Sportradar stock surged following strong earnings and acquisition

Shares of Sportradar, a company that provides sports data and technology, rose by 10% this week. This increase followed the company's fourth-quarter earnings report, which showed strong growth in revenue and cash flow. Revenue grew by 26%, and cash from operations increased by 36% compared to 2024. A major factor driving this surge was Sportradar's announcement of a notable acquisition. The company will acquire IMG Arena from Endeavor for $225 million. IMG Arena is well-known for its sports betting rights, covering major events like three tennis majors and leagues such as the PGA Tour and the UFC. Sportradar serves a large part of the sports betting industry, partnering with over 400 sports leagues and 800 betting operators. They provide real-time data and statistics, which help make betting smoother for users. With the addition of IMG Arena’s assets, Sportradar expects to boost its revenue even more. Management has set a goal for at least 15% sales growth in 2025, not including the benefits from the new acquisition. This positive outlook makes Sportradar an attractive option for investors looking to tap into the growing sports betting market.