Inspired entertainment has released their Q1 financials ending March. Inspire Entertainment has published its Q1 financials for the period ended Mar. 31, 2023. The results show double-digit growth across both its Virtual Sports segment and Interactive segment.
The total revenue for the group increased by 9% to $66m in Q1 2022 (Q1 2020: $60.6m). Interactive revenue was $6.6m and represented a 24% increase YoY (Q1 2020: $5.3m), as recent investments into new products and platform upgrades began to pay off.
In a quarter that saw the company announce a Partnership, the company’s Virtual Sports revenue was also up 29% on the $11.6m of last year. This is in conjunction with Aristocrat’s multi-year global license agreement with the NFL.
In the first quarter of 2013, Inspired launched its entire suite of games, including V-Play Soccer, V-Play Basketball and multiple operators in Ontario.
The group’s gaming revenues increased by 18% year-on-year to $27.4m (Q1 2020: $23.2m) in Q1, reflecting the ‘continued strength and resilience of the land based businesses’.
Lorne WEIL, Executive Chair of Inspired commented: “The new year has started off strong as we continue to deliver growth double-digits in our digital businesses with high margins and capital efficiency, while positioning land-based businesses to grow steadily, and to maximize cash flow.
Weil added: “During the third quarter, we launched our online Terminator slot game with our UK clients and expect to roll out the game to our European and North American customer base over the next few months. We are excited to see that our Space Invaders slot game is performing well on other platforms as we continue to expand our licensed content portfolio.
“Furthermore we are very proud that after the success of Buffalo Wild Wings online casino slot games in other states, BetMGM released it as a featured title in Pennsylvania.”
The gaming revenue of the group, on the other hand, increased by 18% YoY in Q1 to $27.4m (Q1 2020: $23.2m), reflecting “ongoing strength and resilient in aggregate land-based business”.
Weil concluded, “To say that we are excited about our future is an understatement.” Our land-based businesses provide us with steady growth and significant cash generation. “Our digital business offers a unique combination in the industry, namely high growth, high profitability, and minimal capital investment.”
The Q1 Leisure Revenue of Inspired fell by 13%, YoY, to $17.1m ($19.6m in Q1 2022). This fall was primarily due to the’structured withdrawal of low-margin non-core amusement and prizes vending machines’ that took place in Q3 of 2022 as well as a reduction in the number gaming machines.
Stewart Baker Executive Vice President and Chief Finance Officer, said: “We’re pleased with the first-quarter results and growth across the business, despite currency fluctuations compared to the previous year. Our high-quality earnings are also translating to cash flow.
“During the first three months, we have more than doubled the cash flow generated by our operations in comparison to the previous year. We also increased our cash position to $3m from $7m for the first quarter 2022. We are confident in our strategy, and our ability to continue delivering consistent results that drive shareholder value.
Inspired has recently reaffirmed its commitment to US online casinos by extending the partnership with FanDuel in order to cover the Michigan Market.
