Inspired Entertainment’s Casino Revenue Plummets
Posted on March 16, 2020 at 4:03am
2019 was a year of highs and lows for Inspired Entertainment, and their full-year financial report reflects this. The online casino software company registered an increase in overall revenue for the year but this was offset by high operating costs. Despite the growth and gains made in various divisions, the company registered an overall loss for 2019.
The company’s hardware division and their server-based gaming products all saw impressive gains made throughout 2019. The former rose an impressive 83.2 percent from 2018, with the latter gaining a modest 3.3 percent from 2018. All of this raised Inspired Entertainment’s revenue by 9 percent in total, from 140.7 million Dollars to 153.4 million Dollars. Unfortunately, all of this was offset by the operating costs, which brought the adjusted earnings before interest, tax, depreciation and amortisation down by 10.4 percent.
The Fourth Quarter Highlights
The final quarter for 2019 was something of a microcosm for the whole year. In this quarter, Inspired Entertainment made a jump of 116.2 percent in casino revenue when compared to the same period in 2018. They sold 150 electronic table games to an operator in the UK, gained six new customers in North America, and installed 1183 terminals in Greece. In addition to this, the company entered into a new partnership with gaming giants Flutter Entertainment for virtual sports content.
Unfortunately, these incredible gains were completely wiped out from a financial perspective thanks to interest expenses on their refinancing for acquisitions. This increase was 10.8 million Dollars. Part of this was attributed to the company’s acquisition of a subsidiary of casino software brand Novomatic, which cost Inspired Entertainment 120 million Dollars. In addition to this, the increase output of hardware to customers related in far higher costs connected to service, actual hardware and administration.
Strong Growth Shown In Company
Inspired Entertainment may have shown a net loss for 2019, but the casino company isn’t feeling down about this. Lorne Weil, executive chairman for the gaming technology supplier, spoke about the growth and the momentum gained in 2019. He is very hopeful for the future of the company and that 2020 will show even more growth. A lot was put in place in 2019 for Inspired Entertainment to continue forward.
Weil did say that there are concerns about 2020, but these are out of the company’s hands. The full impact of the global pandemic of the coronavirus on the worldwide economy and the gambling industry is yet to be seen. However, the company is determined to stay positive.