Inspired Entertainment has reported a three per cent decline in Q1 revenue to US$63.1m, but executive chairman Lorne Weil said its long-term digital strategy is moving in the right direction.
Indeed, Inspired’s digital business, which includes its Virtual Sports and Interactive segments, accounted for 76 per cent of the company’s adjusted EBITDA contribution compared to 69 per cent in the prior year.
Total adjusted EBITDA dropped by 19 per cent year-on-year to $16.3m from $20.1m, while the company reported a net loss of $5.7m, rising by 307 per cent from $1.4m in Q1 2023.
Weil said: “First quarter results were a combination of continued outperformance in our Interactive segment, offset by the persistence of second half 2023 trends in Virtual Sports where a major customer has optimised their customer base as well as confronting an unusually challenging quarter in the Gaming segment.
“Our digital business first quarter results were once again led by the Interactive segment, where revenue and adjusted EBITDA increased approximately 31 per cent and 38 per cent year-over-year on a constant currency basis, respectively.
“The performance of our Interactive segment continues to benefit from the growth of our existing customer base as well as our expansion to new customers as we have broadened our footprint.
“In Virtual Sports, we remain encouraged by the strong potential for future growth in the second half of 2024, capitalising on our expanded content offerings, such as our NBA and NFL-themed products.”
Weil said that while Q1 had “some items that worked against us,” the company is experiencing “improving trends” into Q2.
“As new markets emerge and more customers embrace these new, innovative products, opportunities for growth remain promising,” he said of the Virtual Sports business.
“We believe that our unmatched content portfolio positions us well to capitalise on the expanding online betting and gaming markets globally.”
