[bsa_pro_ad_space id=1 link=same] [bsa_pro_ad_space id=2]

Skip to Content

Supplier News

UK – Inspired positioned for growth following four huge deals

By - 13 February 2017

Inspired Entertainment has followed up huge deals in Las Vegas, Macau and Colombia, towards the end of last year with another huge breakthrough in Greece where it will soon supply nearly 4,000 terminals.

The news came as Inspired reported its first quarter results where revenue increased $2.4m on a constant currency basis, offset by adverse currency impacts of $6.2m, resulting in a reported decrease in revenue from $30.8m to $27m. Server-based gaming revenue increased by $2.3m on a constant currency basis, comprised of growth in hardware sales of $1.5 million and growth in service revenue of $0.9m. This was offset by an adverse currency impact of $4.6m, resulting in a reported decrease in SBG revenue from $22.3m to $20m.

On a constant currency basis, Virtual Sports revenue increased by $0.1m. Growth in revenue of $0.4m was mainly offset by a decline in license revenue due to roll-off of revenue recognition of legacy contracts. On a reported basis, Virtual Sports revenue decreased by $1.5m due to an adverse currency impact of $1.6m.

Luke Alvarez, CEO and President of Inspired, said: “Strong performance in our Server Based Gaming estate and continued expansion in Virtual Sports recurring revenue drove growth in constant currency revenue and Adjusted EBITDA in the quarter. Despite the dramatic impact of foreign exchange rates following Brexit, our constant currency operating performance demonstrates the strength of the fundamentals in our business even before the launch of certain key new markets later in the year. We look forward to continuing the expansion of our geographical footprint throughout 2017. We are excited about all the things we accomplished in the first quarter and look forward to the ramp up of these initiatives as well as other initiatives we have undertaken since the end of the quarter.”

Lorne Weil, Executive Chairman of Inspired, added: “We believe our solid performance this quarter positions us well as we pursue opportunities in new jurisdictions through existing and, potentially, new distribution channels. Our excitement about our growth prospects continues to build.”
During the first quarter Inspired’s world-leading Virtual Sports product successfully passed technical field trials with the Nevada Gaming Control Board and a full product portfolio is expected to be available in sportsbooks across Nevada during calendar 2017, with the first quarter including the early-stage ramp up.

Inspired entered into an exclusive deal with LT Game Macau, one of the leading gaming and casino providers in Macau and the Asia Pacific region, which is expected to lead to the deployment of its Virtual Sports content to LT Game’s ETG self-service terminals.

Inspired entered into a key brand partnership and licensing deal with NBA Hall of Famer, Shaquille O’Neal. As part of the deal, Shaq was confirmed as the brand ambassador for Inspired’s Rush Basketball Virtual Sports game, which is expected to be launched globally in calendar 2017.

As part of an exclusive launch deal, Mike Tyson branded boxing products launched online and in retail venues in the UK with Betfred. Mike Tyson Slots, Roulette and Blackjack will be complemented by Mike Tyson Rush Virtual Boxing, which is expected to launch in multiple countries in calendar 2017.
Inspired’s expansion into Mobile continued with launches of new slot games and on-demand Virtual Sports. Inspired’s Mobile games are now available to UK customers of William Hill, Gala Coral, Paddy Power, Betfred, Bet365 and Ladbrokes.

Following regulatory changes, Inspired is ready to commence Virtual Sports deployment in Poland and anticipates that its full suite of virtuals products will be available to operators in 2017.
In a deal which extends to 2019, Fortuna will deploy Inspired’s Virtual Sports content to over 200 Polish retail venues and online.

Subsequent to the first quarter, Inspired has recorded these milestones, Inspired commenced the deployment on a trial basis of SBG terminals with OPAP in Greece, which will eventually lead to a rollout of over 3,900 terminals. OPAP and Inspired entered an agreement whereby Inspired’s full suite of Virtual Sports products are expected to be deployed into nearly 4,500 OPAP venues during calendar 2017.

Hardware revenue exhibited growth of $1.5 million on a constant currency basis due to additional SBG sales in Greece, UK LBO and Colombia. This increase was partially offset by adverse currency rate movements of $0.4m, resulting in reported hardware revenue increasing by $1.1mfrom $0.7m to $1.8m.
Average Installed Base increased two per cent from the year ago period to 26,767 due to continued UK market growth and additional SBG installs in Colombia.

Virtual Sports live customers increased by six from 68 to 74 in the interim period, including new RGS customers.

Share via
Copy link