Inspired revenue up 31% in Q3 2023 financial results
The company reported an increase in revenue during the quarter, alongside the introduction of products and partnerships.
Inspired Entertainment has released its financial results for the third quarter ending 30 September 2023.
For Q3 2023, Inspired reported revenue of $97.5m, representing a 31% surge compared to the same period in the previous year.
This growth was reportedly attributed to strong performance in the company’s Interactive segment and increased sales in Low Margin Gaming Hardware.
Lorne Weil, Inspired Executive Chairman, provided the following information:
– “For the first half of 2023, the net impact to adjusted EBITDA from the restatement was effectively zero, with a $1m decrease in previously reported results in Q1 offset by a $1m increase in Q2.”
– “The impact to our adjusted EBITDA for the full year 2022, was a decrease of $0.6m, from $99.6m to $99.0m, or less than 1%. Adjusted EBITDA margin for Q3 was 27%, but excluding Low Margin Gaming Hardware sales, the margin was 36%, compared to 37% in the prior-year quarter.”
The Interactive segment saw a 28% increase in revenue and a 55% rise in adjusted EBITDA year-over-year on a constant currency basis, indicating robust growth and scalability.
Interactive also unveiled the Hybrid Dealer, a new iGaming product and a partnership agreement with the National Basketball Association (NBA) to develop NBA-themed Virtual Sports games.
Looking ahead, Inspired anticipates that Q4 revenue and adjusted EBITDA will align with current consensus estimates. Interactive reported that adjusted EBITDA for Q4 would have been higher if not for a ransomware attack on the company’s IT systems.
Weil added: “In our land-based operations, which includes our Gaming and Leisure segments, we’ve completed the deployment of our new ‘Vantage’ cabinet across two of our largest licensed betting shop customers, recording another $22.7m of low-margin terminal sales in Q3. We continue to see approximately 11% year-over-year revenue per machine increases with these new terminal deployments.”
Inspired’s revenue reached $80.4m for Q2 2023, reflecting a 13% increase year-over-year. Despite this growth, net income experienced a 43% decline. The company’s adjusted revenue totalled $76m, growing by 7% compared to the previous year’s second quarter.
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