Inspired reports record YoY Q2 revenue aided by virtual sports growth

Inspired Entertainment reveals Q2 results for 2022
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Virtual sports and gaming firm Inspired Entertainment has reported Q2 financials for the period ended June 30, 2022, revealing record revenues of $71.3m.

Representing a 72% rise in revenue from the same period last year (Q2 2021: $41.5m), Inspired posted another record in the form of its virtual sports revenue, which stood at $14m, up 71% year-on-year.

Meanwhile, the firm’s net income in Q2 FY2022 was $7.5m, compared to a $43.8m loss during the same period last year, and its adjusted EBITDA increased by 227% YoY.

“This quarter’s underlying performance is a testament to the resiliency of our diversified business model as well as what we perceive to be the continued strength in consumer spending across our segments – notwithstanding ongoing macro trends,” said Lorne Weil, Executive Chairman of Inspired.

Weil continued: “The long-term fundamentals and health of the business are the strongest they have been in my tenure. The growth dynamics of our markets remain compelling as a wider audience engages with online betting and gaming and new jurisdictions open up, creating further opportunities.

“With the return of our retail customer base, we remain confident that our diversification and proven ability to grow our business will enable us to deliver further progress against our strategy.”

During the second quarter of 2022, Inspired also received an Interactive Gaming Manufacturer Licence in Pennsylvania to launch its portfolio of igaming content in the state.

Stewart Baker, Executive Vice President and Chief Financial Officer, added: “We are particularly pleased with our second quarter results, given the prevailing perception of headwinds from the macro-economic environment as well as the impact from foreign exchange rates.

“Given our ongoing strong performance in the face of these headwinds, the long-term outlook of the company and the strength of our balance sheet, we have utilized our board-approved share buyback program to repurchase nearly 750,000 shares of Inspired common stock, as of August 9, at an average price of $9.73 per share (before trading expenses).

“Moving forward, we see continued pressure from FX rates, however our underlying business has maintained the same trend. We will continue to be disciplined in our approach to capital deployment, while also focused on executing on our strategic plan to deliver profitable growth, increase cash flows and maximize shareholder value.”

Weil also shed some light on upcoming activity for the group, with a particular focus on North American growth: “We are very excited about the current trends in our business and what’s to come, including our recent interactive launches in Ontario and particularly in Pennsylvania, where we are witnessing strong results with only one customer live and we have several additional customer launches to follow in the year, and the launch of virtual sports with the DC Lottery, our second North American lottery.”

“We are making virtuals history with the first ever women-led virtual soccer product and we have signed baseball legend Mickey Mantle, in addition to our previously announced signing of Babe Ruth, for our Home Run ShootOut game, which is expected to launch in early 2023.”