Segment Reporting and Geographic Information

12 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Segment Reporting and Geographic Information

27. Segmental Reporting and Geographic Information

Operating segments are identified as components of an enterprise for which separate and discrete financial information is available and is used by the chief operating decision maker, or decision-making group, in making decisions on how to allocate resources and assess performance. The Company’s chief decision-maker is the Office of the Executive Chairman.

The Company’s chief decision-maker reviews financial information presented on a consolidated basis, accompanied by disaggregated information about revenue and operating profit by operating unit. This information is used for purposes of allocating resources and evaluating financial performance.

The Company operates its business along two operating segments, which are segregated based on the basis of revenue stream: Service Based Gaming and Virtual Sports (which includes Interactive). 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 accounting policies of the segments are the same as those described in the “Summary of Significant Accounting Policies.”

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), total assets and total capital expenditures for the periods ended September 30, 2018 and 2017, 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, cash, prepaid expenses and property and equipment and software development costs relating to corporate/shared functions.

Segment Information

Period ended September 30, 2018

	Server Based Gaming			Virtual Sports			Corporate Functions			Total
Revenue:
Service	$	93,161		$	37,763		$	—		$	130,924
Hardware		10,457			—			—			10,457
Total revenue		103,618			37,763			—			141,381
Cost of sales, excluding depreciation and amortization:
Cost of service		(17,975	)		(4,626	)		—			(22,601	)
Cost of hardware		(8,179	)		—			—			(8,179	)
Selling, general and administrative expenses		(15,693	)		(7,503	)		(36,918	)		(60,114	)
Stock-based compensation expense		(261	)		(305	)		(6,858	)		(7,424	)
Impairment expense		(4,715	)		(2,964	)		—			(7,679	)
Acquisition related transaction expenses		—			—			(864	)		(864	)
Depreciation and amortization		(34,142	)		(6,338	)		(1,352	)		(41,832	)
Segment operating income (loss)		22,653			16,027			(45,992	)		(7,312	)
Net operating loss											(7,312	)
Total assets at September 30, 2018	$	103,378		$	69,545		$	34,989		$	207,912
Total goodwill at September 30, 2018	$	—		$	45,818		$	—		$	45,818
Total capital expenditures for the period ended September 30, 2018	$	35,262		$	6,798		$	202		$	42,262

Period ended September 30, 2017

	Server Based Gaming			Virtual Sports			Corporate Functions			Total
Revenue:
Service	$	74,072		$	33,424		$	—		$	107,496
Hardware		15,048			—			—			15,048
Total revenue		89,120			33,424			—			122,544
Cost of sales, excluding depreciation and amortization:
Cost of service		(11,688	)		(4,157	)		—			(15,845	)
Cost of hardware		(10,839	)		—			—			(10,839	)
Selling, general and administrative expenses		(15,569	)		(6,168	)		(36,564	)		(58,301	)
Stock-based compensation expense		(231	)		(261	)		(3,743	)		(4,235	)
Acquisition related transaction expenses		—			—			(11,411	)		(11,411	)
Depreciation and amortization		(26,367	)		(5,587	)		(1,856	)		(33,810	)
Segment operating income (loss)		24,426			17,251			(53,574	)		(11,897	)
Net operating loss										$	(11,897	)
Total assets at September 30, 2017	$	113,692		$	75,975		$	29,356		$	219,023
Total goodwill at September 30, 2017	$	—		$	47,076		$	—		$	47,076
Total capital expenditures for the period ended September 30, 2017	$	22,921		$	7,039		$	2,768		$	32,728

Geographic Information

Geographic information for revenue is set forth below:

	September 30, 2018		September 30, 2017
Total revenue
UK	$	89,626	$	79,991
Greece		23,445		11,668
Italy		18,603		16,598
Rest of world		9,707		14,287
Total	$	141,381	$	122,544

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

	September 30, 2018		September 30, 2017
Total non-current assets, excluding goodwill
UK	$	60,037	$	68,069
Greece		36,175		20,728
Italy		3,368		5,761
Rest of world		3,962		14,189
Total	$	103,542	$	108,747

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