Sports company XLMedia collects minimal funds, just $1M, despite Sportradar's impressive financial standing.
In a significant move, XLMedia sold its assets to Sportradar in November 2024, marking a new chapter for both companies. While XLMedia is undergoing a gradual wind-down process, Sportradar is thriving, posting impressive financial results.
Sportradar AG, a leading provider of sports data and technology solutions, reported revenue of EUR 1.1 billion ($1.2 billion) for the year, marking a 26% increase compared to 2023. The company's business strategy, centred on leveraging technology and exclusive sports data rights to fuel growth in the global sports betting market, has been instrumental in this growth.
Key elements of Sportradar's strategy include expanding product offerings, leveraging AI and innovative technology, strong customer retention and cross-selling capabilities, operational discipline, and strategic acquisitions. Notable acquisitions include rights to the Bundesliga and the FIFA Club World Cup, which have enhanced their immersive products with player markets, streaming (4Sight), and AI-powered fraud detection.
These strategies have contributed to significant revenue growth. Q2 2025 revenues reached €318 million, up 14% year-over-year, with a 12% rise in Betting Technology & Solutions and 22% growth in Sports Content, Technology & Services. Sportradar also raised its full-year 2025 guidance to at least €1.278 billion in revenue and €284 million in Adjusted EBITDA, signalling strong operating leverage and profitability improvements.
Despite increased financing costs and an income tax benefit of EUR 11 million ($12 million), XLMedia's net profit remained relatively stable at EUR 34 million ($37 million) in 2024. However, the stark contrast between XLMedia's current situation and Sportradar's booming business underscores the impact of varying business strategies.
The initial agreement between XLMedia and Sportradar included a potential earnout of up to $10 million, with XLMedia already receiving a performance-related earnout of $1 million. The latest earnout, however, is only $1 million of the potential $10 million, leaving a potential earnout of up to $5 million. XLMedia aims to obtain this remaining earnout, which is contingent upon the financial performance of the assets it sold to Sportradar.
As for Sportradar, its focus remains on expanding its business, with strategic acquisitions planned or underway, such as IMG Arena, to broaden capabilities and deepen market value, positioning Sportradar for longer-term growth. Analysts affirm Sportradar’s robust business model and market position, projecting consistent revenue growth, improved margins, and long-term margin health due to rationalized competition for sports rights.
In summary, Sportradar's business strategy of combining exclusive sports data rights, innovation in AI-driven products, broad sales execution, operational efficiency, and strategic acquisitions has directly driven its impressive financial growth and optimistic outlook in 2024 and 2025. Meanwhile, XLMedia continues its wind-down process, aiming to return value to shareholders and complete the process in a reputable and dignified way.
Sportradar's impressive financial results, surpassing €1.1 billion ($1.2 billion) in revenue, demonstrate the success of their business strategy in investing in technology and sports data rights for growth in the global sports betting market. Meanwhile, XLMedia, despite stable net profit, faces a contrasting business situation, aiming to obtain additional earnings from the assets they sold to Sportradar through their performance.
