Fitch Ratings, a provider of credit ratings, research and analysis for global financial markets, during a recent assessment, upgraded Inspired’s corporate rating from a ‘B-’ to a ‘B’ with an outlook rating of stable.
The senior global notes for Inspired were also upgraded from a ‘BB-’ to a ‘B.’
In the rating action commentary, Fitch stated: “The 'B' IDR reflects Inspired's sustained high profitability that translates into free cash flow (FCF) generation capacity and sound organic deleveraging ahead of refinancing approaching in 2026.
“The company's solid financial profile is balanced against its small scale compared with peers and retained high concentration of revenue on the UK gaming market.”
Regarding Inspired’s structural profitability improvements, Fitch found that the company had substantially improved profitability margins in gaming and virtual sports segments.
The report also noted that Inspired had demonstrated strong revenue in 2022, with a 50% year-on-year.
Although Inspired is dependent on the UK market, with over 70% of sales coming from land-based venues in the country, the Fitch report does note that the company has increased geographical diversification through its virtual sports products.
These virtual sports offerings were found to have supported Inspired’s post-pandemic recovery, bringing in double-digit growth.
A recent project was also announced by Inspired and Aristocrat regarding its virtual sports technology.
The National Football League (NFL) would have a virtual sports experience created for them by Inspired, which would see simulation games played between NFL teams.
