Segment Reporting and Geographic Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Reporting and Geographic Information

17. Segment Reporting and Geographic Information

The Company operates its business along four operating segments, which are segregated on the basis of revenue stream: Gaming, Virtual Sports, Interactive and Leisure. The Company believes this method of segment reporting reflects both the way its business segments are managed and the way the performance of each segment is evaluated.

The following tables present revenue, cost of sales, excluding depreciation and amortization, selling, general and administrative expenses, depreciation and amortization, stock-based compensation expense and acquisition related transaction expenses, operating profit/(loss) and total capital expenditures for the periods ended September 30, 2022 and September 30, 2021, respectively, by business segment. Certain unallocated corporate function costs have not been allocated to the Company’s reportable operating segments because these costs are not allocable and to do so would not be practical. Corporate function costs consist primarily of selling, general and administrative expenses, depreciation and amortization, capital expenditures, right of use assets, cash, prepaid expenses and property and equipment and software development costs relating to corporate/shared functions.

Segment Information

Three Months Ended September 30, 2022

	Gaming			Virtual Sports			Interactive			Leisure			Corporate Functions			Total
	(in millions)
Revenue:
Service	$	19.0		$	14.6		$	5.7		$	29.9		$	—		$	69.2
Product sales		5.1			—			—			0.6			—			5.7
Total revenue		24.1			14.6			5.7			30.5			—			74.9
Cost of sales, excluding depreciation and amortization:
Cost of service		(4.4	)		(0.5	)		(0.8	)		(8.5	)		—			(14.2	)
Cost of product sales		(3.5	)		—			—			(0.4	)		—			(3.9	)
Selling, general and administrative expenses		(7.4	)		(1.6	)		(1.8	)		(11.9	)		(6.5	)		(29.2	)
Stock-based compensation expense		(0.4	)		(0.2	)		(0.1	)		(0.1	)		(1.7	)		(2.5	)
Acquisition and integration related transaction expenses		—			—			—			—			(0.1	)		(0.1	)
Depreciation and amortization		(3.9	)		(0.7	)		(0.7	)		(3.1	)		(0.4	)		(8.8	)
Segment operating income (loss)		4.5			11.6			2.3			6.5			(8.7	)		16.2
Net operating income																$	16.2
Total capital expenditures for the three months ended September 30, 2022	$	2.0		$	1.1		$	1.2		$	4.3		$	0.8		$	9.4

Three Months Ended September 30, 2021

	Gaming			Virtual Sports			Interactive			Leisure			Corporate Functions			Total
	(in millions)
Revenue:
Service	$	19.7		$	10.5		$	6.1		$	32.4		$	—		$	68.7
Product sales		7.9			—			—			1.0			—			8.9
Total revenue		27.6			10.5			6.1			33.4			—			77.6
Cost of sales, excluding depreciation and amortization:
Cost of service		(4.1	)		(0.5	)		(1.0	)		(8.2	)		—			(13.8	)
Cost of product sales		(4.2	)		—			—			(0.5	)		—			(4.7	)
Selling, general and administrative expenses		(8.4	)		(1.4	)		(1.7	)		(11.7	)		(6.0	)		(29.2	)
Stock-based compensation expense		(0.5	)		(0.3	)		(0.2	)		(0.1	)		(2.7	)		(3.8	)
Acquisition and integration related transaction expenses					—			—			—			—			—
Depreciation and amortization		(5.3	)		(0.7	)		(0.9	)		(3.9	)		(0.4	)		(11.2	)
Segment operating income (loss)		5.1			7.6			2.3			9.0			(9.1	)		14.9
Net operating income																$	14.9
Total capital expenditures for the three months ended September 30, 2021	$	2.4		$	0.6		$	0.9		$	1.5		$	0.3		$	5.7

Nine Months Ended September 30, 2022

	Gaming			Virtual Sports			Interactive			Leisure			Corporate Functions			Total
	(in millions)
Revenue:
Service	$	59.7		$	40.2		$	16.8		$	74.3		$	—		$	191.0
Product sales		14.0			—			—			1.8			—			15.8
Total revenue		73.7			40.2			16.8			76.1			—			206.8
Cost of sales, excluding depreciation and amortization:
Cost of service		(13.5	)		(1.7	)		(2.6	)		(19.9	)		—			(37.7	)
Cost of product sales		(9.3	)		—			—			(1.1	)		—			(10.4	)
Selling, general and administrative expenses		(21.9	)		(4.6	)		(5.1	)		(35.2	)		(18.5	)		(85.3	)
Stock-based compensation expense		(1.0	)		(0.5	)		(0.4	)		(0.4	)		(5.6	)		(7.9	)
Acquisition and integration related transaction expenses		(0.1	)		—			—			—			(0.2	)		(0.3	)
Depreciation and amortization		(12.8	)		(2.0	)		(2.1	)		(10.3	)		(1.5	)		(28.7	)
Segment operating income (loss)		15.1			31.4			6.6			9.2			(25.8	)		36.5
Net operating income																$	36.5
Total capital expenditures for the nine months ended September 30, 2022	$	11.2		$	3.3		$	3.7		$	10.3		$	2.7		$	31.2

Nine Months Ended September 30, 2021

	Gaming			Virtual Sports			Interactive			Leisure			Corporate Functions			Total
	(in millions)
Revenue:
Service	$	38.1		$	25.0		$	17.1		$	43.1		$	—		$	123.3
Product sales		16.5			—			—			2.1			—			18.6
Total revenue		54.6			25.0			17.1			45.2			—			141.9
Cost of sales, excluding depreciation and amortization:
Cost of service		(8.3	)		(1.3	)		(2.7	)		(11.6	)		—			(23.9	)
Cost of product sales		(9.5	)		—			—			(1.1	)		—			(10.6	)
Selling, general and administrative expenses		(19.2	)		(5.2	)		(4.0	)		(23.1	)		(16.6	)		(68.1	)
Stock-based compensation expense		(1.1	)		(0.5	)		(0.4	)		(0.3	)		(6.3	)		(8.6	)
Acquisition and integration related transaction expenses		—			—			—			—			(1.5	)		(1.5	)
Depreciation and amortization		(17.7	)		(2.5	)		(2.5	)		(12.2	)		(1.3	)		(36.2	)
Segment operating income (loss)		(1.2	)		15.5			7.5			(3.1	)		(25.7	)		(7.0	)
Net operating loss																$	(7.0	)
Total capital expenditures for the nine months ended September 30, 2021	$	6.6		$	2.5		$	2.7		$	6.3		$	1.1		$	19.2

Geographic Information

Geographic information for revenue is set forth below:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)				(in millions)
Total revenue
UK	$	59.2	$	58.6	$	160.6	$	99.4
Greece		5.6		6.2		16.8		12.4
Rest of world		10.1		12.8		29.4		30.1
Total	$	74.9	$	77.6	$	206.8	$	141.9

UK revenue includes revenue from customers headquartered in the UK, but whose revenue is generated globally.

Geographic information of our non-current assets excluding goodwill is set forth below:

	September 30, 2022		December 31, 2021
	(in millions)
UK	$	77.0	$	90.0
Greece		7.3		11.6
Rest of world		16.1		21.0
Total	$	100.4	$	122.6

Software development costs are included as attributable to the market in which they are utilized.