- Revenue increased 72% to $71.3 million from $41.5 million in prior year
- Virtual Sports Revenue increased 71% year-over-year to a record quarterly level - $14.0 million
- Net Income increased to $7.5 million, or $0.26 per diluted share, from a Net Loss of $43.8 million in prior year
- Adjusted EBITDA1 increased 227% to $26.1 million from $8.0 million in prior year
- Secured long-term strategic partnership with William Hill for UK gaming estate
- Since announcing its share repurchase program, Inspired has repurchased 734,349 shares of common stock for $7.1 million (average price of $9.73 per share) as of August 9, 2022


NEW YORK, Aug. 9, 2022 /PRNewswire/ -- Inspired Entertainment, Inc. ("Inspired" or the "Company") (NASDAQ: INSE), a leading B2B provider of gaming content, technology, hardware and services, today reported unaudited financial results for the three-month period ended June 30, 2022.

Total Revenue increased 72% year-over-year for the three months ended June 30, 2022 on a reported basis2 and 91% in functional currency. The results reflect a continuation of the trends seen in the last quarter, including growth in the Company's aggregate online business, which includes the Virtual Sports and Interactive segments, and ongoing strength in the Gaming and Leisure segments.

Virtual Sports Revenue increased 71% year-over-year to a record $14.0 million on a reported basis (90% in functional currency), with Online Virtual Sports Revenue increasing 99% year-over-year in functional currency. Subsequent to the end of the quarter, DC Lottery became the second North American lottery to launch Inspired's Virtual Sports, both in retail and online.


Interactive Revenue was flat year-over-year on a reported basis (increased 12% in functional currency), with growth in business volumes primarily driven by North America and Greece. Results in the UK were impacted by many of our UK operator customers enhancing protections for players in advance of the proposed UK Gambling Act review. During the quarter, we went live with seven operators in Ontario and Rush Street in Pennsylvania with several additional customer launches in these new jurisdictions expected throughout the remainder of 2022. Early indications from these new markets (Adjusted EBITDA grew 15% in June versus prior year in functional currency) suggest future growth opportunities driven by geographic expansion of iGaming into new North American markets as well as enhancements to our technology, content and product offerings.

Gaming Revenue increased 57% on a reported basis (75% in functional currency) and Leisure Revenue increased 130% year-over-year on a reported basis (157% in functional currency), as recurring revenues returned to pre-COVID-19 performance levels and Leisure benefited from a strong local holiday business. Strength in the Gaming and Leisure businesses continues as major UK contracts/extensions were signed with William Hill, Greene King and Mitchells & Butlers.

Net Income improved to $7.5 million, or $0.28 per basic share and $0.26 per diluted share, from a net loss of $43.8 million, or $(1.94) per basic and diluted share, in the prior-year period.

Adjusted EBITDA increased 227% year-over-year on a reported basis (262% in functional currency). Adjusted EBITDA Margin1 improved to 37% in second quarter 2022 compared to 19% in second quarter 2021.


"Adjusted EBITDA" and "Adjusted EBITDA Margin" are non-GAAP financial measures defined below under "Non-GAAP Financial Measures" and reconciled to the most directly comparable GAAP measures in the accompanying supplemental table. Adjusted EBITDA Margin is calculated as a percent of Revenue.


Reported income statement results assume GBP:USD exchange rate was GBP 1.26: USD 1.00 for the three months ended June 30, 2022 and GBP 1.40: USD 1.00 for the three months ended June 30, 2021.

"This quarter's underlying performance is a testament to the resiliency of our diversified business model as well as what we perceive to be the continued strength in consumer spending across our segments – notwithstanding ongoing macro trends," said Lorne Weil, Executive Chairman of Inspired. "Virtual Sports was, once again, the standout in the quarter, producing its fourth record-setting Revenue and Adjusted EBITDA quarter in a row, with online Virtual Sports doubling year-over-year versus strong comparatives, speaking to our strong product development and increased market penetration. Interactive revenue increased year-over-year on a functional currency basis as we increased our footprint through numerous integrations. In our land-based business, we're delighted to see that customer gross win per unit in betting shops and holiday parks was ahead of pre-COVID levels as consumers continue to frequent betting shops and pubs and are staying local for holidays."

Weil continued, "We are very excited about the current trends in our business and what's to come, including our recent Interactive launches in Ontario and particularly in Pennsylvania, where we are witnessing strong results with only one customer live and we have several additional customer launches to follow in the year, and the launch of Virtual Sports with the DC Lottery, our second North American lottery. We have also successfully negotiated a long-term strategic partnership/extension with William Hill on the Gaming front and signed key contract extensions with customers in the UK pub industry, including Greene King and Mitchells & Butlers. In addition, we have an exciting pipeline of new products and further enhancements to our existing Virtuals products. We are making Virtuals history with the first ever women-led virtual soccer product and we have signed baseball legend Mickey Mantle, in addition to our previously announced signing of Babe Ruth, for our Home Run ShootOut™ game, which is expected to launch in early 2023."

"The long-term fundamentals and health of the business are the strongest they have been in my tenure. The growth dynamics of our markets remain compelling as a wider audience engages with online betting and gaming and new jurisdictions open up, creating further opportunities. With the return of our retail customer base, we remain confident that our diversification and proven ability to grow our business will enable us to deliver further progress against our strategy," Weil concluded.


See complete release and spreadsheet at