Innova reveals ‘solid’ growth in third quarter

Innova Gaming has cited an increase in the number of machines deployed during the past year as the main reason for an increase in finances in the three months to September 30.

Revenue in the third quarter amounted to $5.6 million (€5.1 million), up from €5.3 million in the corresponding period last year.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased from $900,000 to $1.4 million, while adjusted earnings per share also improved from $0.01 to $0.04.

Gross profit for the quarter came in at just under $5 million, up from $4.8 million last year, while Innova recorded net income of $300,240, compared to a loss of $381,770 last year.

In addition, average win-per-unit (WPU) for the company’s LT-3 ticket dispenser machines stood at $142, while average revenue per unit (ARPU) came in at $29.

The third-quarter results place revenue for the nine months through to the end of September at $16.9 million, up from $15.4 million at the same point last year, while adjusted EBITDA climbed from $3.7 million to $4.1 million.

Gross profit for the nine-month period amounted to $115 million, compared to $13.6 million last year, while net income came in at $1.4 million, up from a loss of $1.7 million.

Richard Weil, chairman and chief executive of Innova, said: “During Q3, we generated solid Adjusted EBITDA and Adjusted EPS growth as units deployed over the past year ramped to a higher level of ARPU.

“While the LT-3 sales process can take time, once installed, the units generate strong recurring revenue that benefits Innova, lotteries and the charities they support.”

Related article: Innova chief hails ‘matured’ company after Q1 growth