The finance division of the data, technology, and broadcast company experienced growth in all areas of its business during the period. However, the most significant increase was seen in its betting arm, with revenue rising by 26.8%. This growth was attributed to higher customer utilization of event content and increased business with existing clients. The company also noted that renewed partnerships with major clients would drive further growth.
Genius Sports, the provider, extended its partnership with Football DataCo, which manages data rights for the English Premier League, as well as renewing deals with the National Football League and the XFL. According to Genius co-founder and CEO Mark Locke, the company has reached a significant turning point in its business. The first-half financial performance and renewed partnerships have validated the core strategy, differentiated the technology stack, and proven the sustainable business model. This success in the second quarter demonstrates a balanced approach in delivering short-term results and accelerating long-term growth and profit targets for Genius Sports.
Genius Sports reported that group revenue for the three months ending June 30 reached $86.8 million, up from $71.1 million in the same quarter last year. Revenue from the betting-related business generated $56.9 million in the second quarter. Revenue from media technology, content, and services climbed by 22.4% to $18.4 million, primarily driven by growth in the Americas. The company also reported a 3.0% increase in sports technology and services revenue to $11.6 million, primarily due to higher revenue from non-cash consideration contracts.
In terms of spending, the cost of revenue increased by 0.7% to $62.2 million in the second quarter. However, operating expenses decreased by 33.7% to $32.5 million, mainly due to a reduction in general and administrative spend by 39.3%. Genius also noted some finance costs, but these were offset by a $1.5 million gain on foreign currency. As a result, finance income reached $907,000 for the quarter.
Despite the increase in revenue and decrease in operating costs, the pre-tax loss widened from $5.3 million to $6.9 million due to a higher gain on foreign currency registered by Genius in the previous year. The company paid $4.0 million and recorded a $588,000 gain from equity investment. This resulted in a net loss of $10.3 million, wider than the previous year’s $4.8 million loss. However, Genius was able to achieve an 87.2% rise in adjusted EBITDA to $15.7 million.
Looking at the first half of the year, Genius Sports recorded revenue of $184.1 million, a 17.2% increase from the previous year. Betting activity contributed $121.6 million to the total, showing a 28.6% year-on-year growth. Revenue from the media business slightly increased by 2.5% to $40.1 million, while sports revenue fell by 4.3% to $22.4 million. Revenue costs were 8.2% lower at $149.9 million, and operating expenses decreased by 31.7% to $65.5 million. Finance expenses amounted to $852,000, compared to a $59.8 million gain in the previous year, resulting from a higher foreign currency gain. The net loss for the first half was $35.5 million, lower than the previous year’s $45.0 million loss. Adjusted EBITDA increased by 333.2% year-on-year to $23.7 million.
Based on the growth achieved in the first half of the year, Genius has raised its guidance for the full year. Revenue is now expected to reach $410.0 million, with adjusted EBITDA of $52.0 million for the 12 months ending December 31. This is higher than the previous guidance of $400.0 million and $49.0 million, respectively.
