Genius Sports Group posted a £ 7.6 m loss for 2018 despite an annual revenue growth of 23.9 percent over the 12-month period.
Revenue rose to £ 65.8 million for the year ended December 31, 2018, up from £ 53.1 million in 2018. In its rest of the world market, Genius Sports experienced significant growth, with sales growing from £ 200 m to £ 31.3 m. UK revenue also rose from £ 6.1 million to £ 7.3 million, while the rest of Europe’s revenue rose from £ 26.9 million to £ 27.2 million.
Nonetheless, GS also reported a rise in expenditures for the year, with revenue costs increasing 52.4 percent from £ 18.4 million to £ 28.0 million and administrative expenses rising from £ 23.3 million to £ 29.5 million. In general, recruiting more staff costs hit Genius with this leap from £ 22.3 m to £ 29.7 m as the company raised the number of employees from 669 to 901 in the year.
The rising costs pushed Genius to an operating loss of £ 4.2 m for the full year from an operating profit of £ 5.9 m in 2017. In reviewing the findings, Regulus Partners said that in order to deliver viable potential, Genius ‘ historic trend of that sales at the cost of profitability must also be reversed.
Market Analyst at Regulus also highlighted Genius ‘ acquisition of official betting information from English and Scottish football from what is now Stats Perform, claiming it is transformational to Genius and potentially transformational to the betting as well as sports rights sectors.”