Supplier News

Inspired delivers its best ever revenue in 2023

By Phil - 17 April 2024

Inspired Entertainment reported its best ever yearly revenue with 2023’s total comig in at $323m, up 15 per cent, following fourth quarter revenue of $81.2m, driven by a 49 per cent increase in its interactive segment.

“We closed out 2023 with solid results, in-line with our expectations,” said Lorne Weil, Executive Chairman of Inspired. “Our fourth quarter performance capped off a strong year, fueled by our successful strategic focus on scaling our higher-margin digital verticals alongside steady growth in our land-based operations.”

Mr. Weil added: “Our digital business fourth quarter results continue to be led by the Interactive segment, where revenue and Adjusted EBITDA increased approximately 41 per cent and 39 per cent year-over-year on a constant currency basis, respectively, as we continue to increase our footprint through new customer launches and benefit from the growth of our existing customer base.

“Our Virtual Sports business generated $12.9m of revenue during the fourth quarter. Fourth quarter results are consistent with the third quarter, as second half 2023 trends were driven by a major customer optimising their customer base. When looking at the performance of the Virtual Sports business, it’s important to keep the life cycle of the product in context, given how the popularity of virtual sports dramatically accelerated during COVID on the back of an industry-wide tailwind for iGaming. By the end of 2022, the strong virtual sports quarterly sequential growth flattened out, and recently began to moderate over the past few quarters. Looking ahead, we see several catalysts for future growth as we expand our content offerings to include NBA and NFL-themed products, catering to an expanding customer base including North America and Latin America.

“We continue to benefit from the optimization of our land-based operations and the roll-out of our new ‘Vantage’ terminals. Our land-based business, which includes our Gaming and Leisure segments recorded strong year-over-year revenue growth of six per cent and eight per cent, respectively. During the quarter, we entered into $3.5m of ‘low margin’ terminal sales, whereby product sold today will secure longer term recurring revenue streams utilizing an asset-light model. We continue to see low double digit year-over-year revenue per machine increases with these new ‘Vantage’ cabinet deployments across two of our largest licensed betting shop customers. In our pubs business, we expect to benefit from more of these ‘Vantage’ placements during the back half of 2024. As we look ahead, the success of our ‘Vantage’ cabinet rollout gives us confidence in ongoing growth across our land-based gaming portfolio.”

Mr. Weil concluded: “As the global online betting and gaming ecosystem continues evolving, with some new markets opening and consumer adoption increasing, we see opportunities for continued growth. Our market-leading Virtual Sports products, distinctly innovative iGaming offerings like Hybrid Dealer, and unmatched content portfolio position us at the head of this digital transformation. We are excited about the opportunities ahead as we seek to capitalize on the expanding online betting and gaming markets globally.”

During the last quarter, Inspired unveiled its innovative new iGaming product, Hybrid Dealer, a unique product offering players branded RNG-generated table and gameshow content for online play seamlessly blending physical and digital elements offering operators unlimited branding and customizable possibilities that are unique from game to game. Launched the product with BetMGM in New Jersey.

It expects to launch NBA-themed Virtual Sports game in the second quarter of 2024 and announced agreement with Kambi Group to integrate Virtual Sports products in the Kambi sportsbook platform.

It also expanded its partnership with FanDuel in North America to deliver iGaming content across Ontario, Pennsylvania, Michigan and New Jersey.