Genius Sports Group has posted a loss of £7.6m for the year 2018 despite a 23.9% annually rise in revenue for the 12-month period.
Revenue for the year ended December 31, 2018, calculated to £65.8m, up from £53.1m in the year 2018. Genius Sports acknowledged significant boost in its rest of world business, with gross up from £200m to £31.3m. UK revenue also escalated from £6.1m to £7.3m, while rest of Europe revenue increased a little from £26.9m to £27.2m.
Albeit, GS also acknowledged a boost in expenses for the year, with the cost of sales rising 52.4% from £18.4m to £28.0m and legislative expenses up from £23.3m to £29.5m. Hiring more staff costs specifically hit Genius, with this jumping from £22.3m to £29.7m as the business increased its employee numbering from 669 to 901 in the year.
The escalated costs drove Genius from an operating profit of £5.9m in 2017 to an operating loss of £4.2m for the full year. Assessing the results, Regulus Partners said that Genius’s historical pattern of growing revenue at the expense of profitability also need to be changed in order to deliver viable potential.
Regulus also noted two significant events for Genius in the past year, which have added the acquisition of a controlling stake by Apax in the third quarter, which Regulus said will improve firepower and discipline.
Market Analyst at Regulus also emphasised Genius’s acquisition of English and Scottish football official betting data from what is now Stats Perform, saying that this is
“transformational to Genius and potentially transformational to the betting as well as sports rights sectors.”