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Mar 31, 2022
Inspired Q1 2022 Earnings Report
Inspired had a strong start to the year, driven by recovery in Gaming and Leisure segments and growth in the online business.
Key Takeaways
Inspired Entertainment reported a strong start to the year with year-over-year revenue growth across all business units. Gaming and Leisure segments showed full recovery, and Virtual Sports experienced a record quarter. The company is focusing on North American strategic growth initiatives and expects continued growth with new customers and markets.
Total Revenue increased 166% year-over-year to $60.6 million.
Gaming recurring revenues returned to pre-COVID-19 levels.
Virtual Sports experienced a record quarter with a 54% year-over-year increase in Online Virtuals.
Board of directors approved a share repurchase program of up to $25 million.
Inspired
Inspired
Inspired Revenue by Segment
Revenue by Segment
Virtual Sports Revenue
CapyFin.comInteractive Revenue
CapyFin.comLeisure Revenue
CapyFin.com Forward Guidance
The company is confident in its long-term growth prospects, driven by higher margin Virtual Sports and Interactive segments. They believe their business remains in good standing for the future with an enlarged digital business, growing position in North America, and ongoing focus on delivering superior content.
Positive Outlook
- Continued growth in the Virtual Sports and Interactive segments.
- Growing position in the North American market.
- Focus on delivering superior content.
- Enlarged digital business.
- Share repurchase program of up to $25 million.
Challenges Ahead
- Redeployment of resources to new market launches impacted Interactive Revenue growth in Q1 2022.
- Total Company Net Cash Provided by Operating Activities Less Capital Expenditures during the quarter was an outflow of $5.8 million, due to increased inventory levels and higher spend on property and equipment and capital software.
- Increase in Total Company Selling, General and Administrative expenses increased to $29.6 million from $15.2 million
- Currency movements had a negative impact of $1.7 million on total revenue.
- Gaming Product Revenue decreased by $2.2 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income