Feb. 19 at 12:20 AM
$GENI CEO letter: Most gamers are into Predictive not sports betting. Don't believe me, look at Polymarkets valuation:
$11 billion since 2020. Geni valuation:
$1.4 billion since 2020 listing. Which is the better business
GENI share price:
Since Legend Acqn: -50-60%
1 year: -37%
5 year: -70%
Inception: -37%.
GENI was targeting Group Revenue of
$1.2 billion but after the LEGEND acqn it only increases to
$1.55 billion. Hardly a transformational LEGEND acqn or endorsement of doing this acqn is it? Again the focus is increasing revenue at the expense of real profit growth not Adj EBITDA but EPS growth.
GENI is acting like it is a start up, aiming for revenue growth and increasing users on a bet that gamers will do sports betting when evidence shows otherwise. What counts is net profit growth, cash flow growth and EPS growth. The Legend acqn is a shocker. The CEO letter is full of maybes.