Inspired Gaming reports dip in sales for Q2
Inspired Gaming has announced its sales for the second quarter of 2017 dropped to $28.1m (€25.8m) from $30.4m (€27.9m) for the same period in 2016, attributed to adverse foreign currency impact.
The company saw sales growth of 9.1%, at a constant currency rate, driven by its server based gaming (SBG) growth and virtual sports sales. However adverse foreign currency rates caused a real dip in sales of 7.8%. Its SBG sales increased by $1.4m for the quarter, on a constant currency basis, due to hardware sales growth and drop in service sales. An adverse currency impact of $3.6m resulted in a real decrease in SBG sales from $21.8m to $19.6m.
Meanwhile its virtual sports sales increased by $1.4m at a flat currency rate, but the actual adverse currency impact of $1.6m caused a decrease of $0.2m with sales dropping from $8.6m to $8.5m year on year. The company's net operating income was down from $1.7m to a $2.1m loss for the period, due primarily to the decline in reported revenue and increases in costs associated with hardware sales.
Inspired president and chief executive officer, Luke Alvarez said: “We continue to be excited about the momentum in our business. We delivered solid volume growth in our SBG estate and rapid growth in our Virtual Sports business driven both by increasing market penetration and improved performance from existing operators.
“We are also pleased that growth accelerated as the quarter progressed, driven by multiple new customers coming on stream. The launch of both of our lines into the Greek lottery market is a key milestone for our business and should be a material contributor going forward.”
Inspired Gaming expanded its virtual sports suite with Italian operator Isibet last year, as well as launching on Ladbrokes and deepening its partnership with Paddy Power Betfair.
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