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Jun 30, 2022

Inspired Q2 2022 Earnings Report

Inspired's Q2 2022 earnings were marked by strong performance across segments, driven by the reopening of retail venues and growth in the online business.

Key Takeaways

Inspired Entertainment reported a strong second quarter in 2022, with a 72% increase in total revenue to $71.3 million. The company saw significant growth in its Gaming and Leisure segments due to the reopening of retail venues post-COVID-19 lockdowns, as well as continued expansion in its online business. Virtual Sports also achieved record revenue, and the company is optimistic about future growth with new interactive launches and partnerships.

Total revenue increased by 72% year-over-year to $71.3 million, driven by growth in Gaming and Leisure segments and the online business.

Virtual Sports revenue reached a record $14.0 million, with online Virtual Sports revenue doubling year-over-year.

Interactive revenue was flat year-over-year but grew 12% in functional currency, with expansion in North America and Greece.

Leisure revenue increased significantly due to the reopening of retail venues and increased travel within the UK.

Total Revenue
$71.3M
Previous year: $41.5M
+71.8%
EPS
$0.26
Previous year: -$1.94
-113.4%
Gross Profit
$55.2M
Previous year: $30.8M
+79.2%
Free Cash Flow
$7.3M
Previous year: -$14.2M
-151.4%
Total Assets
$300M
Previous year: $286M
+4.9%

Inspired

Inspired

Inspired Revenue by Segment

Forward Guidance

Inspired Entertainment anticipates continued pressure from FX rates but remains confident in its underlying business and strategic plan to deliver profitable growth, increase cash flows, and maximize shareholder value.

Positive Outlook

  • Ongoing strong performance despite macro-economic headwinds and foreign exchange rates.
  • Long-term outlook of the Company and the strength of the balance sheet.
  • Board-approved share buyback program.
  • Focus on executing strategic plan to deliver profitable growth.
  • Aim to increase cash flows and maximize shareholder value.

Challenges Ahead

  • Continued pressure from FX rates.

Revenue & Expenses

Visualization of income flow from segment revenue to net income