Inspired Entertainment has released its Q4 and FY2023 figures, for the period ending 31 December 2023.
Starting off with Q4, gaming revenue fell 3% annually to $35.8m, no doubt pulled down by the 12% drop in virtual sports from $14.7m to $12.9m.
Although the interactive division almost doubled, with growth of 49% when compared to the year prior, this was only for a total of $8m.
This led total company revenue, when including low-margin gaming hardware sales, to reach $81.2m, an increase of 6%.
According to the Q4 report, net operating income fell 20% to $9.3m, while net income fell 100% to $0.0m flat. Meanwhile, adjusted EBITDA rose 3% to $26.5m for Q4.
Lorne Weil, Inspired Executive Chairman, said: “We closed out 2023 with solid results, in line with our expectations.
“Our fourth quarter performance capped off a strong year, fueled by our successful strategic focus on scaling our higher-margin digital verticals alongside steady growth in our land-based operations.”
The full year
When looking at FY2023, overall revenue rose 15% to $323m.
This was supported by a 1% increase in gaming to $112m, a 4% rise in virtual sports to $56.2m, a 1% increase in leisure to $96.3m and finally a 35% growth in interactive to $27.9m.
Despite this, net operating income fell 13% when compared to the figures from last year, for a total of $39.9m and net income fell 63% to $7.6m.
The total company adjusted EBITDA when looking at the yearly figured rose 2% to $100.5m and a margin of 31%.
Weil emphasised how: “When looking at the performance of the virtual sports business, it’s important to keep the life cycle of the product in context, given how the popularity of virtual sports dramatically accelerated during Covid on the back of an industry-wide tailwind for iGaming.
“By the end of 2022, the strong virtual sports quarterly sequential growth flattened out, and recently began to moderate over the past few quarters.
“Looking ahead, we see several catalysts for future growth as we expand our content offerings to include NBA and NFL-themed products, catering to an expanding customer base including North America and Latin America.”
Highlights
Some business highlights from Inspired include its Hybrid Dealer product, offering tabled and gameshow content, which launched in New Jersey through BetMGM.
The company agreed to integrate its virtual sports products on the Kambi sportsbook platform, as well as launch an NBA-themed virtual game in Q4 2024.
Finally, Inspired expanded its partnership with FanDuel to deliver its iGaming content in Ontario, Pennsylvania, Michigan and New Jersey.
As for the UK, Inspired extended its contract with Parkdean Resorts, a holiday park operator.
