Inspired Entertainment has reported financial results for its third quarter, ended June 30, 2018. They show revenue ahead by 14.3% from $32.3m in Q3 2017 to $36.9m. Updating investors, executive chairman Lorne Weil stated: “Our third quarter performance is a testament to the strength of our underlying core business and our ongoing strategy to diversify our revenue base not only across product and service areas but across geographies as well.
“With our third quarter Adjusted EBITDA growing 61% year over year to $15.5m and our adjusted EBITDA margins growing to 42% from 30%, our business is building as envisioned. Our products continue to deliver and gain traction while our margins are benefiting from scale.”
Weil added: “We are very pleased with the additional machine installation and the launch of an additional Virtual Sports channel in Greece. We believe our strong performance in Greece is sparking interest in our innovative games and technology from operators around the world, further diversifying our geographic exposure. We expect this to bode well for our products in North America, where we will be launching Virtual Sports with the Pennsylvania Lottery later this week.”
The firm also confirmed the completion of a circa $150m refinancing of its borrowing facilities. A majority of the net proceeds are being used to prepay its existing senior term and revolving credit facility and pay accrued and unpaid interest thereon plus any related premiums, fees and costs.
“After the quarter end, we successfully refinanced our senior bank debt and extended our maturity at a lower cost,” said Stewart Baker, executive vice president and CFO. “This should not only strengthen our balance sheet, it should also lower our cost of capital. Our net debt/Adjusted EBITDA ratio is now 2.5x trailing 12-month Adjusted EBITDA, which we believe will allow us more flexibility to capitalize on meaningful opportunities to grow our business.”
In a separate statement the firm confirmed that later this week will see the launch of its Virtual Sports products deployed at retailer locations in Pennsylvania following a technology project with the Pennsylvania Lottery and Scientific Games.
Initially, Stock Car Racing and the new 1st Down Virtual Football will be offered. Scheduled events will be streamed into a mixture of retail venues and bars and taverns throughout Pennsylvania via two dedicated channels throughout the day. The product offering will be branded Xpress Sports by the Pennsylvania Lottery.
Said Weil: “We are delighted to announce this key milestone for the Pennsylvania Lottery and Virtual Sports fans in the state. “Through an integration with the Lottery’s gaming system, we’re introducing the thrill of Virtual Sports betting for the first time to Pennsylvanians, and we’re gratified to have been chosen by the Pennsylvania Lottery to deliver these new gaming entertainment products to its valued players with our high quality Virtual Sports graphics and animation.”