Inspired reports strong growth as part of Q2 2018 Results
Revenue in the second quarter increased 33.5% compared to the same quarter last year, principally driven by growth in Server Based Gaming (“SBG”) service revenue.
Net loss narrowed significantly, from $9.1 million to $0.5 million, as Adjusted EBITDA¹ increased 43.4%.
Subsequent to the end of the quarter, Inspired entered into an agreement to deploy its Virtual Sports products to the entire lottery network of over 9,000 retailers throughout Pennsylvania in a recently-announced, groundbreaking deal with the Pennsylvania Lottery.
Total SBG deployment of 31,616 terminals live (as of March 31, 2018) is 16.4% higher than as of the same date last year, driven by volume rollout in UK and Greece. An additional 1,035 VLTs were contracted in Greece during the 2nd quarter from OPAP, bringing the total number of contracted machines in Greece to 7,395, resulting in Inspired being the largest provider in Greece;
Number of Virtual Sports operators increased to 94 operators live worldwide (as of March 31, 2018), up 20.5% from the same time last year, including launches in the quarter, with six operators in New Jersey carrying Inspired’s online and mobile Virtual Sports content.
Mobile RGS integrations increased from six to 22 year-on-year.
Our second quarter results were strong, with our Adjusted EBITDA1 margins growing from 30.8% in Q2 2017 to 33.2% in Q2 2018. This shows that we are realizing scale benefits,” said Inspired Executive Chairman Lorne Weil. Mr. Weil continued, “Our sustained growth in Greece and our recent Virtual Sports contract win with the Pennsylvania Lottery demonstrate that our growth prospects are accelerating as our products gain traction in new jurisdictions.”
Mr. Weil continued, “Our existing Virtual Sports geographies continue to yield growth opportunities as well, with expanded deployments including in Greece, Italy, Scandinavia, Ireland, and the UK. We also expect that our previously announced 1st DownTM Virtual Football game will launch with U.S. gaming and lottery customers in the middle of 2018. In mobile, we have launched our RGS with multiple new customers, including BetVictor and most recently SNAI. Growth momentum in our business is strong across multiple dimensions.
