Inspired cuts losses in second quarter

Inspired Entertainment has reported a year-on-year increase in revenue for the second quarter, while the company also cut net loss by 94.5% in the period.

Revenue in the three months to March 31 amounted to $37.5m (€31.6m), which is 33.5 % more than $28.1m in the corresponding quarter last year.

Net operating loss was cut by 60.1% from $2.1m to $900,00, while net loss also improved from $9.1m to $500,000.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased 43.4% year-on-year to $12.4m, while net loss per diluted share was cut from $0.45 to $0.02.

Lorne Weil, executive chairman of Inspired, said: “Our second quarter results were strong, with our adjusted EBITDA margins growing from 30.8% in Q2 2017 to 33.2% in Q2 2018; this shows that we are realising scale benefits.

“Our sustained growth in Greece and our recent virtual sports contract win with the Pennsylvania Lottery demonstrate that our growth prospects are accelerating as our products gain traction in new jurisdictions.

“Our existing virtual sports geographies continue to yield growth opportunities as well, with expanded deployments including in Greece, Italy, Scandinavia, Ireland, and the UK.

“We also expect that our previously announced 1st Down Virtual Football game will launch with US gaming and lottery customers in the middle of 2018.

“In mobile, we have launched our RGS with multiple new customers, including BetVictor and most recently SNAI.

“Growth momentum in our business is strong across multiple dimensions.”

The results announcement come after Inspired last week confirmed a number of changes to its senior management team, including the departure of Luke Alvarez as chief executive and president.

The company formed the ‘Office of the Executive Chairman’, which will consist of executive chairman Lorne Weil; president and chief operating officer Brooks Pierce; executive vice-president and chief strategy officer Daniel Silvers; and executive vice-president and chief financial officer Stewart Baker.

In connection with the new Office, Brooks Pierce has been named president and chief operating officer.

Related article: Inspired makes sweeping management changes