Inspired Entertainment has reported transitional financial results for the three-month period ended December 31, 2018. The financials, which are released ahead of the firm’s Q1 results in May, indicated good growth in EBITDA and hinted at further opportunities to build on activities in North America.
Total Revenue for the three months ended December 31, 2018 was $30.7m on a reported basis, while revenue for the period increased 2.3% year-over-year on a functional currency (£) basis, driven mainly by server based gaming (SBG) growth in Greece and Italy and offset by lower hardware sales in the UK and software license sales in Greece.
Participation and other recurring revenue across the company, which excludes hardware sales and software license sales, increased 9.1% year-over-year and remained virtually flat quarter-over-quarter on a functional currency (£) basis. The exchange rate for GBP:USD negatively affected the reported results year over year.
Adjusted EBITDA for the three months ended December 31, 2018 was $10.5m, a year-over-year increase of 11.3% on a functional currency (£) basis and an increase of 6.4% on a reported basis. Adjusted EBITDA margin increased to 34.1%, from 31.3% in the prior year, primarily as a result of overhead savings due to lower staff related costs.
“As we complete our transition to a traditional calendar year reporting cycle, we’re expecting good performance in the first quarter of 2019 driven by continued growth in Greece and Italy, as well as Interactive and additional hardware sales opportunities in conjunction with a reduced overhead expense base,” said Lorne Weil, Executive Chairman.
“We had a tremendous showing at last week’s ICE trade show where we introduced our Virtual Basketball and gave a sneak peek of our new Valor gaming cabinet, which we expect to drive additional hardware sales opportunities in new jurisdictions. We continue to believe our content and solutions provide an ideal platform for growth and, based on our proven success throughout Europe, we see a unique opportunity to build our VLT, virtual sports and interactive businesses in North America.”