Inspired Entertainment released its unaudited financial results for the three-month period ending December 31, 2019, and the full year. Total revenue for the 12 months rose from $140.7 m by 9 percent to $153.4 m, while the adjusted EBITDA fell from $54.7 m year-on-year to $49 m by 10.4 percent.
Executive Chairman Lorne Weil claimed to be “very pleased” with Q4 results which, he said, illustrated the excellent progress the company has made in its ongoing business plan to mitigate the effects of the Triennial Implementation in the UK.
He demonstrated to investors: “We are excited about the growth prospects we are seeing across the company. We sold our first units in Illinois during the fourth quarter and have seen outstanding performance with all completed trials having resulted in follow-on orders.
“Our Virtual Sports business had its strongest ever quarter and we saw growth across the board. The popularity of our gaming and virtuals content continues to fuel the growth in our Interactive business and we are seeing impressive results from the recent launch of six new Interactive customers in North America.”
He concluded: “With the uncertainty surrounding the Triennial behind us, we are delighted to see these positive trends across our business thus far in 2020, where, in addition to the annualisation of the Acquired Businesses (Novomatic Gaming Technology Group), we continue to see upside from North American penetration, accelerated UK pub and leisure digitisation, additional customers coming onboard in Virtual Sports and Interactive, as well as the realisation of expected synergies.”
The first set of installations of the firm’s Valor terminals in North America was among the highlights for 2019. Inspired sold 116 units in Illinois during the fourth quarter, and sold a further 144 devices through March 10, 2020 in the first quarter. “Nearly every major Illinois operator has trialled Valor and all completed trials have resulted in follow-on orders,” it noted.
Inspired was also one of the first vendors to be accredited by the Illinois Gaming Board to include the increased $4 stakes and up to $1,199 prizes which were allowed in January 2020 for each of its games.
Turning to its Virtual Sports service, the company said the number of operators in this category had risen to 111 live worldwide (as of December 31, 2019), up 11.0 percent from last year’s same period.
New Virtual Sports content was also introduced in the time including Virtual Football through two dedicated channels on bet365.com and 20 Virtual Sports channels through an integration of sportsbooks on bet365.com in New Jersey. BetVictor distributed Virtual Basketball through two dedicated platforms while in November 2019 the Pennsylvania Lottery released Virtual Horse Racing “Derby Cash” at more than 8,500 venues.
Other highlights include the multi-year exclusive Flutter deal and the addition of six main North American clients. Inspired went live with four New Jersey clients including Caesars, Golden Nugget, Mohegan, and Resorts and two Canadian clients–Loto Quebec and British Columbia Lottery Company.