Inspired Entertainment Inc has reported financial results for its fiscal year ended September 30, 2018. The headline figures show 2018 revenue ahead by 15.4% driven by growth across business segments resulting in net loss narrowing significantly year-on-year. Adjusted EBITDA for 2018 increased 32.9 per cent to $54.1m.
Total revenue for the year ended September 30, 2018 increased by $18.8m year-on-year, or 15.4%, to $141.4m on a reported basis. Favorable currency movements accounted for $7.8m of the increase, which was partly offset by a $1.6m decrease due to six fewer days in the 2018 period. On a like-for-like basis, revenue increased by $12.6, or 10.4%.
Server-based gaming (SBG) revenue, meanwhile, increased by $9.9m, or 11.3%, on a like-or-like basis, comprised of growth in service revenue of $15.1m offset by a reduction in hardware sales of $5.2m.
“During the fiscal year, we were able to perform well across all segments and successfully strengthen our balance sheet, reduce our interest rate and add cash and undrawn capacity under our senior bank debt,” said Stewart Baker, Executive Vice President and Chief Financial Officer of Inspired. “We believe this focus on strengthening our operations and our balance sheet in order to improve free cash flow will help us to deliver on our goals and strategic priorities.”
Lorne Weil, Executive Chairman, noted: “In all measures, we are pleased with our performance in fiscal year 2018. Both of our segments delivered revenue growth and we were able to increase our adjusted EBITDA margin by 475 basis points, leading us to report adjusted EBITDA of $54.1m, up 32.9% from $40.7m last year.”
He continued: “While we continue to focus on maintaining that growth, we are also intentionally targeting growth across our businesses in North America. I am optimistic that we can execute on this strategy much as we have done in Greece where, in less than two years, we have grown the Virtual Sports business exponentially, recently adding another channel of content, and have become the largest supplier of terminals in the marketplace.
“We believe North America will ramp up and become a larger part of our business. We recently launched Virtual Sports for our first major US lottery customer and we received a warm reception and positive feedback on our products at the G2E tradeshow in Las Vegas. North American lottery and gaming operators are looking for innovative new products that have proven performance, and with Greece as an example, we believe our products will scale.”