Segment Reporting and Geographic Information

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segment Reporting and Geographic Information

16. 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, stock-based compensation expense and depreciation and amortization, operating income (loss) and total capital expenditures for the periods ended June 30, 2024 and June 30, 2023, 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 and capital expenditures relating to corporate/shared functions.

Segment Information

Three Months Ended June 30, 2024

	Gaming			Virtual Sports			Interactive			Leisure			Corporate Functions			Total
	(in millions)
Revenue:
Service	$	17.9		$	11.7		$	9.4		$	26.8		$	—		$	65.8
Product sales		9.2			—			—			0.6			—			9.8
Total revenue		27.1			11.7			9.4			27.4			—			75.6
Cost of sales, excluding depreciation and amortization:
Cost of service		(5.1	)		(0.1	)		(0.5	)		(13.3	)		—			(19.0	)
Cost of product sales		(5.6	)		—			—			(0.2	)		—			(5.8	)
Selling, general and administrative expenses		(6.4	)		(2.0	)		(2.8	)		(7.8	)		(10.2	)		(29.2	)
Stock-based compensation expense		(0.2	)		(0.1	)		(0.1	)		(0.1	)		(1.1	)		(1.6	)
Depreciation and amortization		(3.4	)		(2.5	)		(1.2	)		(3.0	)		(0.5	)		(10.6	)
Segment operating income (loss)		6.4			7.0			4.8			3.0			(11.8	)		9.4
Net operating income																$	9.4
Total capital expenditures for the three months ended June 30, 2024	$	2.2		$	4.8		$	0.4		$	2.6		$	1.2		$	11.2

Three Months Ended June 30, 2023

	Gaming			Virtual Sports			Interactive			Leisure			Corporate Functions			Total
	(in millions)
Revenue:
Service	$	19.8		$	15.1		$	6.7		$	25.9		$	—		$	67.5
Product sales		11.3			—			—			0.6			—			11.9
Total revenue		31.1			15.1			6.7			26.5			—			79.4
Cost of sales, excluding depreciation and amortization:
Cost of service		(6.5	)		(0.4	)		(0.4	)		(13.2	)		—			(20.5	)
Cost of product sales		(8.4	)		—			—			—			—			(8.4	)
Selling, general and administrative expenses		(5.0	)		(1.6	)		(2.7	)		(6.8	)		(7.4	)		(23.5	)
Stock-based compensation expense		(0.4	)		(0.2	)		(0.1	)		(0.4	)		(2.0	)		(3.1	)
Depreciation and amortization		(4.6	)		(0.8	)		(1.0	)		(3.0	)		(0.7	)		(10.1	)
Segment operating income (loss)		6.2			12.1			2.5			3.1			(10.1	)		13.8
Net operating income																$	13.8
Total capital expenditures for the three months ended June 30, 2023	$	2.1		$	1.2		$	0.5		$	3.8		$	1.0		$	8.6

Six Months Ended June 30, 2024

	Gaming			Virtual Sports			Interactive			Leisure			Corporate Functions			Total
	(in millions)
Revenue:
Service	$	36.5		$	24.1		$	17.5		$	44.8		$	—		$	122.9
Product sales		14.6			—			—			1.2			—			15.8
Total revenue		51.1			24.1			17.5			46.0			—			138.7
Cost of sales, excluding depreciation and amortization:
Cost of service		(10.9	)		(0.5	)		(1.1	)		(22.4	)		—			(34.9	)
Cost of product sales		(9.9	)		—			—			(0.4	)		—			(10.3	)
Selling, general and administrative expenses		(13.0	)		(3.6	)		(5.9	)		(15.3	)		(23.3	)		(61.1	)
Stock-based compensation expense		(0.4	)		(0.2	)		(0.2	)		(0.2	)		(2.9	)		(3.9	)
Depreciation and amortization		(7.7	)		(3.4	)		(2.4	)		(6.0	)		(1.0	)		(20.5	)
Segment operating income (loss)		9.2			16.4			7.9			1.7			(27.2	)		8.0
Net operating income																$	8.0
Total capital expenditures for the six months ended June 30, 2024	$	4.2		$	6.0		$	0.9		$	7.5		$	1.7		$	20.3

Six Months Ended June 30, 2023

	Gaming			Virtual Sports			Interactive			Leisure			Corporate Functions			Total
	(in millions)
Revenue:
Service	$	40.0		$	29.9		$	12.6		$	42.5		$	—		$	125.0
Product sales		18.2			—			—			1.1			—			19.3
Total revenue		58.2			29.9			12.6			43.6			—			144.3
Cost of sales, excluding depreciation and amortization:
Cost of service		(12.4	)		(0.8	)		(0.7	)		(21.6	)		—			(35.5	)
Cost of product sales		(14.2	)		—			—			(0.9	)		—			(15.1	)
Selling, general and administrative expenses		(10.7	)		(3.3	)		(5.2	)		(13.7	)		(16.9	)		(49.8	)
Stock-based compensation expense		(0.7	)		(0.4	)		(0.3	)		(0.5	)		(4.1	)		(6.0	)
Depreciation and amortization		(9.1	)		(1.6	)		(1.6	)		(6.1	)		(1.1	)		(19.5	)
Segment operating income (loss)		11.1			23.8			4.8			0.8			(22.1	)		18.4
Net operating income																$	18.4
Total capital expenditures for the six months ended June 30, 2023	$	4.5		$	1.6		$	1.6		$	9.0		$	1.5		$	18.2

Geographic Information

Geographic information for revenue is set forth below:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
	(in millions)				(in millions)
Total revenue
UK	$	56.8	$	61.8	$	104.0	$	110.8
Greece		4.6		5.3		10.7		10.9
Rest of world		14.2		12.3		24.0		22.6
Total	$	75.6	$	79.4	$	138.7	$	144.3

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:

	June 30, 2024		December 31, 2023
	(in millions)
UK	$	92.4	$	91.9
Greece		13.9		15.3
Rest of world		26.5		22.4
Total	$	132.8	$	129.6

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