
But foresight is, uh, a stimulation product. What it should do is it should drive traffic into the live padding and we see it was, um, a lot automatic study that. Um, this is excellent. So it's working very, very well, strong conversion, strong drives into life betting, that is the purpose of the product. Um, so user engagement, we rolled out the product. Now, in basketball, we will roll it out for Major League Baseball very soon. Um, we developed it for soccer, like we highlighted. Um, and of course, we rolled it out over. Roll out, tennis properties. So these are the most important betting spots for us, and foresight is now present. Here, we see strong client adaptation reflected also in our trading numbers. So that's what we
And say to it, connecting this now with the micro market and with other products, like embed is the clear strategy in this second.
Analyst: Great. Then just as a follow-up, you talked a lot about the opportunity to drive take rate through attached rates of higher margin products and services. I am curious, though, how you think about the opportunity for like-for-like pricing power in products and services offered from here and just how you think about that algorithm between the two.
Great. And then just as a a follow-up um you you talked a lot about the opportunity to drive take rate through attach rates of higher margin, products and services. I'm curious though how you think about the opportunity for like for like pricing power in products and services offered um, from here and and just how you think about that algorithm between the 2,
Craig Felenstein: Yeah, I think when you look at the pricing algorithm that we have, you have to look at it really versus domestic, or I should say the U.S. versus international. In the international market, the majority of our contracts are fixed fee, aside from our Managed Trading Services contracts. With those contracts, we have natural escalators built into those contracts. Every time those contracts come up, which is an average of three years or so, we look to renegotiate it. We do have some pricing power depending on the value that we have added to our clients. We have seen them want to collaborate with us and continue to take more products, but also be willing to pay higher prices if we are delivering real value. You do see the same thing here in the U.S.
Craig Felenstein: In the U.S., where the contracts are predominantly variable contracts, we obviously grow with our clients as they grow. If we continue to deliver value through our products and those contracts come up, we have the ability to negotiate higher prices. The good thing for us is with some of our larger clients, those contracts actually run for a significant period of time here moving forward. When we look to kind of elaborate and expand those contracts, we are talking about more products and services and more value that we can add to those customers. So it has been a good relationship both domestically and internationally.
Yeah, I think when you look at at the pricing algorithm that we have been, you have to look at it really versus uh, domestic or I should say the US versus International. You know, the international market, the majority of our uh contracts are fixed fee aside from our MTS contracts. And with those contracts, we have natural escalators built into those contracts and every time those contracts come up, which is an average of 3 years or so, we look to renegotiate it and we do have some pricing power, depending on the value that we've added to our clients. And and we've seen them want to collaborate with us and continue to take more products but also be willing to pay higher prices if we're delivering real value. And you do see the same thing here in the US in the US where the the contracts are predominantly variable contracts. We obviously grow with our clients as they grow, but if we continue to deliver value through our products and we come up in those contracts, come up, we have the ability to negotiate higher prices. The good thing for us is with some of our larger clients, those contracts actually run for uh significant period of time here moving forward. And when we
Look to kind of elaborate and expand those contracts. We're talking about more products and services, and more value that we can add to those customers. So it's been a, it's been a good relationship, both domestically and internationally.
Analyst: Great. Thanks so much. Operator, we have time for one more question.
Great. Thanks so much operating.
Operator. We have time for 1 more question.
Operator: Thank you. Our last question comes from the line of Jason Bazner of Citi. Your line is now open.
Thank you. Our last question comes from the line of Jason Basnet of...
City, your line is now open.
Analyst: Thanks. You guys obviously have a lot of vectors that are helping your top line, the GGR growth, upselling, meaning a deeper content portfolio, cross-selling, and then moving up the value chain like MTS. Just in simple terms, if you looked at what contributed to your growth over the last few years relative to what you think will unfold over the next few years, do you see a big shift in the underlying drivers of your growth in those four buckets, GGR growth, upsell, cross-sell, and moving up the value chain?
Thanks. Um, you guys obviously have a lot of vectors that are helping your Top Line, the ggr growth upselling, meaning a deeper content, portfolio cross-selling and then moving up the value chain like MTS.
um, just in simple terms if you looked at what contributed to your growth,
Over the last few years relative to what you think will unfold over the next few years. Do you see a big shift?
In the underlying drivers of your growth. In those 4 buckets, ggr growth upsell crosselle and moving up the value chain.
Carsten Koerl: No. We see that we have a strong growing global market, on average roughly around 10% over the whole world. We see us in a pretty strong position because we have the biggest distribution. We are connected to 600 to 900 players in the sports betting gaming space and to more than 2,000 media companies. We do not see any change here. Our situation is that we believe with the breadth and depth of our content portfolio and the products, we can outperform the underlying market growth. We see nice opportunities looking now into a directional connection with media and sport and sports betting. We develop a platform for this. We think that this is something which will generate some significant uplift opportunities, connection with iGaming we mentioned and discussed here.
No, we see that. We have a strong, growing global market.
In average roughly around about 10% over the whole world. And we see us in a pretty strong position because we have the biggest distribution. We are connected to 6, on the play, to 900 players in the sports, betting gaming space and to more than 2,000 media companies. So we don't see any change here. And our situation is that we believe with the breadth and depth of our content portfolio, and the products we can now perform the underlying Market.
Carsten Koerl: The take rates and the cross-selling and upselling is something which we demonstrated, for example, very successfully with the trading services. If you put AI around it and every company in the world needs to care about this, every technology business, then you have a winning proposition. We feel pretty strong around those four growth pillars in the strategy.
We see nice opportunities um looking now into a directional connection with media and Sport and sports betting and we develop platform for this. So we think that this is something which will generate some significant uplift opportunities connection with our gaming, we mentioned and discussed here. And the take rates and to cross-selling and upselling is something which we demonstrated for example, very successful with the trading services.
Analyst: That's great. Thank you.
And if you put AI around it, and every company in the world needs to care about this—every technology business—then you have a winning proposition. So we feel pretty strong around those four cross pillars in the strategy.
That's great. Thank you.
Analyst: Great. We want to thank everyone for joining us for our second quarter earnings call. I will turn it back over to the operator.
Operator: This concludes the question and answer session. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.
Great. We want to thank everyone for joining us for our second quarter earnings call. I'll turn it back over to the operator.
This concludes the question and answer session. Thank you for your participation. In today's conference, this does conclude the program. You may now disconnect