Gaming provider Inspired Entertainment has released its financial results for the third quarter of the year, revealing a steady recovery and growth.
Inspired Revenues Increase Across All Its Segments
The company has scored 29% more revenue than it did for the same nine-month period last year. Its earnings for the period stand at $77.6 million. Inspired Entertainment’s net income increased to $25 million. Its adjusted EBITDA went up by more than 5 million, compared to 2020, currently sitting at $30.1 million.
Inspired’s Virtual Sports segment’s revenue increased from $8.3 million to $10.5 million throughout the year. This growth was supported by the tendency of bettors to prefer betting online. On the contrary, Inspired’s Retail Virtuals earned half a million less revenue.
Inspired’s Interactive revenue saw an even more substantial increase, almost doubling the earning. Prior to 2021, the segment’s revenue sat at around $3.5 million which has now increased to $6.1 million. New content and regular promotions and deals played a huge part in that figure.
Inspired’s Virtual Sports and Interactive segments marked a Q3 operating income of $7.6 million and $2.3 million respectively.
Interactive’s Gaming Service and Leisure revenue also saw an increase as the relief in the COVID-19 pandemic made it possible for more retail customers to return.
The Gaming Service revenues increased by $1.8 million. It had an operating income of $5.1 million for the third quarter.
Lastly, Inspired’s Leisure revenue more than doubled up, ending at $33.4 million, having an operating income of $9 million.
Baker and Weil Are Excited by the Results
Inspired’s executive vice president and chief financial officer, Stewart Baker, spoke about the results and said that they far exceed the initial expectations.
“Between the strong retail gaming outlook, robust igaming trends, and the overall improvement in our cost structure coming out of COVID-19, we were able to generate $19.8m in operating cash flow and increase our cash position by $12.6m during the quarter,” Baker said.
He added that Inspired had a cash balance of $37.1 million by the end of September this year, which is a good financial position for the company in order for it to enact its strategic plan and maximize shareholder value.
Inspired’s executive chairman, Lorne Weil, addressed the investors, mentioning that he is pleased by the results. He noted that the Inspired of today is “much stronger, leaner and more efficient,” while maintaining significant momentum and growth opportunities.
Weil is firm that North America will continue to be one of the most important regions for the company’s future growth. He mentioned the recent multi-year deal with the MLBPAA attests to the opportunities lying on the American market.
“We continue to see significant opportunities in the North American gaming landscape, and we believe we are well-positioned based on our content-driven strategy and depth of relationships,” Weil concluded.