Inspired Entertainment has voiced confidence in achieving its North American igaming growth ambitions, after the group reflected on fourth quarter results “driven by sustainable and diversified growth and our focus on operational efficiency”.
This comes as the group reports a seven per cent decline in revenue through the past year’s fourth quarter to $67m (2020: $71.7m), which the group says is due to “a $32.5 m payment from a UK LBO customer related to our contractual revenue share of the customer’s value added tax rebate”.
Without this, Q4 revenue is reported as securing a 71 per cent uptick from $39.2m, driven by continued momentum and strong demand throughout all business lines.
These divisions of interactive, virtual sports, leisure and land-based gaming secured increases of 36 per cent, 26 per cent, 183 per cent, and 49 per cent, to $5.7m (2020: $4.2m), $11m (2020: $8.7m), $23.5m (2020: $8.3m), and $26.8m (2020: $18m), respectively.
However, net loss through the quarter dropped to $1.2m from a profit of $3.1m secured one year earlier, with adjusted EBITDA down 32.6 per cent to $22m from $34.9m.
For the full-year, revenue increased 4.6 per cent to $208.9m (2020: $199.8m), but net loss slipped further still after closing at $36.7m from 2020’s $32.4m with adjusted EBITDA 11.2 per down to $64m (2020: $72.1m).
“We are pleased with our fourth quarter results, as we were able to achieve double-digit, year-over-year top and bottom-line growth across our business units, on an organic basis when excluding the impact of VAT-related revenue and income from 2020,” said Lorne Weil, Executive Chair of Inspired.
“Our results this past year are evidence of our ability to drive sustainable, long-term growth and profitability. The consistent momentum we saw building throughout 2021 and the strong demand that continues to exist for our products across each of our business lines, including the industry outlooks for land-based gaming coming out of COVID-19 and sustainable online growth trends, further support our confidence in the long-term outlook for the company.”
Looking ahead, Inspired asserts that it is focussed on a forward pipeline of growth opportunities across the Americas and Europe, having been buoyed by recent the recent receipt of an igaming licence in Ontario and launch of online casino in Connecticut.
Weil continued: “We have a clear pathway for growth, and we continue to make progress in our North American strategic initiatives to lay the groundwork for future growth opportunities.
Adding: We believe we are still in the early innings in North America and we are excited about our prospects for the year ahead and beyond. We remain confident in our positioning within each of our addressable markets and the significant growth opportunities ahead of us.”