Inspired Entertainment posted double-digit revenue growth coming in at $80.4m for the three months ended June 30, 2023, marking an increase of 13 per cent for the three-month period ended June 30, 2023.
Gaming revenue came in at $31.5m, an increase of 24 per cent whilst virtual increased by seven per cent to $7.4m and interactive grew by 28 per cent to $7.4m.
“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 per cent 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.”
Weil continued, “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 per cent 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 utilizing an asset-light model. We anticipate additional sales of this nature during the second half of the year.”
Weil added, “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.”
Weil concluded, “The long-term fundamentals and health of the business remain very strong. We are optimistic about the compelling growth dynamics in our digital markets as a wider audience engages with online betting and gaming and new jurisdictions continue to open up. Combined with a resilient land-based business and retail customer base, our diversification and proven ability to expand our business will enable us to deliver further progress against our omni-channel strategy combining our high-margin, capital efficient digital businesses with our steady land-based businesses.”
Inspired signed a long-term contract extensions as the provider of Virtual Sports products with prominent online B2C operators Paddy Power and bet365. It successfully launched iGaming content with Caesars Sportsbook & Casino in Pennsylvania and FanDuel in Michigan and Pennsylvania. In terms of online games it released Gold Cash Freespin Megaways, 1001 Arabian Nights and launched operator-branded exclusive Big William Hill Fortune online title.
In gaming, it commenced installation of Vantage terminals with over 950 new Vantage terminals going into venues of three major customers, with a total of 6,500 expected to be live by the fourth quarter.
In partnership with Cristaltec, a leader in design, production and distribution of games and devices for the amusement with prize sector in Italy, the Company announced the installation of the new Cristaltec VLT cabinets running on Inspired’s platform in Codere, a leading Spanish multinational company in the private gaming sector across Europe and Latin America. Codere is the seventh concessionaire to adopt Inspired’s platform in Italy.