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Sep 30, 2020
Inspired Q3 2020 Earnings Report
Inspired reported third quarter 2020 financial results.
Key Takeaways
Inspired Entertainment reported strong Q3 2020 results, demonstrating the resilience of its recurring revenue stream and the recovery of its retail business. The company benefited from its growing online presence and improved its overall cost structure.
SBG Revenue increased 39.0% to $25.5 million, including $9.3 million in VAT-related income.
Virtual Sports Revenue, including Interactive, increased 31.6% to $10.9 million.
Online business grew 75% year-over-year.
Received a VAT-related income payment of $9.3 million during the third quarter.
Revenue by Segment
Forward Guidance
Inspired anticipates a negative impact in the fourth quarter due to the recent resurgence of COVID-19-driven measures in parts of Europe.
Positive Outlook
- The fundamentally local nature of the business comprised of small venues.
- Ability for machines in the field to be turned on immediately when venues reopen.
- The vast majority of the business is driven by contracted, recurring revenue.
- Backlog remains intact post-lockdown.
- Focused and disciplined on emerging from this pandemic even stronger.
Challenges Ahead
- Several European countries have re-imposed restrictions on operations.
- Restrictions include complete or partial closures of land-based retail customer’s venues.
- Revenue from land-based retail customers has been impacted thus far in the fourth quarter.
- Closures of physical locations in England, Italy and Greece.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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