Good morning and welcome, everyone. Great to see everyone here. We also want to welcome everyone who's joining us via the webcast. I'm Jim Bombassei, the Head of Investor Relations and Corporate Finance. We've got a great agenda for you today. You'll hear from a number of our senior leaders about the significant opportunity that lies ahead for Sportradar. You'll also hear from some of our key leads, partners, and clients, including NBA Commissioner Adam Silver, NHL Commissioner Gary Bettman, DraftKings CEO Jason Robins, and Kaizen Gaming CEO George Daskalakis. From a format perspective, after the presentations, we'll have a Q&A session, so we ask that you hold your questions until then. The entire program will run about three hours, and we'll have a break about midway through. Following the Q&A, we'll have lunch in the room next door, so we hope you can join us for that.
Before we get started, a little bit of housekeeping. We will disclose non-IFRS financial measures and operating metrics today, and you can find the definitions and reconciliations in the Investor Day presentation located on our website. We will also make forward-looking statements that involve risk and uncertainties, which are subject to our disclosures and our SEC filings. With that, we're going to play a video, and then I'll turn it over to Carsten Koerl.
Think sport, think technology, think data. This is Sportradar. We are the driving force behind any data and any aggregation in sport.
Driving the transformation of the sports, media, and technology ecosystem, Sportradar is the global leader in sports technology. With operations spanning more than 100 countries, we deliver real-time data and insights at unparalleled scale. Our proprietary AI-driven solutions power everything from in-game analytics to immersive fan experiences, setting new industry standards. We empower leagues, sportsbooks, media, and technology companies around the world with real-time insights that enhance engagement, inform decision-making, and unlock new value.
Sportradar is the biggest sports technology company in the world. No one else has the scale, the data, or the innovation they bring to the game. I've worked with Carsten for several years and seen how he and Sportradar are shaping the future of sports.
Our unrivaled depth and scale of sports coverage, powered by advanced AI, computer vision, and proprietary innovations, redefines how sport is experienced through hyper-personalization and deeper fan engagement. By continually pushing the boundaries of innovation, we are shaping the future of sports with personalized experiences that connect fans to the action like never before. Sportradar defined the modern sports technology landscape for over 20 years, and we've been innovating and leading the industry, and we're still only at the beginning of our journey.
Wow, what a video. Twenty years, and I hear the best is to come. I can only underline this. Welcome from my side, ladies and gentlemen. Welcome to the commissioners, Gary and Adam. It's a pleasure to have you here. Today, I have the pleasure to guide you through the journey of Sportradar, which is, of course, also my journey. First, we are touching on what we build it, then we go to the strategy, and after that, I give you some numbers, and of course, then in aggregate, what we want to transport to you. Looking now to this slide, it tells me we did an enormous power engine. We cover more than 1 million matches a year live. We have more than 85 sports. Nothing without people. People is the most important one.
The five speakers, my colleagues, which I have here, they are representative for our people. The culture, the mindset, and the will to perform, that makes the difference for us. People are making this business. And then the clients and the distribution. We have 800 sports betting clients. We have 900 media clients. We have 400 leagues and teams in there. Nobody has that depth and breadth of coverage. This is our power engine. Then simplicity, how do we get this alive? We start with this power engine, with this content. Then we listen to our clients. Today, George is here. We will have also a talk with Jason. Listening to the clients is the most important. Understanding how to create value in a B2B business, that helps us to really be progressive.
At the end, monetization and expansion and innovation comes automatically if you listen to the clients. That's a journey over 20 years. Let me take a while on this slide. It started in 2001. I invested, I think at this time, EUR 200,000 with two Norwegian founders. We said the problem which we want to solve is a problem that the market was intransparent. We are extracting prices from the market, and we are looking to make the difference transparent. We are alerting our clients. That was the first need. The second need was very simple: starting times and names of teams and leagues. If you have to do this in 50 different languages, you can do mistakes. We did a system to detect those spelling mistakes, to detect the mistakes in the languages, and to detect the mistakes in the starting time.
That was all pre-match coverage. Today, I want to give you some of the turning points. I think every entrepreneur has things which he or she needs to decide right. I focus here on the data and the coverage. That had been the turning points for us on the journey to do the things right. Pre-match drove us into four or five years, and then we detected there's something else. It's sport. It's emotion. It's live. We need to cover live events. We begin to do this with a journalist network. Nowadays, we have more than 20,000 going to the stadiums, extracting this information. Later on, like you will hear from my colleague Beshad, we use computer vision already for more than 50% of the matches. Thanks to the partnerships with sport, what we have, we can deploy this.
The starting point was in 2008, and live is driving some of our most successful products: live odds, the probabilities, the trading services. The last one which I want to touch today is in 2014, when we said, how nice would that be if we get data from our clients and if with this data we can provide a better service for them. That was the start of managed trading services. We said, give us your betting tickets. We can aggregate those tickets. We see every second in which country, who is betting on which match and which outcome. We match this together with the deep data which we have thanks to the partnership with our sport, and we create a high-speed trading system. We control the latency, and we control the liquidity. That's a perfect storm. It started in 2014, and we see continuous success.
The more data which we get into this engine, the better we can do this. That's very simple. We believe that was, for us, from a data perspective, very important. From pre-match to live and then going into a platform model. The other interesting aspect on this slide is, as you might see, the dark blue color. This is something which shows us the revenues which we aggregated. At the start, it was EUR 500,000 in the first year, but it was EUR 500,000. We got payment from three clients for this. Now, in the last year, like reported in the quarterlies, it was EUR 1.1 billion. I would call this already a hockey stick. Gary might say it's not a perfect hockey stick, but there are times to come, Gary. There are some more years to make that curve steeper. That's what we see. It is driven by data.
It's driven by AI. It's driven by innovation, which Beshad will tell you. The more data you get and can ingest, the more we can create value for our clients with innovation. I don't want to bore you too much with this because my colleague Dalraj will go into the details of our segments. We have two: betting technology and sport content. It all starts with content, the deep content. Process this, put this into products which are creating value for our clients. In the betting sector, it's live data and odds, which is very important for us. Streaming is very complementary because it's stimulating live action. The betting services, I told you, the platform idea which is behind it, the risk management. For the media business, it's similar.
We are starting with the data and the deep coverage there, and we put it into tickers, trackers, solutions, scoreboards, articles. Nowadays, we automatize this. You will hear me later on speaking, I hope today I speak Chinese and Spanish with my avatar. You will see what you can do by feeding data in there, by using technology. Marketing services was very natural for us. Marketing services is something every sportsbook needs: punters, players which are there, and the media companies, they have this. We did a product with programmatic advertising where we believe we are the best in the world, in the world of sport, to convert this from the media into the betting space. Nothing without integrity. The two commissioners here, that was our first meetings which we had around integrity. If we open up for sports betting, it doesn't work without integrity.
If we do not monitor that those matches are played fair, sport is that, and sports betting will not work. That goes to the heart from everybody who loves sports. Integrity is very important. What you see here is our clients, the variety. For me, it means that is a perfect opportunity to learn from the best. Let's pick Betano because George from Carsten is here. We know each other now far too long, more than 20 years. I learn from you daily. I learn how can we optimize it because you are in touch with the end user, and you are now operating in close to 20 countries. I heard it is 18 countries, and you want to do 26. I can learn more from you. Together, we can develop. We created a virtual stadium. We have chatbots which are automatizing the action there.
We do this in 50 different languages. These are things which you only can learn from the client to create value. The same goes for media business. I was at the All-Stars in San Francisco and had the pleasure to listen there to the big guys from tech on panel. They got a question saying, what do you think in three years, what is the media product for sport? The answer from all of them was, it is hyper-personalization, and it is a product for Gen Alpha. A lot of different information processed, very simple in an interactive interface. I'm telling this since years. We have the data and the material for this.
I will introduce you in my later slides a platform which we developed that media companies can perfectly hook up with the fan data, with the liquidity data, but also, of course, with the deep sport data to make that vision come true. The sport bodies, that's something which is really going to the core of Sportradar. Sport and the emotion there, that is what is driving all of us. Helping sport to monetize, helping sport to improve analytics, player performance, helping with the integrity, this is something which we all love to do. It belongs together. Nothing without measurement. Whatever we do, we're going to need to measure ROI. If we don't measure ROI, you will call me in the next quarterlies and say, hey, Carsten, that's very nice what you're doing, but from a monetization, it doesn't look good. We measure this.
The programmatic advertising gives a 40% reduction in the acquisition. We can measure this. That's a strong testament. Looking to our Alpha Odds in trading, we measure this. A 13% or 11% in this sample, Alpha is 13%, 11% uplift for MTS. It's a strong testament that those algorithms in trading, they are working, and they are delivering more money in the pocket of our clients. That's good for us because the business model has a revenue share. The better we do, the better the client is doing, the better we do. Looking now to measurements for protecting sport, we detected 1,108 potential manipulated matches last year. In all the sports which we monitor, and remember, it's more than 1 million sports, 1 million matches which we monitor. The number is not too high. From this 1,108, 104, they lead it to a prosecution.
It was either a ban of a trainer, of a player, and whatever sport is doing about this. We are very happy that we could help with those kind of things. We are very happy that sport is actively listening to those things that we can support. Looking now to another element, that's where we are specifically proud of. We do in college baseball and basketball, we have a platform where we aggregate more than 100 million video clips. I'm told by the trainers of those colleges, it is a resource for them to do player performance management, to educate young players, but it's for them also very good for the drafts. I came to the idea, if we do this consistent for more sports, that looks like an interesting piece which we can expand. This is a direct help for sport and measurable.
Comparing us now to our peers, nobody is even close to the number of events, streams, and bets which we process. We are by far the biggest player in this market. Looking to the product portfolio, we have the widest range. Why? It's client centricity. We are listening to the clients, and we are saying, how can we help you to make more money? That is what you see here with the scale and breadth of the product portfolio. If you do this right for 20 years, the brand awareness and the reliability comes by itself. That is measured by independent service. That is not us. These are the clients telling about us. That is a very strong testament of the work which we did, and it diversifies us from the rest. If I'm asked about, Carsten, the entrance barriers, what is really the thing which is sticking most?
What is making it difficult for competitors? I always came to the point when I'm speaking to our clients, they are telling me, we can integrate probably two providers every year, third-party providers. This is a direct integration into the backend of high-speed trading systems. This thing must run. It must be 100% stable. It must match to their infrastructure in the background. Only two integrations per year is something where you have to deliver the content which the client needs. You have to build the trust and the relationship that they give you the trust that you are directly interacting with their core source of revenue. Of course, you have to have the technology that this is working, and this is highly scalable and resilient. Once this is done, commercialization comes automatically.
That is really something which locks us deeply in with the industry, and it's very difficult to replicate this. I would say somebody needs to do a massive effort to come to this level. We are developing. We are continuing to develop. It's tough to follow us on this one. Lately, we did the acquisition of IMG Arena, and I want to at least touch it because I got a lot of questions around this. First, this deal is delivering on the numbers. It is margin accretive from the first moment, cash and EBITDA. Of course, it is uplifting our top-line revenues. Our CFO will give you later on all the details about this. The deal is, from a number perspective, very good for us. From a content perspective, and that was important for us, this fits very well.
Our top three sports is soccer, tennis, and basketball. They are the best sport for live betting. The portfolio of IMG has a strength in this. 70% of this volume comes from those three sports. That was exciting for us when we looked into it and saying, you know, we have the engine. Remember, we have this powerhouse. It's the best in the world. We have the widest range of products, much more than IMG had. We can take this into our engine. We can scale it. We have synergies. We have a much bigger distribution, and we have the sports which are fitting perfectly to our portfolio. Let's take tennis. You know 4Sight as a product with the overlays. You see it here on the screens. We only need to put in the raw material from the grand slams. We have products.
We have the data distribution, and we have much more clients. That deal made for us a lot of sense. It is subject for antitrust, so that will take another five to six months. That's our speculation before this deal is closing. Later on, Greg will go into more details. Now, coming to the strategy, I can tell you a lot of things why these 20 years have been good, but the strategy is where this all comes together. It is here four points. I will explain to you the market. Tendency-wise, worldwide, more markets are opening up than markets closing. That's a general observation. 10% is the tailwind, so that's the worldwide growth rate. We touch on this a little bit later. Many people are not looking to our product cycle.
I want to do this today with you because when you start a product 20 years ago, it goes then into a mature stage. It will not grow much more. We have much more products which are still in this growth cycle. They are very important to drive the revenue and to drive the profitability. I will give you some samples on how do we improve the take rate. The in-play in the U.S. is something where we want to demonstrate this to you. Touching on adjacent markets, iGaming is something which is super exciting for us. At last, I want to give you a glimpse in the future on the platform which I spoke before about. Looking now to the world, APAC and Middle East is the biggest market measured by GGR, gross gaming revenue.
There are massive countries in, like China, for example, where we have the Chinese state lottery as a client, but as it says, it's a monopoly there. We have not a market like here in the U.S. For us, from an addressable size, we like more regulated markets instead of having these monopolistic market structures. There are huge opportunities in APAC. If we are looking now to Japan, that is something which is exciting. I was in Tokyo last year. I will go this year again. It is something where I believe baseball and soccer is essential for Japan, and I think there is a nice opportunity there. I think there is a nice opportunity in India. It's 1.4 billion people living there. It's driven by cricket. That is also something where we are looking to.
We see in APAC and Middle East a lot of runway from new markets coming up. Looking to North America, you see that dark blue bar. That is an interesting thing because it gives us a lot of runway into the future to grab some market share. We are here. Two commissions are here. We have three of the big four leagues in our portfolio. 70% of the volume in the US sport is in our portfolio. We think we are perfectly placed to capture that growth opportunity in the United States better than anybody else. Looking to LatAm, Brazil is obviously the big topic. George will later on speak about Brazil. He's the number one there. This is a market which is very vibrant where a lot of activities. We build it in office. We have the properties. Now we begin to learn from it.
There is a nice iGaming aspect, but still a lot of runway. If you take all this together, we believe the 10% CAGR in the global market is something where we see good signs that more markets might open up in the future. That will be even more supportive and give us more tailwind. If we are looking to the product, you remember when I told you about the pre-match 20 years ago. This is now in a mature stage, but these products are still existing. The clients are using the monitoring. The clients are using these pre-match services. If we look into the live, these are products which are really our core. This is the live odds, the probabilities which are going on there, and they are still in a growth stage.
The trading services where we use the platform, we ingest the data from our client to provide them value. That's in a steep growth phase. Why do I tell you all this? Because of the numbers. If you look from an IPO perspective to where we are now, 37% CAGR growth with managed betting services and marketing services. Remember, this is the platform. It scales much more. It's more profitable. The mix is important for us. Of course, we need to do our homework right, and we did this. Streaming and live odds, that's services which are still in the growth phase. You see, when this comes together, you have the results which we achieved there. I hope it gives you a bit of a glimpse of how much runway we have with the products because they are still growing, and the market is growing.
If we're looking now to live, we did a small survey asking our clients how much here in the U.S. of their business is live. It very much depends on the sport. Fast-moving sports like hockey and basketball, they have naturally more live betting than more slower sports. The number is 33%. That's the average what we got. If we are looking now to market sources, in this case, JPM study, they're saying it's close to 50% in 2029. We see no reason why that should not continue. Listening to our clients internationally, the proportion is more 70%-80% live betting. For 2029, it's close to 50%. What it means from a financial perspective, every percentage point from 33% into the direction of 50% is, given the run rate from 2029, $6 million per year for us top-line revenue.
This top-line revenue falls through because there is literally no cost. There might be a little cost in cloud services involved in there, some payments which we have to do, but it's literally pure profit. What do we do? Everything what we want is stimulation of live betting. More live matches where we can do the overlay, which we can broadcast or stream here in the U.S., very helpful. Tools like virtual tickets which we developed together with our partners, very helpful to stimulate these activities, giving overlays, all with the idea every percentage point converting helps us so much more from a monetary session. Brazil, we touched it, and the story here for us has developed over the last four years.
We started that we noticed on our marketing services, we have a remarkable number of casinos which are saying your programmatic advertising with sport works very well for us. We can convert casino clients by using sport as the advertising. Eighty-four casino brands are using this now from us. That is highly interesting. Let's look to the market. It's a $10 billion market, and the SAM is $2 billion. It is a competitive market. What we said here is we test this in some smaller European countries. We have the full range of iGaming products. We have the crash games. We have our virtual sport games. We have the slots. We have the casino. We have the live dealers. We have a full portfolio now to explore this.
The idea in Brazil is we start with the acquisition with sport, with our marketing services. Once the client is acquired for our end users, then we give them all the data which we have up to a full platform in sports betting. Here, we begin to analyze the user stack. We have a bonus engine. We have a channel switching. We have a churn management in there. We switch it over into the gaming space. In between, we have the entertainment tools which should do the retention and the stimulation. We call this a 360-degree service, and this makes us unique. This is where with the iGaming market, we see a good competitive edge. Marketing guys saying we have a right to play because of this. That is always important if you go into a new segment. Brazil is our starting point here.
The platform, I only want to give you the glimpse. It's connecting our sport books, media, federation, and regulators. These are our four markets with what is important. If I ask now a client, what is the most important for you? They say integration. We want to have an easy integration of all your products. We have a huge pipeline that is directly cash for us. I said to the technical team, please have a look on this. Make the integration easy. The same way goes the opposite way around. Ingestion of data and information into this platform must be as easy and streamlined as possible. Then put a protocol on it that everybody can put his own applications on this. That is what we developed. We are very thrilled and excited about this.
We do this step by step, but the integration is anyhow something which we have to do. Nothing without AI. We are super happy that Beshad, who is speaking later on, joined us. Beshad was with Google. He looked on the pictures outside there. I said to Brendan and said, I think it's better that I'm now in Sportradar. I'm very happy that we could convince him. He did really products like Google Lens, and he came with a core team to us. Top performers helping us to make more progress. That is for the platform super important, but it's also for all our developments very important. That all has accumulated in the numbers. I don't want to go into the details because Greg will do all the details. We give you at least a 15% CAGR growth for the next three years.
That goes $1.1 billion-$1.7 billion. We give you 700 basis points from a margin. That goes from a 20%-27% margin. I leave the rest for Greg that he gives you the details how that might look in the further future. I give you 700 basis points from a free cash flow, same like the margin escalation. We believe that for the next three years, that's something which we will solidly deliver. We believe that we have some space to do better. I hope I showed you where this is the case. All these numbers are, of course, without the IMG Arena acquisition. My key takeaways is from a size, from a scale, from a depth of breadth of the product, we are undisputed leader in that segment. We are deeply embedded with the industry.
It is something where we worked 20 years on. We have some large growth opportunities to attack. We are set for success there, and we are razor-sharply focused on the execution. Thank you for listening to me. I would say now is the time that I can welcome the commissions on stage, and we have a little bit of chat.
Thank you, Carsten. That was great. I'm Eben Novy- Williams. I'm the Deputy Editor of SportReCo, and I'm excited to be on stage here with the three of you. We have 20 minutes, so I want to dive right in. Carsten, I want to kick it to you to start. As you just shared, data rights partnerships, huge part of your business. You're on stage here with two of your most visible, most important partners.
Thank you, Eben. That's the moment when everybody is getting nervous here. The two commissions on stage. You never know what they are saying and what we are commenting. I enjoy this. This is the free ride moment for me. I read through the script, but I know those guys are not following the script. For me, the most important one is I love sport. I really do. All our people do the same. I know that the two sitting here next to me, they are in the same way. We are passionate about what we are seeing. We are passionate to be part of this game. For me, this is the most exciting thing what I can do in the business. Sport is uniting us, connecting us. How can we develop sport together? Yes, we can do this very good in sports betting.
I'm so glad that my partners are listening to us and trying to help and support, but also trying to understand from us how can we do the things. If I have to summarize it, this is for me the development which we had in the last 15 years sometimes. Twelve years with you, 15 years with you. This is a constant development of trying to do the best for sport by using technology, trying to develop revenue streams, helping athletes, but of course, also improving the financial position.
Adam, a number of your former owners, current owners, were early investors in Sportradar. What was your early connection with Carsten? Would love to hear what your initial impressions were of what Sportradar was building.
Sure. Thank you all for being here with us. That was a terrific presentation. I learned a lot, even more about Sportradar. I would say, you know, as Carsten's passionate about sport, I'm passionate about data. It is a good partnership. We met, I believe, in 2014.
A long time ago.
Yeah, not so long ago, but it was shortly after I had become commissioner. We were engaged in a public dialogue about the potential of legalized sports betting in the U.S. I think Carsten had read something I wrote and actually reached out to me and said we should meet because I was curious to better understand how sports betting was operated and regulated.
To be specific, he wrote an article in The New York Times.
That led to the regulation of sports betting in the United States. He was saying, "Carsten, I got so much critics on this thing. Do you think I'm doing the right thing?" I have to sharpen up a little bit because that was the situation.
That's fine. Thank you. It began, it was the initial building of the relationship that led to this partnership. Karsten had probably more experience at that point than anyone else in the world in understanding regulated betting markets, largely in Europe. I mean, at that time, that was when there was still a Supreme Court decision or a federal law in the books that was banning sports betting federally. That was overturned. What I was talking about back in 2014, I still think we could use it, was federal legislation that set standards for 50 states. We deal with a hodgepodge of regulations now. That was the beginning, and that's what led to this now very long-term partnership.
That was such a big moment, Adam. I feel like it changed the way that our entire industry talked about legal sports betting. Carsten, at that moment, when the NBA commissioner is saying maybe it's time to look at this, are you realizing, wow, that's maybe a huge boost for our business?
Look, I felt very honored that somebody like Adam asked me what I think about it. I said, this is the right move to get a big market opening up. It sounds very simple, but at this time, it was something where it was really from all aspects. Is it federal? Is it now state by state? Where is it going? There was a lot of headwind, I imagine, from some other sports, the ones which are played with a ball, with an egg. They did not like this.
I'll just say real quickly, just as part of your presentation, of course, you're building value in your company, and Gary and I are building value in our leagues, but integrity is part and parcel with building that value. You put up that chart about the number of incidents you detected, well over 1,000. I think you go back then. Part of why I thought it was so important, I mean, that even though it was technically illegal in the U.S., sports betting was widespread. You could go on Google. You could spend a week on the number of sites that had little flags of credit cards and things that was offshore where you could bet. I'm sure Gary could say the same thing.
The issue at that time was whether it was going to be illegal sports betting or legal sports betting, not whether or not there was going to be sports betting. If you're in our shoes and you have no ability to track what's happening, instant line movements, action moving towards one bet or another. As Carsten said, not every investigation necessarily means there's a problem, but that's where it all begins through the data that's provided by Sportradar.
Gary, it sounds like your partnership actually goes back even further than the NBA relationship. What did it look like originally? Obviously, this is before legal sports betting. How has it evolved over the years?
Actually, there was some sports betting in Vegas and Nevada. It started with integrity, understanding when things were happening in games that did not seem right. That is really where the relationship began. I go back, having done this for three decades at the NHL, the emergence and collection of data to think about the things that Carsten was talking about here 30, 20 years ago, you would have thought it was a fantasy, right? People were not envisioning collecting data and then what to do with it. When you see investor presentations like this, you can sometimes sit back and say, yeah, that sounds good. That sounds good. He is selling. I am sitting there saying every box he is referring to, we are checking as to the capabilities of Sportradar and what they bring to us in terms of operating the business, not just integrity.
Dealing with sports betting companies internationally, Sportradar, Carsten has been instrumental in bringing us commercial partnerships. They've streamed our games internationally. They do watch and bet. I mean, this is a full-service organization doing things that nobody envisioned 20 or 30 years ago. Really, Sportradar, Carsten has been at the forefront of enabling us to figure out how to evolve and take things to the next level, not just in betting and data, but how we're actually doing business.
Adam, I've heard you talk a lot about meeting fans where they are and how important that is now that everything is customized and there's so much digital competition. How is the work you're doing with Sportradar helping you guys reach new fans and maybe existing ones in different ways than maybe the league was 10 years ago?
Yeah, picking up on Gary's points, we're not in the sports betting business, the NHL and the NBA. We're in the engagement business. And even from our initial conversation with Carsten, I mean, for me, when I wrote that op-ed piece, this was about taking our data and the integrity around our data, making sure we were providing it to people in a uniform way in which they could trust it. But then ultimately, the greatest benefit for us is the engagement in return that people who want to bet, want to follow action that's happening on the floor, the in-play that Carsten was talking about, all the different permutations. At the end of the day, it's like a reason to watch and a reason potentially to watch longer.
As we saw in Carsten's presentation, sort of what we're now doing with Sportradar, I mean, at the end of the day, I'd reduce it all to storytelling to me. I do love the data, but I love it because you're able to tell stories with it and you're able to engage people. The media, as you know, uses it. They use it to create the graphics they put up. They use it in our broadcast to make offenses or defenses understandable to people through graphics. For us, what we're now doing with them with his thousands of clients is a lot of it isn't so much sports data qua sports data. It's data about what's happening on the floor and how that's translated into narratives directly to our fans. That's what I'm so the sports betting aspect is just part of it.
I mean, there's also a large universe of fans who have no interest in sports betting, but are fascinated. They want to learn. I mean, we've always talked about that in our broadcast. The best broadcast, people come away and they're able to tell their friends something that I learned something, just like reading a great story. They learn something from the game. It's those insights that sort of really make the broadcast sing, that make the sport that much, again, back to the word engaging, much, much more engaging for our fans.
Let me add on to that because Adam's 100% right. There are two things that come to mind. One, maybe it was seven years ago, just pre-COVID, Carsten had suggested that we get our top dozen executives at the NHL and at Sportradar, and we all sit in a room and figure out how it is we should integrate our operations, how we should do things together, and what could we do that we were not doing. It was across all of our disciplines. In terms of being involved in our businesses back and forth, that tells you what type of company they are. They are not there telling us what to do. Just give us the data and we will distribute it. They want to be part of the business.
In that regard, talking about gambling, they're constantly looking at our data from puck and player tracking and trying to figure out what are the new types of bets that could be created, what type of things fans would be interested in. Yet on top of that, away from gambling, they syndicate all of our data to media. I don't know. You must have thousands of outlets that you're distributing our data to in an orderly basis, going to Adam's point about helping the media tell stories about us and how we connect with our fans.
Good that you picked up on this. It was a hockey meeting in Palm Beach in the break. I first thought that's not a typical hockey location.
It's okay. It works.
Wait a minute.
They were Stanley Cup champions down the road.
I know, but not a typical hockey. I understand. This is so important, and I touched on this before, learning from the best. The team owners are the best. Even if sometimes they can be controversial and challenging, I think. I love this to be challenged. I know you like it too. Gary likes that too. Being challenged gets you into the new level. Listening to them, how they see the things and trying to give a little bit the aspect which we see, it all draws down to a better product. It's about fan engagement. It's about a global market which is there. It's about the modern world. We will see all those things and developments. Doing this together, that is helping sport in a global competition.
We're sitting here on two of the biggest properties. And there's a global competition for the digital sport fan. So developing these engagement tools driven by the data, I think this is essential to be successful.
Carsten, you had a slide up there earlier that mentioned AI. When you think about the way AI is going to change your business, is it back-end kind of data analysis? Is it front-facing? Is it in-product itself? How do you think about AI and data?
The impressive thing you will see front-facing. You will hear me speaking today Chinese and Spanish. Can you do this, Gary? Chinese? Spanish? I also can do French.
I'm still working on English.
If you do this for 50 different languages, it will transport a much stronger message. Front-end-wise, I think you will see direct applications. On the back-end, this is where really the magic happens. If we can use the data and the aggregation to get a percentage point higher in the profitability, that is enormous. You see it on all levels. The most obvious is the front-end.
I'll just add on the AI front. Back to the engagement point. People are surprised at this number, but the average bet in the US placed during an NBA game is $5. Again, back to this notion of engagement. While, again, we want people to bet responsibly, we like the fact that people engage in our sport that way. I think still, sort of if you look at the betting market, to me, it's still far too complex. I think most fans who aren't court bettors to understand what plus 150 means or minus 175 or whatever else. It's not simple to follow. I think that's where this is something we've talked a lot about, where AI can potentially make a big difference because you can net back to these narratives. You can bet a narrative in AI.
You can say, what I'm interested in is, will these two players on the Knicks each score 20 points? Will they then win the game by at least 7 points? Will they hold the other side? I mean, you can just describe it any way you want. Instant odds are created, and you can place a bet. You can move away from what to me seems like a somewhat Byzantine sort of history of the way this industry evolved. We have the data. We have the integrity that comes with it. I think it's fairly primitive on the front-end. It's still very traditional. I saw Jason is here later today. I'm sure he could speak to this.
I think there's a huge opportunity out there with a market, particularly as young people are becoming increasingly fascinated with sort of the data around the game to use the kind of data he has and then to take all these applications. Again, just make it much simpler. It may be at the end of the day, you don't even want to bet with it. Again, I think people's fascination, hardcore fans' interest in understanding what's really happening on the floor or the ice, and then the commentators and the journalists' ability to translate that using these tools to say, this is why three-point shooting is so attractive. This is why they were able to shut down this team. To better understand what you're watching.
It really transcends the betting. It's about personalization of the experience and how you want to connect to our sports on your terms. Even there's a focus now. We have a player running for a record that nobody ever thought could be broken.
I hadn't heard about that.
Do you show up every game now with five games to five points to give?
No, no, we went to this. This happened.
Wayne Gretzky and I were having the debate. I said, with five to go, we should start. He said, no. We'll do it at four. We have a traveling roadshow.
He can tell you the answer to that.
Yeah. No, no.
I think it should be two points. There is betting on whether or not Ovechkin is going to break the record before the end of the season. There is betting on how many goals he is going to get on any given night. Also, in terms of the coverage, any statistic you want relative to how he might do this and in terms of what we are going to be doing with OVCAM as we get down. We are starting with four to go because I do not think he has ever scored four goals a year. You could tell.
He's going to score five tonight.
Actually, to make my life very easy, I'll get criticized for having missed the event. At the end of the day, it's giving fans who are interested and it's generating a lot of attention the ability to focus on this on their terms.
Gary, you guys hit a home run or scored a goal, I guess, is the right analogy here. The Four Nations Face-Off this year, I think, really highlighted how much demand there is for hockey and your league outside of American borders. The work with Sportradar, obviously, is not just an American partnership. It's global. How has that helped you guys overseas in terms of reaching new audiences?
I had alluded to it before. Internationally, they have been the platform for our over-the-top streaming of games. The commercial relationships that we have around the world, you've been responsible for helping us develop. This is a way, particularly because in places like Northern Europe, the amount of betting on hockey, it doesn't look like it does in North America. It's a really much bigger deal. Giving us an international presence, giving us an international platform that we probably couldn't have done ourselves. If we even tried, we couldn't have done it as well as Sportradar has been doing it for us. It's not just the United States. It's Canada as well. You broke a story yesterday that I would have preferred to hold for another 48 hours, but kudos.
Kudos to them.
No. Somebody in my orbit leaked a memo. You did a little bit of a disservice for it because you report it in US dollars, which deals with the fluctuation of the dollar. We can get into the tariffs and all that. More importantly, it is a Canadian deal in Canadian dollars for Canadian rights.
It's a higher number in Canadian dollars.
Yeah. I want the higher number. Exactly. No, no. No, because the interesting thing is you're comparing this deal to the old deal, but that's not really fair because the Canadian dollar was at a different level then. But enough about that.
We can talk about that.
We can talk about that later. At the end of the day, this is all about connecting with fans on their terms, in their language, in their country, giving them the content that they want how they want it. Nobody does it better for us right now worldwide than Sportradar.
Adam, both of your leagues are doing a lot of player tracking in the puck on players, camera vision. How has that unlocked a new opportunity for you guys to, again, talk to fans, do different things with what they want to consume?
You know, a few things. Pass on. I think we covered the sports betting aspect. The optical tracking we're now doing with our players, and it's 29 body parts of every player. It allows, again, back to the storytelling, it's what allows for those seemingly instantaneous animations of what you're seeing on the floor. Again, the ability to explain to fans, provide those narratives, provide really interesting graphics. I just add to Gary's point that so much of what we're seeing now in streaming right now in the U.S., I think a lot of us just think of taking a game that was more on traditional broadcast or cable moving to streaming. What streaming, and then with the technology that Sportradar provides, is this ultimate personalization of these games.
Whether it is in Canada or whether it is in the United States, these are vast fan bases that have very divergent interests in what they want to follow at any given time. What his technology allows you to do is that if you want to track Ovechkin, great, at any point in the season, or you might not be interested in that. If you want to bet or you want to have nothing to do with betting, if you are particularly fascinated in our league, players that went to a certain college or from a certain hometown, or you want to better understand how it is not the three-point shot, but how they create the opportunity for the three-point shot. That, to me, is what is so most exciting about this personalization that we are seeing now.
Adam's point about being able to track what's going on on the court, the field, or the ice, it's becoming increasingly sophisticated. It's increasingly reliable. For us, it's even more of a game changer because of the speed of the game. Because somebody who's trying to get introduced to hockey sometimes has trouble following what's going on. Using the data, using the ability to look at what's actually going on, what the players are doing, seeing all their body motion, that's actually been a major breakthrough for us and critical for our growth.
Carsten, I want to give you the last word here. Unfortunately, we're running out of time.
I had so much fun. I could listen for hours on this. Look up. I just tried to get that into the direction. I'm pushing both of them and saying, hey, computer vision, deep data, we can process this more or less in real time. That is 300 milliseconds, something. We can visualize the whole match. The opportunities are enormous. When we have discussions, there is a commercial background on this. There is a huge media TV broadcasting coverage, and there is a delay of more than 20 seconds on it. My wish would be, if we're doing this for the sport, try to make the sport in the future more engaging, more real time, more enriched with data. That's what I know the two are supporting so much. In this framework, there is so much space for innovating.
If I'm looking back to our video clip, it says the best is to come, absolutely. There is a lot of things. The beauty here in the U.S., and that's where all the sports is and for the people, it's very tech savvy. It's very much we want to innovate. We want to do new. I'm totally sure the developments are coming here from the United States. That's the reason why we put a main focus with the partnerships on it.
The sports fan in me is excited to see where these go. Gary, Adam, Carsten, thank you guys very much.
Thank you very much. Thank you very much.
My name is Dalraj Bahia, and today I'm going to talk about why, from a product perspective, Sportradar will continue to deliver durable revenue growth. To do so, I'll first walk you through our content strategy, which provides the foundation for our modular product suite. I'll then talk about expansion through our clients' value chains and how that drives take rate to propel our growth story. Before finishing on how we approach innovation, building upon the network effects of our proprietary data and content and showcasing that with a few different examples of how we're delivering growth. Earlier, Carsten referred to how our product suite is built upon our market-leading pools of data and the network effects thereof, which is a key competitive advantage for Sportradar. Of these three pools, it's event data that is the foundation of the business and starting point for our value chains.
I'll now go through a quick deep dive on our content strategy for this foundational data pool. Our clients and fans are the number one driver of our content strategy. Any content we invest in has to have strong demand from sports fans and therefore our clients. We're constantly optimizing mix whilst also being laser-focused on ROI to maximize value out of our existing content. From a portfolio perspective, we minimize dependencies and phase renewal cycles to mitigate concentration risk. These principles form our content strategy to ensure that not only do we drive long-term revenue growth, but we do so whilst expanding margin. That content strategy then manifests itself in our balanced portfolio approach, sport by sport. This is an analogy to showcase that from a portfolio construction standpoint. Of course, this is simplified. You don't see 85 sports here.
The principle holds that we have our attack-based sports and leagues that drive client decision-making at a portfolio level and are often the focus of our innovation efforts from a content perspective. We have our midfield sports, proven, strong content that often fill regional niches like cricket in India. Finally, no team is complete without its defense, our high-volume timetable fillers to ensure that clients have a 24/7 offering. Our strategy and principled approach then leads us to where we are today, with an unrivaled, globally diversified portfolio to best support our product suite and drive profitable revenue growth. We have strong stability and visibility into this cost profile, which Craig will cover in more detail. With regards to portfolio construction as a whole, we are extremely disciplined and therefore only add new content if it is financially accretive to do so.
That is precisely why we're thrilled about our recently announced IMG ARENA deal. It fits our strategy perfectly with a significant amount of strategic global rights that will bolster the portfolio even further. It will be plug and play operationally, allowing us to unlock the full economic potential of those assets overnight. The data and content we've just discussed then serves as the fuel for our product suite. I'll now walk you through how we use our products to service our clients' value chains end to end, unlocking powerful upsell and cross-sell opportunities for Sportradar, thereby driving take rate. As Carsten mentioned, we have been the pioneer of the industry, and that timeline of innovation brings us to our product suite today with the broadest and deepest range in the industry, offering clients a best-in-class one-stop-shop proposition, building upon existing integrations to grow and expand.
As betting technology and solutions drives over 80% of our revenue profile, I'll focus my examples today on that client segment. Rather than go into detail here, I'll instead explain what I mean by broadest and deepest. Broadest and deepest means the ability to service clients across the sports ecosystem, regardless of where they are on their outsourcing journey. To bring that to life, let's go into each of the segments shown here and the client value chains for each. Within the betting segment, breadth and depth means being able to service an operator's value chain end to end, all the way from providing pre-match fixtures and start times, like Carsten said, through to providing operators with a turnkey platform solution, in addition to ancillary services such as streaming. The beauty of this is that each product builds on one another.
Managed Trading Services, or MTS, is powered by odds. Odds is powered by data, etc. This not only creates an incredible internal feedback loop to drive effective product development, but the critical point here is that there's a natural upsell journey up the curve. We prove our best-in-class capability to clients and then are uniquely positioned to deliver incremental value over time, building upon those existing integrations, creating a significant opportunity as clients outsource more and more of their value chain to Sportradar. This outsourcing value chain expansion is a critical element of our growth story. The exact same principle can be applied to the other two client segments.
For media, digital, and broadcast, again, our products range from pre-match offerings such as game reports used by broadcasters to live event data to power real-time insights and broadcast graphics, all the way through to visualizations and OTT solutions to enhance storytelling and engagement. Again, products built on that rich data upstream, for example, leveraging player tracking data for virtual shot charts, as recently showcased by NBC. As with betting, each product builds on one another, an incredible incubator for innovation, creating natural value chain expansion with clients as time goes on. Finally, same concept for sporting bodies and teams. Here, we go even further upstream, providing data collection and competition management capabilities to leagues. We also provide industry-leading integrity services, which is critical to protect sport from bad actors, all the way through to really exciting things we're doing on the player and team performance front.
For example, working with NBA and MLB teams, directly utilizing our technology and insights to improve their scouting and coaching. Now that we've spoken about the respective client value chains and the importance of expansion for our growth story, let me come back to betting to explain a really important concept and differentiator for Sportradar. Modularity lies at the heart of Sportradar's success. At a high level, we offer a range of products, which in itself is a differentiator, as no other peer has that capability end to end across the value chain. Within each product offering, we offer complete flexibility to meet clients' requirements with regards to individual product features and the content to which it applies. In this example, as we go to upsell a client to MTS, they may only want our player risk profiling to begin with or our Alpha Odds.
Or put differently, it may well be an individual feature innovation that we've pioneered that provides the catalyst to start that upsell journey. Not only that, but our offering is also content agnostic. This often plays out. Hey, large client X, we know you consider yourselves experts in trading the NHL. You go ahead, but let us take over the long tail. Let us prove we can trade it more efficiently, and then we expand from there. This is a crucial and unique enabler for ongoing value chain expansion, allowing us to continue to break into and upsell larger, more complex clients over time. We get our foot in the door with individual pieces of content and/or certain product features, get the heavy lifting integration work done at the outset, thereby lowering the barriers, lowering the friction. We prove ourselves, and then we drive that upsell opportunity home.
This is a tried and tested land and expand strategy for Sportradar, which we're still in the early innings of. What that therefore means is that wherever a client is on their outsourcing journey, whatever their needs are, Sportradar has the solution. For example, a large single-brand operator like Client B only taking a quarter of their portfolio with odds. We gradually upsell more of their portfolio from data to odds over time, and then in a few years, watch how they'll start taking individual MTS features, expanding and moving to the right. When it comes to ancillary services, clients can pick and choose within our streaming portfolio or to what extent they outsource their digital marketing to us. Significant cross-sell opportunities still ahead of us here, which Ed will talk more about shortly.
In summary, Sportradar always has the solution, and our unique modular offering is a critical enabler of value chain expansion to higher value-add products and services. In doing so, we drive take rate. As we expand with clients and provide more products, features, and content, Sportradar grows its share of the pie. Here is the so what of all of that and why value chain expansion is so important for our growth story. GGR mix within our core betting value chain has evolved over time, and we show a simplified illustrative example of this within the table here. Historically, our distribution of GGR was more pre-match orientated, 60% being pre-match, let's say. Live was mostly live data and live odds, with a bit of GGR through MTS, which would have been more nascent at the time and mostly done in-house by clients.
If you fast forward to today, the pre-matched in-play shift is still ongoing, and we've innovated our product set to upsell clients to odds, MTS, and platform solutions, thanks to the modularity of our offering and product innovation, which I'll discuss shortly. As we help to drive the transition to in-play and continue to upsell clients to higher value-add, higher take rate products for the same amount of total GGR, i.e., before accounting for any market growth, Sportradar, in this illustrative example, doubles its revenue profile. The product mix effect on growth is substantial, and this is why we will continue to outpace the market as we drive ongoing value chain expansion, exploiting our unparalleled distribution. There is still tremendous opportunity ahead of us to support that value chain expansion long term with product and feature innovation.
Innovation for us is always hand in hand with clients to directly address their needs of today and tomorrow. We have a disciplined, ROI-driven approach where we continually evaluate innovation paths, working in an iterative manner with our clients and often also federation partners too, as you heard from Adam and Gary, to ensure we deliver end fan and therefore real client value. George, CEO of Kaizen, will give some great examples of this later, such as our joint approach in bringing Virtual Stadium to market. One of the reasons why our innovation approach is so successful is because our product development cycle leverages the network effects of our data pools, generating rich proprietary insights.
By harnessing the gold mine of data created by and flowing through our products, we can build even better, more sophisticated solutions for our clients, fueling a virtuous cycle with significant untapped potential still ahead of us. Let me now walk you through some big picture examples of such innovation to bring this concept to life, starting with betting data. Here we have MTS, one of our key growth drivers, simplified on a page. At the highest level, MTS manages risk on behalf of operators. A very simple example of that would be the acceptance, rejection, or reoffering of bets, delivering real-time decision-making around whether to take on additional liability and risk across billions of transactions a year. In reality, MTS is made up of a series of complex modules that operators can choose in any combination according to their needs.
Many of those modules are listed here, and in the interest of time, I'll only highlight one, Alpha Odds. Alpha is a series of highly sophisticated AI-driven algorithms to optimize trading margin. For example, one Alpha model utilizes all the betting data and liquidity available to us to provide real-time bespoke odds to each client based upon their own individual pool of liability. Ultimately, as Carsten said earlier, Alpha has achieved over 11% uplift in trading margin for our clients. This is just one of many proven value-add examples of feature innovation that, when combined together with the modularity of our offering, will continue to be a critical driver of success for MTS, breaking into large operators over time, getting our foothold with a particular innovative module you see here or a particular piece of content, and then expanding from there, land and expand.
The success of MTS can then be seen here, reaching $35 billion of turnover in 2024, with globally diversified liquidity, meaning trading margin is well insulated from sports results volatility. You'll see plotted at the bottom there some of the innovations that have been launched over time, helping to power that growth, power ongoing value chain expansion and new client wins. Most recently, our launch of third-party risk management is one that we're really excited about, enabling us to risk-manage content from other providers. We're seeing strong demand from clients here already, especially large operators, which is a testament to how good our MTS solution is as it becomes more and more akin to an agnostic software layer across the industry. Moving on now to an example of innovation led by fan data, marketing services.
At its core, marketing services offers personalized digital advertising solutions to drive fan acquisition and retention. Ultimately, the value creation here arises from our incredible treasure trove of fan data, often contextualized with event and/or betting data, depending on the client segment, to provide a bespoke, anonymized view, fan by fan, on their behavior, their propensity to transact, thereby enabling more efficient investment in fan acquisition and retention. This is across the channels shown here, and it's all underpinned by our proprietary scalable marketing technology stack, purposely built in-house, independent of third-party services, thereby giving us full control over our innovation and value creation journey.
You can see here the incredible growth journey that marketing services has been on over the past few years, powered by that feature innovation, reaching $53 billion of ad impressions in 2024, growing our share of wallet of marketing spend, which, as Carsten mentioned earlier, is a significant opportunity for us. Ultimately, proof is in the pudding. On average, we achieve a 40% reduction in cost per acquisition for our clients, as was mentioned earlier, proven outperformance. Looking forward, we're approaching an exciting phase of growth as we continue to address more adjacencies.
Finally, as we look to the future, aside of how GenAI can help drive further innovation potential, which Beshad will cover in more detail, we see a few key themes and trends in front of us, whether that be immersive betting with products like Foresight Augmented Streaming, helping to drive the transition to in-play, or social engagement with bet sharing, enhancing fan retention and activity, all of which help us further drive take rate by adding incremental value to our clients. Now let's take a look at a few of these products in action. This third quarter, both teams, I think, have found higher quality opportunities. The Knicks, in particular, have looked to attack in the paint far more than they shot through the threes in the other two quarters involving. There's another example, Monica. Towns red hot. Towns has a missed shot here in the third quarter.
Whilst this showcase was focused on basketball for consistency of the fan journey, of course, our products are scalable and built for other sports and leagues too. What you've just seen isn't just a set of cool, eye-catching innovations. They're real value drivers for our clients, as you can see here, demonstrating our ability to successfully productize deep data and AV into high-value-add solutions, enhancing the fan experience, driving acquisition and retention, and ultimately, the most important thing of all, making our clients more successful, because if they win, we win. To wrap up, Sportradar has a disciplined, ROI-focused approach to content in order to drive profitable revenue growth.
We have the broadest and deepest product suite servicing our clients' value chains end to end, with product modularity a critical enabler for value chain expansion, especially with large clients, thereby allowing us to drive take rate, providing a substantial growth multiplier to continue to outpace the market. We're continuing to innovate hand in hand with clients, productizing the network effects of our pools of data to drive further value chain expansion, the transition to in-play, and take rate growth. With that, I'll hand over to Ed to take us through our global reach and proven go-to-market structure. Thank you.
Thank you, Dalraj. Good morning. I'm Eduard Blonk. I'm the Chief Commercial Officer here at Sportradar. Carsten already explained how skill is vital for the success of this company.
I will discuss how we leverage that skill from a commercial perspective to drive revenue growth and also profitability. It all starts with our client-centric approach and our ability to meet the unique needs of each of our clients. As Carsten and also Dalraj both showed earlier, our foundation is really strong. I will talk about how our commercial organization is built to scale, both in approach and also how our go-to-market is set up. As you know, we have strong business momentum, which is reflected in our incredibly low churn rate. It's about 2%. In our extremely solid net retention rate of 127%. The client churn rate, by the way, is primarily driven by businesses ceasing operations or consolidating rather than leaving Sportradar for a competitor.
Since our IPO in 2021, we have almost tripled the number of clients with a $10 million and more annual spend with this company. When we capture clients, we grow alongside with them. Dalraj referenced our value chain, and we've been consistently moving our clients up that value chain, both through their organic growth and from our cross-selling and upselling. Our commercial model is geared not just to meet the needs of our largest, most strategic clients. We have a client segmentation model that meets the needs of clients of all sizes, and our sales team is tailored accordingly. We have a proven sales playbook to sell and serve clients within each of those segments, from inside sales to strategic accounts, right from the start. When we onboard a client, whatever their size, they have everything to fit from Sportradar.
For strategic clients, we are very focused on aligning our solutions with their evolving strategies. We have strong partnerships with them, which is reflected in the average tenure of these client relationships. We offer enterprise and emerging clients flexible solutions that allow upgrades for scalable adoption. For the inside accounts, we have a low-touch self-service model that is highly efficient. As I will discuss, the number of clients within each of these segments is not static. We are constantly helping them, helping the next generation of enterprise strategic clients to build their businesses. Beneath our strong reported revenue numbers, you see outsized growth in both our strategic and enterprise segments. Across our top tier of clients, this translates into a 40% per client revenue increase since the IPO. As I mentioned a moment ago, our segmentation is not static. Clients are generally segmented by revenue.
While we are selling more content and product to our largest clients, we are also acquiring and incubating more large clients. As an example, in the last three years, we have migrated 91 clients from our inside sales tier, which is mostly self-service, to the higher tiers. Annual revenue from these clients grew by nearly nine times in that time period. When our clients grow, we grow with them. Fundamental in our client-centric approach is our ability to bundle product, content, and price to meet the needs of our clients while maximizing the opportunity for both the client and Sportradar. How we price is very important. It's a very important component of our commercial playbook. We give ourselves the goal to meet the diverse needs of our clients. You have heard Dalraj talk about modularity of content and product. Here's how we apply this commercially.
On the one hand, we have a fixed revenue model, which is primarily applied to sports media, betting content, and products outside of the US. The exception here is MTS, which is always variable. Each of these pricing models has its benefits. The fixed model provides predictable revenues for us and predictable costs for our clients. The variable model allows us to grow with our clients and the market and has a low entry cost, which is important for new markets and new market entrants. Which model we offer to our clients really depends on the specific circumstances. We are also able to combine elements of that fixed and variable model to meet the needs of our clients to maximize their profitability. What underpins both models is our strong value-based pricing and smart bundling of products and content.
Here's a simplified example using some notional figures to explain our fixed model, focusing on pricing rather than client growth or client acquisition. The key variables are the number of products and the amount and value of content a client takes. Premium offerings, like for example, NBA content, are priced higher. Bundling with complementary content like European basketball and complementary products like live match trackers for visualization also impacts that price. The fixed model provides revenue visibility, protecting us from short-term market shifts while allowing upside through annual price escalators. We also grow with our client's success. Expanding into new markets and using more content will increase our revenue. The variable model is influenced by market growth, client market share, and our take rate. Again, this slide draws on conceptual numbers that are not drawn from our results.
You can see that the quantity of products and the amount and value of content a client takes determines that take rate. Higher value content in key regions increases our earnings. This model allows us to benefit from external growth factors like in-play betting growth, market expansion, while guaranteeing minimum revenues that will provide us downside protection. Both the variable and fixed models are flexible and client-centric. Through value-based pricing and smart bundling, we help clients grow, driving our own revenue and their revenues. Here you can see how strong that growth in revenue from each of our pricing models looks like. Fixed revenues have grown at a 22% CAGR since our IPO. Variable revenues have increased at a much faster pace, at 34% CAGR. This is driven by the opening of the US market and global growth of MTS.
Both fixed and variable pricing models provide good revenue visibility, as both are usually attached to multi-year deals. For example, here in the U.S., we have the major players signed up until 2031. We already have around $2 billion of revenue booked under contract for this and next year. This does not factor in the upside of the variable contracts and other growth drivers. Let's explore a little bit more of what the future holds and how that translates in durable growth for us. Our commercial organization is focused on three growth areas that we believe will continue to drive growth for the years to come. First, we will continue to drive product adoption within our client base. There is a good deal of white space there to attack. Next, we have the largest pool of data and content in the industry.
We will continue to leverage that and drive that growth. Finally, we will continue to go where our clients go and grow alongside them in those new markets. This is our commercial playbook. It will continue to drive strong results. Let me go a little bit more in detail on those three priorities. We are really integral to our clients' operations, with a growing number of clients adopting three or more products since 2021. By understanding their needs, we deliver growth-generating solutions at attractive pricing, making us a trusted strategic partner to our clients. Despite this progress, significant growth still potentially remains. Among our strategic enterprise and emerging clients, 40% already uses more than three products. This still represents a significant opportunity for us for further growth with those clients.
Key opportunities include increasing adoption of streaming and betting engagement add-ons, marketing services, and managed trading services, where we have a 20% penetration today. Each additional product enhances client growth through stronger fan engagement, cost-effective customer acquisition, and optimized sportbook management. There is a big, big runway for more product adaptation with existing clients. As clients deepen their partnership with Sportradar, we both move up that value chain, unlocking further mutual growth. The number of products that the client uses has a significant impact on the revenue that they pay us, on average, and drives incremental content consumption. There is a very, very strong multiplier effect here. Of course, mostly our largest clients take six or more products, and they provide an outsized contribution to our overall revenue.
If you look at clients taking three products or less, and remember, they represent about 60% of our current client base, there's a huge opportunity there. Product adoption is clearly a growth driver for both the clients and for us. Here's how it works in practice. This is a real-world example of an Australian bookmaker that became an MTS client back in 2019. As this client grew, growth that was enabled by our products and content, they took an increasing number of products from us during those years, expanding from MTS to marketing services, streaming, betting entertainment, and retention service products. Revenue from this client has grown by seven times since we first partnered with them. Actually, most importantly, this client has grown to become one of the world's largest online casinos and sport betting sites, that through the partnership with us.
It's about delivering more and better products and services to complement their existing activity and stimulate their growth. When products are the engine for growth for both our clients and Sportradar, then content is the fuel. As Dalraj explained, once a product is built, it can be repurposed across multiple fronts. The same applies to our content. If a client takes a product, we can offer multiple content packages to fuel their growth and engage their customers with the sports that they love. By cross-selling products, we unlock opportunities to upsell more content, supported by smart bundling that enhances the client value and customer engagement. New sport rights further expand these opportunities, adding fuel for existing and new products. Our targeted value-based pricing and bundling strategies ensure that clients get the right content at the right price.
Niche content can be introduced at accessible rates, while premium content commands premium pricing. This approach is applied across our fixed and variable pricing models. Since our IPO, live data, live odds, and MTS uptake has grown with about 60%, and streaming content uptake has grown with about 40%. We are providing more of the content our clients want, driving growth for them, us, but also our sports partners. We have covered how we grow with our new and existing clients, moving them up the value chain, rolling out new and better products, and upsell more content. The market, however, also offers us various other organic growth opportunities as regulation opens up new markets. Our extensive experience in entering new markets and our global skill give us a competitive edge, making us the leader in market expansion and helping clients grow.
We closely monitor market dynamics and build out our capabilities ahead of regulation. We build with boots on the ground so that we can build those relationships and better understand the market and optimize that for our product and content go-to-market strategy. As I discussed, we are able to determine the optimal price, product, and content bundle to help our clients grow into these new markets and that we grow alongside with them. I think you're all familiar here with Sportradar's success here in the US. Back in 2018, the US GGR was around $300 million. Last year, it hit around $14 billion. We have been at the forefront of that market expansion. Through the official partnerships we have with NBA, MLB, and NHL, we cover approximately 70% of the GGR of the major sport leagues here in the US.
Partnerships are instrumental for our regional and also our global revenues. Brazil, so let's have a look at Brazil. In Brazil, as in other markets, new markets that are opening up, that speed to market will again be the key to commercial expansion and our success. We already have existing relationships there. Important partnerships like the one we have with CBF, which is the Brazilian Soccer Federation, give us a huge advantage in what is a soccer-crazy country. We go into these new markets with high confidence, applying our playbook of the most attractive global and local content portfolio, best products to fit, and the right pricing model for that particular market. It is working. Brazil opened its market for sportbook operators on New Year's Day this year.
Already in the first quarter alone, of the 80 licensed operators, there are 50 Sportradar clients now, with 35 of them actually outsourcing their complete risk management and trading to Sportradar. This reflects the astonishing speed with which we can build footprints in new markets. It underlines the coming opportunity we have to deploy our playbook for further expansion. As you can see, it's a very, very exciting time for Sportradar, which brings me on to my conclusion on how I would like to summarize our commercial approach. We are the undisputed market leader because we make sure we are fit for every market we operate in, either established or new. That's because our unparalleled skill permits us to have a local presence anywhere in the world where that is needed. We have a winning client-centric playbook that we run to deliver durable revenues.
Client-centricity lets us build deep collaborative relationships with our clients and partners, aligning their commercial strategy with our own commercial strategy. We are laser-focused on enhancing their value proposition, addressing their challenges, and helping them expand revenue streams. This is what drives adoption of our products and content, enabling us to cross-sell, upsell, and with that, move clients up that value chain. All of this is repeatable. We build leadership positions in existing and new and adjacent markets. This is how we will continue to extend and expand our position as a leading sports technology company in the world, continue to grow revenues per client, drive durable growth for Sportradar for the years to come.
Thank you. We'll have a 10-minute break. After the break, you will hear from two of our leading clients, DraftKings and Kaizen. Thank you.
Take a moment right here, feeling like it's out here, driving towards the sun with a rose and a gun, feel the wind in my hair, going nowhere, I swear, lighting up along the run, dangerous, but it's so fun, running, running, oh, hold on, don't let go, running, running, oh, keep on, yeah. Running, oh, keep running, I'm running, oh, keep running, lighting up along the run, dangerous, but it's so fun, oh, running, oh, keep running, I'm running, oh, keep running, lighting up along the run, dangerous, but it's so fun, oh, running, running, dangerous, dangerous, running, running, dangerous, dangerous.
Told my boss that I'm done, had no luck with my mom, say, "What will you do with your life?" You know it's hard to survive, a cigar in my mouth, maybe guilty but proud, now I'm an outlaw on the run, dangerous, but it's so fun, running, running, oh, hold on, don't let go, running, running, oh, keep on, yeah. Running, oh, keep running, I'm running, oh, keep running, lighting up long the run, dangerous, but it's so fun, oh, running, oh, keep running, I'm running, oh, keep running, lighting up long the run, dangerous, but it's so fun, oh, running, running, dangerous, dangerous, running, running, dangerous, dangerous.
If everyone could start making their way back to their seats, we will be shortly commencing the second half. I had two last time and too much food. Jason, are you already—can you already hear me?
I can hear you.
Can you hear me and see me? There we go. I even see you, Jason.
I even see you. Thank you for joining this. I have George from Kaizen here. George. Hey, George. Yeah, George is waving. George told me he gets a bigger discount than you because you are not physically here, Jason. What do you think about this? I got to go. I'm sorry. Thank you for doing this. Look, for me, it's a great pleasure. It's entrepreneurs. And I admire the two of you. So what you created is incredible. The journey which you had, Jason, and I could share some of those pieces or we had it together, that is—congratulations. So what you established here and how hard you had been working on this idea, that's for me a stimulation, I have to say. Every time when I'm seeing this, you had so tough times.
You had been holding on, and you're hyper-successful, same as George. George told me he wanted to expand now into 26 countries. He's in 18. I said, "We're going to need to speak with Jason if he wants to go to the United States." Good. Same can be said for you, Carsten. You've had an amazing journey, and you've certainly accomplished a tremendous amount. So we're all just following in your footsteps. Thank you. Do you remember? We had that kind of format a couple of years ago. You still recall this?
Oh, yes. At Düsseldorf. I remember it well. That was, I think, the first time you and I met, and you interviewed me on stage, and you were quite nice to me. Hopefully, you'll be nice to me again today.
I will be. No worries about this.
We had a request from a big sport agency in Germany. That was in Düsseldorf.
Wow, you even remember this town. We had 3,000 people in the audience, a little bit more than here. Jason was the rock star. I had to interview Jason to tell the Germans how the American sports betting business and Daily Fantasy is working. I think we did that quite well. You got a lot of applause after this. That is the same format. Let's see if we get some applause, Jason, today.
It is 20 years or more for me, and it is for you 13 years or more right on creating DraftKings and making it as big as you are now.
If you look now to Sportradar and to this partnership for this kind of—yeah, it's more than a decade—how have we helped you to support the business and to develop your business?
We've been working with Sportradar since we were just a Daily Fantasy sports company over a decade ago. They've supported us as we entered the sports betting market following the 2018 overturn of PASPA. Initially, we integrated their pregame odds, eventually all the live data as well. Everything integrates very seamlessly, all of their services, and they've been a great partner. They've also continued to grow with us. As everybody here knows, I'm sure Carsten is a true entrepreneur, and he's always looking for ways to expand his business. That's been great because as the market has grown and as DraftKings has grown, Sportradar has been there right along with us.
Going a little bit away from the script because I know that you like this, but we're getting a bit off-road off the script. Of course. How important is for you personal relationships? You know me as an entrepreneur, whenever we are meeting, this is so insightful, I learn. I guess it's the same for you. How important is in those B2B partnerships, trust, relationship, price is always—it always plays a matter. How would you weight it of saying, is that something where you say, "Well, if the product is a little bit cheaper on this side, I go here or there"? Or is relationship and trust an important element?
Relationship, trust, I think, is essential in any partnership.
I think you being somebody that not only do I trust as a person, but also over the years to deliver high-quality services and products, I think, is very important too. When you and I first met, we talked a lot about the way that the US industry might develop. I always thought you were a long-term thinker. I think for us having partners that are not thinking about, "How do I grab dollars in the short term," but more, "How do I build an ecosystem and build relationships that last over a long time and true partnerships?" Those are the types of partnerships that always work the best. It always starts with trust and a great relationship. For me, same. I can tell you he was shouting at me several times when I tried to increase the prices.
He's always reminding me to trust relationship. Coming to the end, we will speak later on about technology. I should say greetings from both, from Gary and Adam, to you. I had them before on stage. Greetings to them. Looking into the future, where do you see corporation areas which are interesting for you? Is that computer vision? Is that AI? Where it's going? Is that iGaming space? Where do you see—that helps me that I can get my business developers to you tomorrow to look on this. What are the areas which you are seeing for DraftKings and where you think there might be some support from our side which can help you?
AI is a big focus area for us, both in terms of consumer-facing, but maybe more importantly, back office things that I think can dramatically increase efficiency and improve the customer experience. Definitely a lot there. Obviously, Sportradar continues to expand sport coverage. That's very important to us because for us, the major sports in the U.S. are where we concentrate. To be able to offer a full offering and have a lot of that powered by Sportradar for some of these niche sports, I think, is very important for us as well. There are a number of other areas as we sort of see consumer engagement shifting from more click to more request and receive ChatGPT style.
I think there'll be a number of other places where you can figure out more intelligent ways to push content and optimize the way that you're drawing up the customer experience. Certainly, there will be no shortage of areas for us to collaborate together in the future.
Fantastic. I saw some of my managers already taking notes. There is a good upselling opportunity, Jason. Beside all this, hey, thank you for joining us. It was great to have you with the video here. Thank you very much. I wish you a wonderful day. I hope I also have a wonderful day. You never know. I'm short before the Q&A. I would say thank you, Jason. Welcome on stage, George. Jason, thank you. Thank you.
Good. Nice to meet you. Long time, no see.
Long time. We met recently, right?
Yeah, yeah, yeah.
How many years ago have you heard first time about Carsten and Sportradar? I think you even had been sneaking into one of our monitoring tools illegally. As an agent, he's from Greece.
I'm not sure what you're talking about, really.
It's been a long time. 2001 was the first time I saw BetRadar back then. Yeah, I mean, the reason I'm here basically is that you are one of the few people that make me feel young in this industry. Thank you very much. Look, George did outstanding things. I know we are here in the U.S., but he is now present in 18 countries. He has. Nineteen. Nineteen. Sorry, as we speak. He has the fastest growing international business in the world, tier one operator, partner of all the major soccer federations, the biggest player in Brazil.
I found it very helpful to hear also from somebody outside what happens there and how do we cooperate. I'm very happy that you're here. I leave the stage now to you that you can tell us a little bit about this. Thank you, George.
Good morning, everybody. It's good to be here. It was interesting to learn a lot of things about Sportradar today after all these years and to also hear the commissioners. I have to be honest, Carsten. I'll tell you guys how this started. A couple of months ago, Carsten gave me a phone call. He said, "Hey, George, how are you doing? You're going to have an investor relations day in New York. I'll come and pick you up. We'll go there. We'll have a great time. Jason will be there." A good businessman has to be a good salesman.
He convinced me. How's it going? I flew with my wife. Jason zoomed in from Boston and says, "I'm on a three-day shopping spree." Where's the camera? Honey, if you watch this later, it was just a joke for the presentation. Yeah. Now, besides joking, I don't often attend events like this. We are a customer of Sportradar. I was thinking when I was flying 11 hours, don't forget that discount. Why am I going there? I have to say there's a few people in this industry that I respect as much as Carsten. Coming from the gambling industry, we don't believe in luck. To be successful for 25 years, it's not an easy field. It's very demanding. It has a lot of hard effort, a lot of ups and downs. To stay around, it's not easy.
Some people say it's easy to go to the top, and it's harder to stay there. It's very hard to get to the top, by the way. Especially when you get there to sustain that for 25 years, something's not due to luck. It's a lot of hard work, vision, and of course, a very good team, strong people. I have to congratulate you for that. I think now I've done enough for the discount. Having said that, let's talk a little bit about Kaizen. I'm sure you don't know much about us, so I'm going to briefly try to bring you up to speed with what we're doing. We are. We come from Athens, Greece. We launched a brand at home in 2012. In 2016, we started expanding with our brand, Betano. We're active in 19 markets today.
Outside the U.S., we're the second biggest operator out there, behind Bet365, but probably growing like three to four times faster than them. We're active a lot in Europe and South America, where we are the biggest operator. Especially in Brazil, as it was mentioned, the market went live regulated on January 1 with the market leader there. Obviously, the U.S. is an incredible market. I think one of the reasons Carsten wanted me here was to explain to everybody how important the rest of the world is too. It's a big world out there. For example, Brazil. Brazil on its own, I believe, is more than half the total U.S. online gambling market. It's just one country. I think also Sportradar makes the majority of its revenue outside the U.S.
Of course, it's a big, again, a big market and a lot of growth coming up in the U.S. As also Edward showed earlier, a lot of opportunities coming up in the rest of the world. We are very happy. Actually, we don't intend anytime soon to enter the U.S. We will continue entering markets in the rest of the world. In what you guys call soccer, we call football. We are probably the biggest partner of soccer organizations and clubs out there in the Premier League, UEFA, the World Cup with FIFA. The Brazilian league is called Brasileirao Betano. The Argentinian league is called Trofeo Betano. We are very active in partnerships with sporting bodies and clubs. By the way, something I relate to, Yannis, of course, he's a friend and a partner. He comes from Greece.
He's our brand ambassador all around the world, except from the US because we're not active here. Yeah. Twice in the last three years, we were awarded as Operator of the Year in the EGR Awards, which I believe are the most credible awards out there in our industry. Enough with the pitching for Kaizen. We're not getting listed. We're not raising money. Yeah. Now I want to talk honestly. I've never spoken about partners. Because usually what happens is you go somewhere, they ask you about your company. We are customers of yours, so why would you speak about a supplier? Got me thinking. Why? Why do we value the partnership with you guys so much over the last 13 years since we launched in Greece? I want to give you the customer's view, okay? How?
Because we all live from the customers, right? One of our values as a company is always start from the customer. I have experienced a lot in my 24 years in this industry, and especially the last 13. A lot of people say it. Of course, like you say, yeah, customer goes first. Do they really mean it? Do they really do it? I think with Sportradar, we do have that. They start with what we say truly is a collaborative approach, not a transactional mindset. I think also there has been a lot of respect from Carsten and his people on the ecosystem. You have to respect the ecosystem. You just cannot go out and think, "How am I going to make money?
Let's inflate prices and charge, move this cost to the operators." You have to make sure all parties in our ecosystem are happy and grow sustainably. Yeah, that's definitely number one for me. We've been very happy with that. Very close to that for a company like us. We operate in 19 markets. It's not just a 24/7 operation. It's also the time difference. We have like 9-10 hours between countries where we operate. Actually, we never sleep. It's very important when you have your main partners to know that when something goes wrong. In our industry, when something goes wrong, it's very bad for customer experience. It moves to customer support, and it creates havoc. You need to have people who are knowledgeable and are there 24/7 for whatever is needed. We have that with Sportradar.
Third of the four pillars for me, it's evolutionary innovation. That's very important. I think it's one of the reasons why you guys have managed to remain the leaders in your sector for all these years. From the early days, what Carsten mentioned was live odds. Actually, not even live odds. Pre-game odds back then. Later live odds. And data. Nowadays, to marketing services and fan engagement, everything has evolved a lot when it comes to our relation with Sportradar. I think Dalraj showed a very nice video earlier. I don't know where he is now. With the work that Sportradar has been doing on the NBA, we use that product, the virtual NBA games. It's like a video game. It has great appeal to younger generations. They really love watching a game like it's a video game. I think it creates further engagement.
Finally, what I appreciate a lot in this area is that we are included in development from the ground. It's different to go to a partner and say, "We have this for you." It's different to say, "Okay, what is your need? What is your challenge right now?" We can sit down together. Our teams, with the Sportradar teams, can develop stuff. An example is that we went a step further with a Virtual Stadium service. I don't have as impressive videos as the guys. In essence, what this is, is something we developed recently. It supports various visualization options, combining additional engaging solutions like livestream and live match strikers. Users can go in there. It's like a social media space. They can watch the game on the stream. They can watch the data on the match strikers. They can chat between them.
It is all moderated. It brings additional engagement to our players. Last but not least, as you've heard a couple of times now, we're in 19 markets, aiming to be in 26 by the end of next year. That is quite a challenge for us. We have a lot of partners. Going into new markets, there is compliance. This can be a nightmare. It is very demanding. Do not think you are in the States, you go to another state. You go to a different country with a different language, a different culture, different rules, different preferences, local specific needs that you have in different markets. In our industry, it is very rare. Actually, I cannot think of many others that have already a footprint there. We go to Brazil. It is our biggest market. We know Sportradar will deliver what we need. We might decide to go out.
I don't want to name markets now. It's going to be used to some other markets in the next couple of years. We know that with Sportradar, we can scale and expand and have somebody who has already blazed a trail in those countries. Briefly, you can see here a history of our cooperation. I think it's been a long ride, Carsten, 13 years. All I can say is that I hope we can continue that. Maybe have a similar discussion in 13 years from now. I believe Sportradar is a company with leadership vision, a great team, an industry that is growing. We hope that we'll keep growing for years to come. Of course, to remain relevant, which is the challenge, you need to evolve. I think talking about evolution, the best guy to talk about this today is Beshad. Thank you.
Beshad, please tell us all about the exciting stuff you are preparing. Thank you.
Thank you very much.
Thank you, George. Hi, everyone. My name is Beshad. I joined Sportradar less than a year ago. As it was mentioned, I was at Google before for 18 years. I have co-founded Google Assistant, Google Lens, and a few other products which millions of people use every day. Hopefully, you're the user of what I have done before. I also led generative AI for Google Cloud just before leaving Google. I get the question of the reasons why I joined Sportradar. On one hand, I'm a crazy sports fan. It's not a better place to be as a sports fan and tech sports fan. I think the main reason for me really was the potential that I was seeing at Sportradar thanks to the gold mine of data that the company has, which together with tech and AI can be unlocking lots of different potentials.
Sportradar has been a tech company always. It has been AI first for many years before I joined Sportradar. There are lots of opportunities. I am looking forward to be part of this journey. Now, 11 months in the job, more excited than day one. I was very excited on day one also, but even more excited. Today, I want to talk about three things. First, covering about how our tech is helping us to get most out of the data assets that everyone talked about. Then we talk about how we are evolving it to provide new growth opportunities ahead of us. Finally, we talk about the operational efficiency, which can be gained also thanks to the technology and AI. Everything starts with data. Everything starts with foundations that have been built over the years. This is a rock-solid foundation.
It's years of optimization, which has gone into this. It is very hard for anyone else to get to match it or will be very expensive to reach this level. We're managing to do all the demands that we have for data needs, from low latency to scalability to reliability, thanks to the rock-solid foundation that we have. This is a very future-proof infrastructure and architecture that the company has at this point. If tomorrow we want to have 10 times more the workload that we do today, we do not need to change our infra or architecture. Now, on top of this infrastructure and rock-solid foundation, we have our real-time technology. The real-time technology is really what gets most out of the data that we have. Carsten and my colleagues, everyone talked about how data is our competitive advantage.
In reality, it is data together with the real-time technology, which is making that data to become our competitive advantage. If you start on the right, it is in real time that we are collecting the data with our scout networks, with computer vision. It is also in real time that we're collecting betting data and fan engagement data. Again, in real time, we're processing all of this data. We're running our AI models on top of it. We're inserting that to our products. In real time, again, we deliver that data to our clients to bring value to them. Real-time collection, real-time processing, and real-time delivery. There is one thing in the middle here, which that's the reason I came to Sportradar. That's the gold mine. All the data which goes through this real-time processing, it's getting continuously stored.
In fact, from the beginning of the presentation we had today, we collected several millions of more points of data points in terms of sports data or fan engagement data, which is this is becoming the source of all of the learnings and trainings that we can do for the models that we're building. Talking about models, the real-time AI models that we're building are trying to target different types of value and outcomes that our customers need. Generally, of course, we're trying to increase the profit for our clients. This is we're matching numbers, which are unmatched. It's a very high quality. The reason is really thanks to the scale of the data that we talked about, but also about the diversity of the data that we have. Because when you do machine learning and training, it's not just the size of data. Size really matters.
In this case, it's also about the quality, the number of different sources that you're getting the data from. Again, that's something which Sportradar is quite unmatched in the industry from that aspect. To take one of these models, for example, Alpha, which my colleagues also talked about, in real time, we are collecting the events data, the betting data that is going through. For a particular bookmaker, based on their risk appetite and their reliability, we optimize the odds really continuously, real time. We're trying to adjust it in a way that their turnover and their profit is maximized. This is in-house built AI models. In that case, it's bringing more than 11% profit increase. There are other AI models. This is just a few more. There are many more, which is helping to, again, convert data into real-time value.
That's a short version of the story of how actually Sportradar is unlocking the power of the data that we have to make it growth for our clients, which obviously growth for our clients means growth for us. Now, let me talk about the second part of my presentation, which is about how we are evolving this to unlock more new growth opportunities. I talk about two things here. First, I cover about how we are lowering the technical barriers for our clients to grow. Because again, that fixing, that means our growth. Carsten and others also talked about integration is one of the biggest challenges in the industry. Sometimes, because of the more data, more data points, and more features, and more markets, these integrations can sometimes take months from the technical assessment and sales discussions to the technical delivery and deployment.
We have been working on building for a number of years our industry standard APIs, which is built in a very modularized way to help exactly that problem. Thanks to these APIs, we're getting the modularity and can support the land and expand strategy, which Dalraj explained. Basically, the way it works is that to take an example, we have something called Unified Odds API. What we do with that is that if you, as a client, come and integrate one sport and one tournament with Sportradar, and then later you need to cover another sport or another tournament, the extra amount of integration for you is zero. Zero extra cost, thanks to that API, which is a unified one.
Now what we're doing is, as a next step, we are evolving all of these standard APIs into an ecosystem, a platform, a marketplace, which is helping us to actually cover and help solving the integration problem for all of our products. In that sense, the integration can take hours instead of the weeks and months. Faster integration means faster time to revenue for us, means that our clients can integrate with different sets of data options and models that is available to them in a shorter amount of time. There is still an AI here on the slide, which is helping to actually recommend. The model is recommending to our customers what are the other data or models that you should be purchasing. We're targeting, again, our client growth. The client growth will be translating to our growth. That's about the clients.
There is a supplier side as well. By suppliers, of course, in such an approach, they will have easier access to our client network. Thanks to having access to the client network, they can grow. Again, we would grow in that sense. We believe that this is really trying to improve the overall innovation across the industry. It will grow the overall industry, not only for us, but certainly, it will help us to grow farther. Let me talk about AI and how we're trying to expand innovation and accelerate innovation with generative AI. Generative AI is changing the world. I'm sure that I don't need to talk about that.
All of you know that in the past two years, across all industries, there were lots of things which felt not possible before is now possible or something which was taking lots of time. Now it can be done much faster. Within our industry, Sportradar is uniquely positioned to get most out of Gen AI revolution. In fact, over the past few months, we have been working on something which we internally call it the Sportradar Brain. That is a concept which is connecting state-of-art large language models and Gen AI models from different AI companies out there, including my previous one, and connecting that to all Sportradar data, historic data, and real-time data, sports data, and odds data. The collection of this is basically a superhuman brain which can plan, reason, execute complex tasks related to sports and betting.
With that, the most important part of that is that that can unlock new innovation for us. Now we can build some of the experiences which the commissioner was talking about in terms of conversational experiences, in terms of content creation, and so on. For that, I would like to actually do some live demos. This is going to be riskier for me, but more fun for you. These are all in progress. They might fail. If they fail, please be nice. We have Nicolo here, who also joined from Google, one of the top Gen AI experts at Google until a few months back, now at Sportradar. Let's start by doing some demo in terms of, in this case, I want to do some conversational voice interaction. Maybe you can give me, what are your NBA favorite teams?
Give me a few names.
Timberwolves.
Celtics.
Celtics. What else? Blazers.
Blazers.
Blazers, Celtics. Should we take the Knicks also? Sorry. What did we say? Blazers, Celtics?
Box.
Box. OK.
Hello, Beshad. How can I help you today?
Hi there. Among the Bucks, Blazers, and Celtics, who had the highest chance of winning at the end of the first quarter of their most recent games?
OK. Let's see which of those teams had the highest chance of winning at the end of the first quarter in their most recent games. The Boston Celtics had odds of +111 in their game on March 31. The Milwaukee Bucks had odds of -285 in their game on March 30. The Portland Trail Blazers had odds of +285 in their game on March 30. Of those three teams, the Milwaukee Bucks had the best chance of winning according to the odds at the end of the first quarter.
OK. Let's change the question. Nikola Jokić had this crazy long shot a few months ago against Sacramento Kings. How long was that shot?
Sportradar measured the shot to be 73 ft away from the basket.
OK. Great. Let's go to baseball. What is the OPS for Juan Soto against left-handed pitchers, but only at the Fenway Park?
OK. Let me query the database for you about Juan Soto's OPS against left-handed pitchers at Fenway Park. OK. Juan Soto has been dominant against left-handed pitchers at Fenway Park, posting an impressive 1.214 OPS.
OK. Maybe we can stop this demo at this point. This is as it is. We have been showing it to some of our clients, and they have been very excited, our media clients particularly, as a next evolution of what conversational experience could be. This is to just give you an idea that we can easily instantiate that type of experience to different modalities also. We could have a basketball brain. We can have a chat brain, just a typing one, which is helping you placing odds, in which case we want to demo that now. You are now on a bet website. Tonight, there is a game between New York Knicks and 76ers. Exactly what the commissioner was mentioning, and there was zero alignment. I was very pleased to hear he said that.
On the bet website, you can ask about a question, hey, how many points the Knicks made recently, so that you can have an idea of what is the right amount of right targets to do, 118. Maybe we can go for 120. Let's say make a parlay bet. Parlay means a multibet, right, which is not easy normally to do it on the old bet websites, lots of numbers in different places. Now you just can do it conversationally. Make a parlay bet for more than 120 points. In this case, you said a margin bigger than 10 points. That is created right away in front of me. We can just press that. Let's play more with it. Let's try to add something which is not compatible.
For example, add LeBron James, who doesn't obviously play in this game, to also score more than 30 points, 30 or more. This is the brain understands that LeBron is not playing here. Let's change it with someone who plays, like Karl-Anthony Towns, to score more than 30 points or more. If that works, yes. We have now a triple parlay in this case, which is, again, more complex to be played. We can just click on that. By clicking here, this should be going on the bet website. You can now decide how much you want to put. Let's put $100. Today is Nikola's birthday. If we win, we will buy something with that $800 for him. Yeah. Yeah. Thank you, Nikola. Yeah.
That's, again, an example of really how to break the friction between users and the bet websites. The bet websites really look like how they looked 25 years ago when I was betting. Really, this new generation of conversational experiences and more immersive experiences can change a lot. Let me switch to the other aspect of what Gen AI can bring to us. That's about content creation. In this case, I use an NHL and ice hockey demo. This is a query I just typed this morning. The query was the following: write an engaging, in-depth article about a pre-match analysis of odds for the New York Islanders games, include a few tables, and also invite people to bet and wish them luck. This is connected to the Sportradar Brain that we talked about. We selected a game.
We selected a series of languages: English, French, Spanish, German, Chinese. We asked for generating an article, but also video teasers in our internal video content studio, which is based on the Sportradar Brain. In a matter of seconds, the article that you're just seeing here gets generated. This is generated with Sportradar data. It has the tables that we talked about. It talks about head-to-head results. It talks about players. It talks about the different types of insights which could be helping. At the end, it says actually what we wanted to say also here, which is inviting to bet. I'm happy that it's responsible because it says, please remember to gamble responsibly, and so on. That's basically really about how we can, in a matter of seconds, of course, we can do this in scale.
Of course, we can do this personalized. Of course, we can do this for betting or non-betting. This is really a tool which enables us to do now much more. You can do that, again, with the same one query. This is now translated into all different types of languages, same article. This is, again, content creation at scale. We wanted to have a video teaser. Again, the model decides and generates a summarized version of this. Hockey fans, are you ready for an epic showdown? This is a text for a video teaser. We tried to choose one of our favorite sport influencers. His name is Carsten, to actually now do this video teaser for us. I think we should hear him in Spanish and Chinese.
Aficionados del hockey, prepárense para un gran espectáculo. Los New York Islanders enfrentan a los Tampa Bay Lightning. La tensión está al máximo, ya que los Islanders quieren romper su mala racha de cinco derrotas consecutivas. ¿Podrán detener la potencia de los Lightning, que han anotado?
He has learned Chinese, so we can try Chinese, sorry, learned Spanish, because he speaks very fluent Spanish, but not Chinese. That's.
冰球迷们，准备好迎接一场激烈对决吧！纽约道人对侦探帕万闪电，谁会称霸冰场？道人队最近连输无常，正面临挑战。面对玻璃。
I see the idea. We can go back to the slides, please. What you're seeing here, on the one hand, was a series of experiences that we actually have been building. It's quite fast and quite cost-efficient, thanks to the Sportradar Brain. There is more that can be done there. Each of these have been very—the clients that we have been seeing have been very excited about it. The main point here is actually not any of those products alone. It's just to say that Sportradar Brain is enabling us to innovate more efficiently and innovate more and innovate more efficiently. That's actually a good segue for the last part of my presentation, which is about how AI and tech is bringing efficiency to us. There are many different things we're doing there.
I just covered the two most major aspects of how AI is bringing us efficiency. One is computer vision, of course. More than half of all the live games that we're covering, the data in real time, all of the data collection is happening in real time, thanks to our computer vision. We're doing more computer vision in real time than any other company in the world. Just to give you an idea, when a game is covered by computer vision, it's up to 90% cheaper than if we were covering it with our data collectors. In my opinion, it's not that efficiency, which is the most important part. It's actually the fact that we're also getting 100 times more data. That more data means more opportunities for in-life betting.
It means that more opportunities of micro-market and many more of the growing opportunities of betting. That new value is even bigger than the savings that it's doing. The other category that we are seeing, and we will expand the efficiency, is about software development. We have lots of software developers. Across our teams, we're seeing an increasing amount of lines of our code is being generated now by written fully or with assistance of AI. We are not just looking into the coding part of a software developer, because a software developer does many other things. They try to solve the problem. They try to find information. They try to test it. They try to write scripts. We're trying to also use AI to help for all of those. We're targeting to give more than 50%.
That's what I promised my CFO in terms of efficiency and productivity in the next few years to come. We're very confident that we will beat that number. To conclude, Sportradar is a really tech company at heart. It has been, and it will continue to be that way. The tech is actually the tech and AI is what is unlocking the value of our data assets. That's a really key part for us. We are evolving our tech towards a platform to remove the barriers that we're seeing to the growth and consolidate Sportradar's central position in the industry. We are using Gen AI and other things, but primarily Gen AI, what I showed you, for accelerating our product innovation. We are also continuing to expand our AI efforts in order to bring more operational efficiency. With that, I would like to invite--thank you all.
I would like to invite Craig, our CFO, to come on stage.
Thanks. Close that.
Thanks, Beshad. Thanks, everyone, for joining us today. I hope you have enjoyed hearing from our experienced management team and from some of our valued partners about Sportradar's building blocks, the key competitive advantages we have developed, and the unique opportunities we have in front of us. What I'd like to do now is tie everything together and show how Sportradar is poised to create significant value moving forward. Our business model is quite simple. Strategically acquire the broadest global content portfolio, leverage this content by building a best-in-class product suite, and monetize across our leading global distribution network. Our value creation framework is equally as simple and one that most companies strive for: deliver durable and consistent revenue growth, leveraging a stable and predictable cost base so we can deliver significant multi-year margin expansion and what ultimately matters most, free cash flow generation.
This capital generation will further strengthen our already robust balance sheet, providing opportunities to create additional shareholder value through targeted strategic investments and capital returns. The difference for us is this model is already in place, and now it is about continued execution. Let's start with how Sportradar will deliver durable revenue growth by capitalizing on the continued strong market expansion ahead and by delivering additional value to our customers and partners. Before we look ahead, I think it is important to take a quick look back. Our consistent ability to deliver returns significantly ahead of market growth is a testament to how our high-demand content and products resonate with our customers. Equally as compelling, that our performance has been broad-based, with international CAGR of 20% and US of 54% outpacing the market.
Our global diversity is very easy to take for granted, but it is, without a doubt, a big competitive advantage, uniquely positioning us for global expansion opportunities, and it is extremely difficult to replicate. No other sports technology company has our reach, having established relationships in over 130 countries over the past two decades. We have been trusted partners for many years. As we add content or we build new product solutions, it is informed by experience of what our customers want and what they need. These relationships have fueled our growth and, as Carsten mentioned, provide a substantial opportunity moving forward as regions like the U.S., Asia, Latin America, and Africa continue to develop. The competitive advantage that is our global reach is matched by our best-in-class products mix that Dalraj walked you through earlier.
The investments we have made in product development have resulted in a balanced portfolio of client offerings and underpin the broad-based growth we have generated. We are not overly reliant on any single product. We have a robust foundational growth from our betting and gaming content, and we are seeing strong demand from new products such as MTS and our marketing services business, demonstrating our ability to create new opportunities and additional value for our customers. No other company can match the depth and breadth of our product offerings, and this diversity will continue to provide balanced growth moving forward while allowing us to further capitalize as market demand and client priorities evolved. In addition to the geographic and product diversity, our revenue model is strategically balanced with a complementary mix of fixed and variable revenue, reinforcing the durability of our growth.
Ed walked you through how the fixed revenues continue to grow from annual price escalators and, to a larger extent, as customers expand their content and product consumption. Given the low churn, these customers provide excellent visibility with regards to future earnings and expansion opportunities. At the same time, our variable revenue capitalizes on the expansion of high-growth markets such as the US and Brazil and from the growth of MTS. Variable revenues will continue to grow faster than the market growth, given the higher take rates from the rise of in-play and the higher demand for client management tools. Now that you've seen all the components, let's talk about the assumptions that are going into our mid-teens revenue CAGR over the next three years. The largest driver will be the 10% market expansion that is projected, which will benefit us in two ways.
First, our variable revenues are tied directly to market growth, and the majority of that variable revenue is right here in the U.S., which is projected to grow much, much faster. Second, as the market grows, so does our clients' revenue, and that supports the baseline contract escalators in our fixed-fee contracts. Importantly, if the market grows faster or if new markets open, there is certainly additional upside. The second largest driver of growth is expected from cross-selling and upselling our existing customers, increasing the take rate of our variable revenue customers and increasing the pricing of our fixed-fee customers. In each case, this growth will come in the form of higher uptake of existing products across our value chain, as well as from the shift to more in-play and micro-markets.
Lastly, we continue to explore new initiatives that will expand our revenue opportunity while supporting our margin expansion and free cash flow goals. We are not baking much growth into our projection for these new initiatives, but given the company's track record of expanding into new adjacencies, we think this provides meaningful potential upside moving forward. Let's turn now to how the sustained revenue growth will translate into significant value creation for our shareholders through margin expansion and free cash flow generation. Again, before we look ahead, it is important to take a quick look back. Our consistent ability to expand EBITDA speaks to the strong returns we can generate on our revenue growth. We have just begun to scratch the surface with regards to driving operating leverage. Over the last few years, we have taken steps to be more efficient as we invested in additional long-term sports rights.
Delivering margin expansion despite these investments is a testament to our ability to align operating cost growth with the revenue opportunity. Why are we so confident that we are at an inflection point? At a high level, the majority of the significant investment necessary to support our growth has already been made, providing strong cost visibility going forward. We have also implemented an enhanced investment discipline across every single cost category, focusing spending on only those areas that provide the highest ROI opportunities. I will focus on sports rights separately, but no place is that focus more evident than with regards to personnel costs. As revenue grows, we do not need to add commensurate headcount. You saw the implications of this back in 2024 as we delivered nearly 400 basis points of leverage on our personnel.
Moving forward, we will only add new headcount to drive additional growth opportunities. The same holds true across our other operating expenses, where we are fine-tuning our product portfolio to ensure spending is commensurate with the value creation opportunity and only scaling support services as revenues expand. Lastly, as Beshad mentioned just a moment ago, we will further leverage the investments we have made in our leading technology infrastructure over the last 20 years, as well as the opportunities that AI provides with regards to data collection, product development, and client services. Given the focus on sports rights, let me spend a few minutes discussing why we are at an inflection point with regards to these rights. Dalraj spoke earlier about how we approach managing our sports portfolio, curating the most effective mix of content that appeals to both fans and bettors.
With our recently extended partnership with Major League Baseball, we now have all our largest rights locked up for an average of six years, providing significant visibility on our largest cost driver. Equally as important to the cost certainty that these long-term contracts provide, we have a really long runway with regards to product innovation, allowing us to deliver additional return on this investment. As new states and/or territories legalize, we do not have additional costs for these rights. To highlight the margin expansion opportunity inherent in our sports rights, let's look at a quick example from both a P&L and a cash perspective. This illustrates a single sports right assuming consistent revenue growth over the life of the deal. A few key items to note. First, we capitalize our long-term sports deals, and we amortize them on a straight-line basis, creating obvious margin expansion as revenues grow.
Additionally, as we innovate and create more product and fan engagement opportunities, adjusted EBITDA margins expand even further. Second, from a cash flow perspective, our cash payments escalate over the life of each deal. Cash margins will be higher at the start of each contract and lower by the end, but they will expand over the life of each deal given the anticipated revenue growth. With that example in mind, let's look at our estimates for sports rights moving forward. With all of our major rights deals locked in, we are now projecting 9% expense growth and 10% cash spend growth over the next three years versus our 15% revenue growth, resulting in meaningful operating leverage.
Built into these estimates, we assume we add additional global tier two and tier three content at a similar clip to what we have done historically to meet the growing needs of our customers while ensuring that all of these new rights are margin accretive. Looking at all the components of margin expansion together, the biggest driver will be the 15% revenue CAGR we are projecting over the next three years. As our revenues grow faster than our cost base, we will get leverage across all facets of our spend. Given the projected 9% increase in sports rights expense over the next three years, we anticipate approximately 400 basis points of leverage from our sports rights.
After delivering over 800 basis points of margin expansion from non-sports costs in 2024, we anticipate approximately 300 basis points of additional expansion between now and 2027 from further leveraging personnel, purchase services, and other overhead costs. Importantly, the 27% adjusted EBITDA margin target is only a point in time, and we see a clear pathway to even higher margins given the significant incremental margins of our business. The build once and sell many concept is evidenced by the 35% incremental margins we are guiding to for 2025. Between now and 2027, we anticipate incremental margins to exceed 40% from further market expansion, from selling existing products with limited incremental costs, and from disciplined investment in new products. Success will beget success, and as we continue to scale, we see no reason why incremental margins can't exceed 50% in the future.
While we are excited about the margin opportunity, at the end of the day, the key is to deliver substantial free cash flow growth. We have made huge strides on this front, with free cash flow conversion growing from nothing a few years ago to over 50% in 2024. This growth has been a combination of the strength of our business model as well as our diligent focus on optimizing working capital by reducing day sales outstanding and increasing days payable. We still have additional opportunity to further optimize in these areas, and anticipate free cash flow conversion will continue to grow moving forward, driving not only free cash flow itself, but also free cash flow per share. When you look at all the pieces together, you can see why we are at an inflection point for value creation.
The 15% revenue CAGR we are projecting over the next few years, when combined with our stable cost base, will drive margins to 27%, and we will convert over 60% of our adjusted EBITDA into free cash flow. Which brings me to how we will deliver additional value through our strong balance sheet and capital allocation strategy moving forward. Our financial performance over the past few years has resulted in a very strong balance sheet with well over $350 million in cash and no debt today. When you consider the free cash flow that we will generate over the next several years, we anticipate over $1 billion of available capital through 2027. Our first priority for that capital remains investing back into our business, either through organic investment in additional content, product development, or technological capabilities that will generate a return on investment in excess of existing levels.
Second, we will look for M&A opportunities that complement, support, or accelerate our existing business model and further contribute to expanding margins to over 30%. Our pending acquisition of IMG Arena is a great example of this focus, and we will continue to look for ways to augment the growth inherent in our model today. Lastly, as we invest in our business, given we believe that our shares remain undervalued, we plan on accelerating repurchases under our $200 million share repurchase plan moving forward. Before I finish, I want to remind everyone that the financial expectations that we have laid out today exclude any impact from our announced acquisition of the IMG Arena rights business. We anticipate that the transaction following closing will be margin accretive from both an EBITDA and free cash flow perspective.
Aside from the free cash flow we will generate from these rights, we will also receive approximately $125 million in cash payments over the two years following the close of the transaction. As I mentioned on our earnings call, just to frame it for you, if we own these assets for the full year 2025, our expectations would have been for total company revenue growth in the high 20% range. We will provide additional color when the deal closes. We are excited about the opportunity these valuable rights will provide for our customers and for our shareholders. We could not be more excited about the opportunity ahead for Sportradar.
With a diverse business model that has poised to deliver durable revenue growth and with a cost structure that has strong visibility and inherent operating leverage, we will continue to ramp free cash flow generation moving forward, further bolstering our balance sheet and providing diverse opportunities for capital allocation to further drive value creation for our shareholders in the months and years ahead. Thank you so much for attending today, and we will now get ready to answer any questions you may have.
Thank you. Of course. Yeah, I'm sitting next to you. Great, thank you. We are going to start our Q&A session. It's going to run about 30 minutes. Mics are going to be going around the room, so we just ask that you wait to get a mic.
When you do ask your question or before you do, please state your name and your firm, and then we ask that you only ask one question so we can fit as many in as possible. Look. Great.
Thanks for taking the question, Bernard McTernan from Needham. Would love when the slides and all the discussion on product development, can you just talk about how that differs for a smaller client versus a larger client? Especially how that conversation changes given some of those interesting AI products that you guys are launching. It's a bit of split between you, Dalraj, and then I would say weigh in for the AI with Stasia. Yeah, sure. Yeah, things do differ in terms of client segmentation.
Typically, when we're working with smaller clients, they are instantly looking at the higher end of the value chain because they don't have the economies of scale to develop things themselves. Therefore, we always kind of typically start there with smaller clients. With larger clients, sometimes they're starting a bit lower in the value chain because they want to take some, whether that be just the data or the odds and build some products themselves. That being said, we still have the economies of scale to grow them up the value chain, as one of the slides kind of showed. That is how we see the different client segmentation. To be honest, there's not a major difference between them. The only difference comes when we're talking about more UI/UX orientated products. Of course, clients want different—they want differentiation.
If we give them an all-in product that looks exactly the same, that's not going to work for them. That's why modularity is so important. They can pick and choose the aspects they need from us and then build the flexibility and customization on top. Yeah, maybe on the AI side, I can add that. Smaller clients of ours have much less investment on that front. They actually can more directly benefit from the AI types of developments. Still, the larger ones will benefit a lot because the Sportradar brand, thanks to the data breadth and depth that we have, cannot be replicated by any other company. For example, to give an example, some of the larger bet websites have been making some conversational experiences.
We can types of conversational experiences which I showed. It's better than what they have, but it can be also replicated to all ranges of clients. I think there's actually one more point as well to make here. It's besides the product, we also have the content, of course. Smaller operators tend to operate in one market, one particular market, and may also concentrate highly on one particular sport, soccer or basketball, whatever that local market that they operate and they serve is needed. The bigger the operator grows, you will see often that they will have multiple brands and also are going to start operating in multiple countries, which changes the sport mix. That is then also their spend model with Sportradar changes by adding more content, that fuel that I spoke about through the existing products that they're using.
That's another element of that growth part as well that you see and a differentiator between smaller clients and larger clients. Why don't we go to the side of the room, Robin?
Thank you. Robin Farley from UBS. My question is about the revenue guidance. We had a slide about the T1 and serviceable market share for iGaming. How much of that is in your revenue guidance, or would that be additional to the revenue guidance? And same t grade hing with the T grade? If you could help us think about what's in your guide for your average T will be in 2027 compared to today.
I think Greg, Robin says gently that you are sandbagging. Yeah, as I mentioned, there's not a whole lot baked into our guidance, frankly, for new adjacencies.
When you saw in the slide that I presented, only a small percentage of our growth between now and 2027 is baked in. That is why we believe that there is significant upside. Carsten mentioned that he believes there is significant upside to our guidance. When you break down the components of our guidance and you look to the 15% that we are looking at over the next three years, there is a mid to high single percentage piece of that, which is attributable to higher take rates, right? Which includes higher from in-play. It includes higher client services. It includes more product take-up. It is a variety of those three things, but that is how much it should contribute moving forward.
Ryan Sigdahl, Craig-Hallum . Great presentation on the evolution of Sportradar expanding the upsell value-add journey. Do you have something competitive, dynamic?
Carsten, maybe to you, you've been around for a long time doing this. How that dynamic and the evolution of the competitive, maybe fewer players, but doing different things. That's evolved. Look, we are always trying to front-run whatever we are doing. I'm surrounded by a very passionate team. As you see, we are really gearing and ramping up on the technology base. We knew that we're sitting on a gold mine from a data perspective, but we need to make this working. I think this is the competitive spirit which you need to have. From a client perspective, it's very simple, and therefore I brought the clients in today. What they need is reliability, stability. They need to project and calculate with a partner. Nothing worse than the client can't anticipate your next movements.
Do you triple the price next week? How reliable is it for their business model? If you put that all together, leading the technology, looking consistently that the portfolio is the portfolio the clients want to have, and building that trust relationship and supporting the client with the innovation, I think this is putting us ahead. We are doing this because this is the way how we operate since the beginning. It looks like that instinctively we are doing the right things here. Right here. Over here. Carsten's looking all over. I like this format much more than these phone calls, so I see the faces. I love this. This is Stephen Grandlick from Morgan Stanley. Thanks for taking the question. This is more of an industry question, but I think Carsten, you're probably the best to answer it.
Within the guidance, you talked about the US growing faster than the overall top line. There's been increasing concern about handle growth, which is what a lot of investors, I think, pay a lot of attention to, but maybe it's not the best indicator. I'm curious to get your take on what you've been seeing in the US market as you think about handle growth to actual revenue growth and how that impacts your model. That goes to the core of our business model and how we charge the US clients. I would say we are very diversified, but I know the gentleman sitting here right to my side can give you the details on how we are structuring our contracts that we are mostly independent from the handle. I mean, we have a clear revenue mix when you look at the US market, right?
The US market is not for us just only the betting operators. We have a very broad mix where we have our media partners, our technology or digital partners as well. Also, let's not forget the sport teams where we provide data and statistics and real-time data for them for their coaching and analytics products. If you look at that across our revenue and our revenue mix in the US, you'll see that what we take from a revenue share perspective, which can be GGR-based, but we also have NGR-based, and we also have overall on the overall turnover, we have different relationships, different percentages with those operators in the market. I think it is the mix that really provides that stability for us as well and how we grow with our clients in that market.
Maybe to add on this, there are minimum guarantees which buffer some of those things. If you look now to the overall picture from a trading result, the U.S. has close to minor influence. Looking on a worldwide level from an MTS result mix, that levels are quite well because of the volume and the diversity. We've got David here.
Thanks very much. David Katz, Jefferies. Thanks for all the insights today. One of the impression walkway impressions is that seemingly there's almost nothing you can't solve. One of the recent observations of your larger U.S. customers is solving for the volatility and luck, right? Is that a function from your perspective of just the nascent stage of the market?
Is it experience or are there tools that you can develop or are developing that can sort of help them manage that volatility that's one of their problems to solve? That's one of the things which I'm discussing actively or the team is discussing actively with the players here. Yes, we definitely think there are some opportunities by going in, running buffers, something which is coming up front to the match, so the pre-match pricing. There are a lot of opportunities to stimulate and to hedge yourself. Making this a bit broader with an aggregator like us in between, that's concepts which we are discussing. Definitely, I think you are right. This is a bit a question of this is a new market and the volume is getting bigger and bigger. You are going to need to learn from this.
Many of the operators worldwide, they are doing this already highly successful. They can do it within themselves or within the pool of comparable operators which are around. This is a concept to buffer the exposure which is there. Live betting is a key for it.
Hi, it's Eric Semler with TCS Capital. Great presentation. It was really, really impressive. I like the Chinese language most. What do you think about it? I learned a lot about this. It worked a lot to prepare for this. It's going to really help. It was five nights. I know I'm probably thinking too long term, but if you think about the cost of sports rights for you going forward beyond 2030 or 2029, how do you think about the cost of them?
Is there a way for you to kind of finesse it so maybe you can extend them before that? Even though it seems like we just got over this hump of getting them kind of farther out and it's created this nice stability, is there more you can do to kind of create more length and durability? First of all, we can predict it for the next couple of years. Six years in average is the duration from the major contracts. That gives us certainty, and this gives us certainty for the planning, and it gives us certainty and trust that we can state what we stated today. We see margin leverage. We are on an inflection point. We reached it a little bit earlier than we thought thanks to a very disciplined approach. For the next six years, that's visible. We have this.
Looking now, what should we do? We should drive innovation. You listen to the commissioners, what they want to do. Adam Silver is already in the betting slip. And how to make that interaction better? Because we all understand it's about digital sport fan engagement. The better we do this, the less I'm worried about the raw material. Because if we unlock value for sport on more levels than only sport betting, this is the secret sauce here. So working together with sport to provide them the value is the same like working with our clients to provide them the value. But that's the secret for having sustainable growth in a partnership and avoiding that cliff discussions when contracts are up to expire.
Yes, when the partner is open to speak about early extensions and if the conditions are fitting, and we are very strict with what fits for us and whatnot, we might do this earlier. If there is an opportunity. One other thing that I should add because we did not cover it in our presentation is as part of our discussions with these leagues when we decided to do these long-term partnerships, Major League Baseball, NHL, and NBA all wanted to have an equity ownership in Sportradar because they believe in the value creation that we are going to have not only for them as a league, but that they are going to help us create as a company. I think that it helps when we look at the long-term potential of these deals. They are embedded with us as much as we are embedded with them. Go ahead.
Yep, back there. Hey, it's Michael Graham from Cannacord Genuity , and thanks for the great presentation. I wanted to stay on sports rights because I think the leverage there is really interesting and focus maybe as an example on the ATP deal. Maybe talk about since you took those rights over from IMG Arena, what were some of the things that you've done to kind of make that portfolio really work for you? Just interested if that's a roadmap for some of the other content that you're kind of taking in as part of the acquisition. Look, ATP was that was a tough deal to get. I can write a book about it. We convinced them, I hope I can say this, but we didn't convince them from a money perspective that we had been outstanding. I think the offers have been very, very close.
The two things what convinced ATP is our opportunity to upsell and cross-sell and create products with this and provide technology and value to sport. We delivered on this. What I hear from the partner is that the performance which we delivered measured by revenue and profit for the sport simply astonished them. We had been better than they projected, significantly higher than the incumbent player. We are doing the same playbook with technology and development. Computer vision is now in every tennis match. There are things happening which I should not tell you, but I think we are better than Hawkeye with computer vision. We see mistakes what they are doing. They are used for, yeah, judging on the match. Of course, that goes hand in hand, and we correct this in the background, and it's a partnership.
The technology plays a main role here. If we are looking now to the bigger picture, this is a very important partner for us. Tennis is a very important sport because it provides so many live betting opportunities, and this is driving take rate, driving the revenues for us. We want to do more. When we saw the opportunity with IMG having three Grand Slams, which is the top end of the range, adding this to ATP, that makes a lot of sense because we did that engine. We did the products. Now we fill in this content, and we have the connection points there. This is something where this works.
When I looked into this opportunity, this was the deal where I said, "Give me the numbers that I understand how much more upselling we could do comparing to what IMG did with ATP." That gave me a very good feeling how good there is always some buffer, and my team knows that I always challenge them. I think we will be very happy about adding those sports to our portfolio because I see these opportunities, and it's proven with the ATP. Maybe I can build on that with an example. With ATP, with the product, with the engine that we have, and actually links to what Beshad showed you in his presentation through computer vision and the many, many more data points. We, for example, for every single ATP match, we can create 1,500 micro games or micro markets for betting, right? Markets, sorry. Thank you.
Now, it's not about those 1,500 micro markets that they all create a tremendous GGR for the operator because US consumer need to find them, whereby, by the way, we have the solution for that as well, as Beshad showed. Again, it is fan engagement. It is engaging with the punter, engaging actually with the tennis fan watching that match, right? That is just one example I can give you how product innovation, data, computer vision all comes together, which no one else in the industry can do that. Jason.
Hi, Jason. Jason Bazinet, Citi. You guys articulated so many tailwinds, right? GGR growth, the move to in-play betting, technological changes, geographic expansion.
The only headwind that I can potentially see over the next three years is either the OSBs sort of drop out and they just shut their doors because they can't compete with the winners in a particular market, or there's consolidation among OSBs, which just seems to me as a layman is a negative for you. I would love if you could sort of talk about in maybe a more mature market where you've seen OSB consolidation, maybe it didn't turn out so badly. Maybe it turned out where it was better than it would seem like from afar. Look, we actively monitor the market. We monitor the market. Are there opportunities for us in a consolidation scenario? We have clear criteria for this. You know our numbers. You see what we should deliver. If we see some opportunities around there, yes, why not?
We continue to drive our way, and we continue to drive this with very high speed. We have a clear strategy, what we want to execute, and we are running down this road. If there are opportunities simply probably driven by us with the speed which we do and with the scale which we have, let's look into it. At the end, we have a very clear mission. We have a very clear strategy, and we execute on this. That's where it goes. Maybe two things I can add to that. It's a great question, by the way. If you look at more mature markets, but then look at our client segmentation, you will see that a lot of our clients that sit in that mid-segment, and they're the ones that would consolidate in most of those cases.
You'll see that a lot of them are using our Managed Trading Services or using other services from Sportradar that are actually based on revenue share. Consolidation with a revenue share component in it doesn't really matter, right? Your GGR goes from A to B, and we still take the percentage of the GGR and to upsell, cross-sell, bigger, more content, that percentage will go up. Another area where you see a lot of market consolidation, not so much because there's one pushing out the other, but there's a lot of smaller operators that enter these markets is, for example, Brazil. Do we here in this room believe that in five, six, seven years from now, when that market really is a mature market, that there are going to be 100 operators or 200 operators in that market? No, that's not going to happen.
Look at the footprint they have right now with Sportradar. The relationship is almost all based on Managed Trading Services, meaning revenue share. That's what I showed in my presentation as well when we talk about new markets, upcoming markets, market-adjacent markets. We work with revenue share models and not with fixed price models.
It's George Karalis with Benchmark. Beshad, amazing to look at the work that you are bringing. When you look at just the data mining, that brain that you talk about, and how quickly you look at possibly putting a sports bet from one of your OSBs up and then asking the questions and then creating the possibility of various types of parlays, whatever, how quickly are you seeing the opportunity from an innovative standpoint to take an idea and then foster it quickly to what you're seeing?
Yeah, I think one of the main points of the Sportradar Brain is to actually accelerate innovations. To just give you an idea, everything I showed you, which was live, it took just the past couple of months that we have been working on with a small team. I think, and again, it's possible because and thanks to the foundation, which is really ready, and because of the fact that we are not ourselves building the large language models. There are other companies out there which are building the AI models out there. We are very, in my opinion, smartly connected to our data in a way that no one else can do that. Now once you have that, and by the way, that's very nice because when Google and OpenAI and others improve their models, it also improves our Sportradar Brain.
They cannot match what we can be building. Generally speaking, with generative AI, the time from idea to prototype is really a matter of days. The time from a prototype to real production, of course, depends on their product, but it can really be weeks and months. We are not talking about, "Hey, I show you a cool demo. This is launching in five years from now." Rather, when it makes sense, it is really a matter of weeks. Go ahead.
Paolo Personeni from Hildreth Capital Partners. I have got a question on the NFL. How do you think about the importance of the NFL and betting to the US market growth over time and what that means for Sportradar, given the nature of your relationship with the league compared to the other major US leagues?
The NFL is the most known league here in the country and the most respected one from a viewership, the biggest one. We are in that sector. Of course, we are interested to understand how the NFL wants to develop the property, which direction we want to go. You might know that we had been a partner from the NFL a couple of years ago. We are very open to have talks. We are very open to provide value to it. At the end, it's always the choice of the sport in which direction to go. We are happy that we are sitting on more than 70% from a volume perspective on the US sport properties. This gives us a very strong handle, and this makes us very confident from a monetization perspective here in the country that we are front and center.
If we can add value, we are not walking away on this, you can be sure. It is only a question what sport really wants to have, and it is always a package.
Yep. Okay. Hi. Chad Bynon from Macquarie. Thanks for the presentation today. Carsten, what is your initial view on the prediction markets that have crept up lately, your conversations with your partners? Do you view this as a threat or maybe thinking about it differently? Could this be an opportunity where it kind of expands the TAM or the SAM with your MTS offering with some of these non-traditional products? Thanks.
Every new operator is an opportunity for us, so we welcome this. That is something where it gives us more opportunities to engage and to build a partnership.
If I'm looking now on it worldwide, I saw this with companies like Betfair, for example, since more than 20 years. It had a natural ceiling because the complexity is not so easy to understand for the mass market. That's what I get talking to people. Why has that not exploded and only going in this one direction? The beauty of sports betting is always you can price nearly everything. That is a beauty. So whatever happens in sport with sports betting, you can price it. It's the fixed odds betting style, and that makes this possible. I think innovation is always welcomed. This one here from a transaction side is not that straightforward. It goes more to the people like sitting here in the room. The financial community has no problem with this. But the average sports fan might see it a little bit more complex.
I think it needs more explanation. It takes longer. There is an aspect purely from a taxation perspective, which I find highly interesting. There is for sure a debate around this. We welcome it. We welcome it because there is more client potential for us. It is a different style than fixed odds betting
Okay. I think we're done with the Q&A. Carsten, do you want to make a couple concluding remarks? First, I want to say thank you for all of you to listen to me speaking Chinese. It was also an experience for me. It was very nice to see all of you face to face. I would love to have this format in the quarterlies. Maybe we adopt it and we make such meetings all the time. My colleagues are happy that they do not need to do it too often.
I really enjoyed it. I really enjoyed to work here with this team. You see, this is a very strong bench. It's not Carsten. We are only representative for all the employees, 4,400. This power which we have and the culture and this passion for performance and the mindset which we created here, that's driving us. For me, it was a pleasure to have this time. I have to say thank you here for my colleagues. Thank you for our guests, George. Thank you very much. I said already thank you to the commissioners and said we come later. You're going to probably increase the prices. No, I'm joking. They are fixed. I learned some food in the other room, and we can, of course, mingle and ask all the questions which you don't want to ask here in the big round.
Thank you very much.