Inspired Entertainment reported that, despite their increase in revenue, they still saw widening losses in 2019. This according to their financial report that was issued on March 11.
They reported that the fourth-quarter revenue increased by 116.2% over the same period of time in 2018. This was driven by $66.4 million growth across “Business Segments and Acquisition of Novomatic Gaming Technology Group (“Acquired Businesses” or “NTG Acquisition”).”
In fact, the fourth-quarter numbers were quite positive for Inspired. They reported an adjusted EBITDA increase of 69.4% over the same period in 2018, an increase of $17.7 million. This, the company concluded, provides a total Annualized Cost Synergies for the Acquired Businesses Projected a $15.0 million for 2020.
The total revenue for 2019 saw an increase, up 9% from 2018, going from $140.7 million to $153.4 million in 2019. The majority of this revenue came from its business unit, which accounted for $134.9 million, an increase of 3.3% over the prior year.
The negative was that the increased revenue growth also meant rising costs. Selling, general, and administrative expenses increased 23.1% over 2018, reaching a value of $72.6 million last year. Service-related costs also climbed to $23.5 million, while hardware costs were up 59.5% to a value of $12.6 million.
Their Novomatic deal also cost money, resulting in a $6.7 million expense for running the operation. The group was acquired in October 2019 for $120 million. Combined, the increased costs led to an overall operating loss of $130 million.
Despite the overall loss for 2019, the company had a lot to feel positive about because of their fourth-quarter results. Inspired’s executive chairman Lorne Weil expressed his enthusiasm about the potential success for the company in the coming year.
“We are excited about the growth prospects we are seeing across the company,” Weil said. “We sold our first units in Illinois during the fourth quarter and have seen outstanding performance with all completed trials having resulted in follow-on orders.
“Our virtual sports business had its strongest ever quarter and we saw growth across the board. The popularity of our gaming and virtuals content continues to fuel the growth in our Interactive business and we are seeing impressive results from the recent launch of six new Interactive customers in North America.”
