Craig Felenstein, the CFO of Sportradar, indicated that the company remains receptive to merger and acquisition (M&A) opportunities, provided these moves significantly propel the business forward. Felenstein made these comments during the Morgan Stanley Global Consumer and Retail Conference.
Sportradar, in its recent quarterly financial disclosure, reported a substantial increase in free cash flow, reaching €122 million for the quarter ending September 30, a rise from €51 million in the previous year. Felenstein referred to this financial situation as a “high-class problem,” highlighting the company’s focus on investing in its current offerings and exploring organic growth opportunities.
While prioritizing organic growth, Felenstein mentioned that Sportradar is also on the lookout for M&A opportunities that could enhance its growth trajectory. To consider an acquisition, it must align with their robust organic growth standards, which Felenstein noted can be challenging to achieve.
The discussion also touched upon whether potential M&A efforts would target specific business segments or if they were broadly exploring options. Recently, Sportradar made a strategic move by acquiring North America-focused assets from XLMedia for $30 million. This acquisition includes key brands like CBWG, Sports Betting Dime, and Saturday Football Inc., strengthening Sportradar’s position in the affiliate sector.
This latest acquisition is set to enhance the company’s existing digital marketing and advertising capabilities under its ad:s division. Despite the lack of immediate large-scale acquisition targets, Felenstein emphasized that Sportradar continues to explore opportunities that could enhance its portfolio in areas like betting, advertising, technology, and services.
Sportradar’s share price stood at $17.50 at the close of the previous day.
The article originally appeared on EGR Intel.