Inspired reports revenue increases in all segments

Inspired Entertainment’s newly released Q2 results reveal the gaming content, technology and services provider’s revenue across all segments.

Against the same three-month period last year, revenue increased by 24 per cent in gaming (six per cent in adjusted revenue), eight per cent in virtual sports and 28 per cent in interactive.

Total revenue for the quarter stood at $80.4m, with an adjusted net income of $5.3m or $0.18 per diluted share, and an Adjusted EBITDA of $26.2m.

“Revenue grew in each of our business lines during the second quarter reflecting solid underlying fundamentals. The digital businesses once again generated record reported quarterly revenue and are steadily contributing a greater proportion of our earnings and cash flow,” said Lorne Weil, Executive Chairman of Inspired.

“Interactive revenue increased 28% year-over-year on a functional currency basis, posting a quarterly record as we increased our footprint through new customer launches as well as revenue growth from existing customers. Virtual sports produced record reported quarterly revenue of $15m with very high conversion to earnings and cash flow, as Adjusted EBITDA grew faster than revenue. It is also worth mentioning that we successfully negotiated long-term extensions for our virtual sports strategic partnerships with both bet365 and Paddy Power.

“In our land-based business, recent initiatives both during the quarter and subsequent are expected to add to future growth. For instance, we are beginning to benefit from the sales of our new Vantage terminals. Through last week with over 40% of the installations complete, early results indicate an improvement in revenue per machine in the high single digits with potential to reduce operational costs.

“In addition, during the quarter we entered into $4.4m of ‘low margin’ terminal sales, whereby product sold today will secure longer term recurring revenue streams utilising an asset-light model. We anticipate additional sales of this nature during the second half of the year.

“We have an exciting pipeline of new products and further enhancements across our businesses. Most significant is that we are on target to deliver our new National Football League (NFL) product in time for the start of the upcoming season. We continue to be very excited about the potential of our offering and the experience the product will deliver to NFL fans globally. In both virtual sports and interactive, we remain more convinced than ever that we are in the early stages of an expanding global opportunity.”