{"id":1143,"date":"2024-05-18T01:12:27","date_gmt":"2024-05-17T22:12:27","guid":{"rendered":"https:\/\/xxbet-company.com\/sportradar-could-see-draftkings-like-resurgence-says-fund-manager\/"},"modified":"2024-05-18T01:12:27","modified_gmt":"2024-05-17T22:12:27","slug":"sportradar-could-see-draftkings-like-resurgence-says-fund-manager","status":"publish","type":"post","link":"https:\/\/xxbet-company.com\/es\/sportradar-could-see-draftkings-like-resurgence-says-fund-manager\/","title":{"rendered":"Sportradar Could See DraftKings-Like Resurgence, Says Fund Manager"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_34 counter-flat ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Tabla de contenidos<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1'><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/xxbet-company.com\/es\/sportradar-could-see-draftkings-like-resurgence-says-fund-manager\/#Maybe_Some_Merit_in_DraftKingsSportradar_Comp\" title=\"Maybe Some Merit in DraftKings\/Sportradar Comp\">Maybe Some Merit in DraftKings\/Sportradar Comp<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/xxbet-company.com\/es\/sportradar-could-see-draftkings-like-resurgence-says-fund-manager\/#Sportradar_Can_Handle_League_Fees\" title=\"Sportradar Can Handle League Fees\">Sportradar Can Handle League Fees<\/a><\/li><\/ul><\/nav><\/div>\n<p>On the back of a strong first-quarter earnings report, Sportradar (NASDAQ: SRAD) surged on Wednesday. Prior to that, shares of the sports betting data provider did a lot of nothing for an extended period of time. One professional money manager believes the stock\u2019s best days are ahead.<\/p>\n<figure aria-describedby=\"caption-attachment-219069\" data-style=\"width: 858px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-219069 size-post-thumbnail-858xAUTO\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/Sportradar-858x572.jpg\" alt=\"Sportradar\" width=\"858\" height=\"572\" srcset=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/Sportradar-858x572.jpg 858w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/Sportradar-430x287.jpg 430w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/Sportradar-302x200.jpg 302w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/Sportradar-238x158.jpg 238w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/Sportradar-194x128.jpg 194w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/Sportradar.jpg 1500w\" sizes=\"(max-width: 858px) 100vw, 858px\" title=\"\"><figcaption class=\"text-description\">Sportradar participating in a gaming expo. A professional money manager is bullish on the stock. (Image: <em>Front Office Sports<\/em>)<\/figcaption><\/figure>\n<p>In <a href=\"https:\/\/x.com\/RadnorCapital\/status\/1790828266829267381\" rel=\"nofollow\" target=\"_blank\">an extensive Wednesday post on X<\/a> (formerly Twitter), Radnor Capital \u2014 the pseudonym for a fund manager that wants to remain anonymous \u2014 said current sentiment on Sportradar stock could be similar to what was seen with DraftKings (NASDAQ: DKNG) a couple of years ago. That being a sound business model\u00a0 attached to shares that don\u2019t reflect fundamental strength.<\/p>\n<blockquote class=\"main-blockquote\">\n<p>My best guess (again, I\u2019ve been wrong) is that sentiment around this stock mimics what Draft Kings was a couple years ago \u2013 people thought Draft Kings was a decent business but would never be a good stock because they would never get leverage on their massive customer acquisition costs. Draft Kings is up ~4x since that narrative was popular,\u201d noted Radnor.<\/p>\n<\/blockquote>\n<p>Radnor also owns shares of DraftKings. In terms of share price performance, it\u2019s been a rough go for Sportradar <a href=\"https:\/\/www.casino.org\/news\/sportradar-filed-for-a-highly-anticipated-ipo-on-tuesday\/\" rel=\"nofollow noopener\" target=\"_blank\">since its September 2021<\/a> initial public offering (IPO). The stock\u2019s final print for that month was $21.83. It closed at $10.60 yesterday.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Maybe_Some_Merit_in_DraftKingsSportradar_Comp\"><\/span>Maybe Some Merit in DraftKings\/Sportradar Comp<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Sportradar and rival Genius Sports (NYSE: GENI) aren\u2019t on the consumer-facing side of the sports wagering of industry. Rather, these companies pay sports league for data rights and sell that data to gaming companies such as BetMGM, DraftKings, and FanDuel, among others.<\/p>\n<div class=\"callout\">\n<p>That makes Sportradar and Genius \u201cpicks and shovels\u201d players. Due to the business model, Genius and Sportradar are tied to the <a href=\"https:\/\/www.casino.org\/news\/fanduel-sportradar-unveil-new-nba-data-sharing-agreement\/\" rel=\"nofollow noopener\" target=\"_blank\">growth of regulated sports betting<\/a>, but they\u2019re not as consumer spending-dependent as are traditional sportsbook operators. Still, the technology provided by these companies is essential in powering profit generators, such as live betting and same-game parlays (SGPs), for sportsbook operators.<\/p>\n<\/div>\n<p>Despite those favorable points, Radnor Capital observed that Sportradar has endured a \u201cmechanical\/ technical overhang\u201d caused by a lack of liquidity in the shares and a small amount of institutional investors controlling more than 60% of the float. <strong>The fund manager noted other professional investors looking to express bullish views on sports betting have opted for cleaner stories like DraftKings rather than dealing with the complexities of Sportradar. Those preferences don\u2019t diminish the data providers alluring long-term potential<\/strong>.<\/p>\n<p>\u201cBull case math for Sport Radar suggests 2026 revenue could be ~$1.5 billion-1.6 billion (vs. street ~$1.3 billion-$1.4 billion) and almost $400 million earnings before interest, taxes, depreciation, and amortization (EBITDA) (vs. street ~$300 million),\u201d added Radnor. \u201cI get there using a ~20% revenue compound annual growth rate (which we have visibility into given the contracted nature of their business) and a ~25% EBITDA margin (low end of their 25-30% long term target). So even if we don\u2019t get multiple expansion (which I find hard to believe, given the upside to numbers), the stock should theoretically compound with earnings growth >20%.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Sportradar_Can_Handle_League_Fees\"><\/span>Sportradar Can Handle League Fees<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Sportradar and Genius find themselves in interesting positions. They\u2019re in the middle of content providers (sports leagues) and consumers, which are accessed via sportsbooks. As such, some analysts have expressed concern that the data providers could be forced <a href=\"https:\/\/www.casino.org\/news\/genius-sports-nfl-extended-data-accord-stock-soars\/\" rel=\"nofollow noopener\" target=\"_blank\">to overpay for league data<\/a> and be vulnerable to not making up those expenditures through increased revenue with gaming clients.<\/p>\n<p>Radnor noted that while rights costs tied to Sportradar\u2019s relationships with the NBA and the ATP (tennis) increased, the company\u2019s EBITDA margins remained flat, indicating the company was able to absorb the most costly part of those agreements without significant financial stress.<\/p>\n<p><strong>\u201cThese sports rights costs are straight line amortized over the life of the investment, so the costs will remain flat for the existing contracts, while the betting volumes grow, and more value-add products \/ services are offered to the sports books,\u201d said the money manager. \u201cAlso means that year 1 of these almost 10 year contracts will be the least profitable. This will prove meaningfully accretive to margins, which should approach ~25% by 2026 (street ~22%) and ~30% longer term, from ~18% today.\u201d<\/strong><\/p>\n<p>The post <a href=\"https:\/\/www.casino.org\/news\/sportradar-could-see-draftkings-like-resurgence-says-investor\/\" rel=\"nofollow noopener\" target=\"_blank\">Sportradar Could See DraftKings-Like Resurgence, Says Fund Manager<\/a> appeared first on <a href=\"https:\/\/www.casino.org\/news\" rel=\"nofollow noopener\" target=\"_blank\">Casino.org<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>On the back of a strong first-quarter earnings report, Sportradar (NASDAQ: SRAD) surged on Wednesday. Prior to that, shares of the sports betting data provider did a lot of nothing for an extended period of time. One professional money manager believes the stock\u2019s best days are ahead. Sportradar participating in a gaming expo. A professional <a href=\"https:\/\/xxbet-company.com\/es\/sportradar-could-see-draftkings-like-resurgence-says-fund-manager\/\" class=\"more-link\">&#8230;<\/a><\/p>","protected":false},"author":1,"featured_media":1144,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/xxbet-company.com\/es\/wp-json\/wp\/v2\/posts\/1143"}],"collection":[{"href":"https:\/\/xxbet-company.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/xxbet-company.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/es\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/es\/wp-json\/wp\/v2\/comments?post=1143"}],"version-history":[{"count":0,"href":"https:\/\/xxbet-company.com\/es\/wp-json\/wp\/v2\/posts\/1143\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/es\/wp-json\/wp\/v2\/media\/1144"}],"wp:attachment":[{"href":"https:\/\/xxbet-company.com\/es\/wp-json\/wp\/v2\/media?parent=1143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/xxbet-company.com\/es\/wp-json\/wp\/v2\/categories?post=1143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/xxbet-company.com\/es\/wp-json\/wp\/v2\/tags?post=1143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}