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After making headlines recently with multiple partnerships, Inspired Entertainment Inc. has released its financial results for the second quarter and first half of 2024.
The company’s revenue increased slightly to $75.6 million in Q2, compared to $75 million in Q2 of the previous year.
In an Inspired Entertainment news release, Lorne Weil, executive chairman, attributed the company’s success to its interactive venture, which was up 40% year over year.
“We delivered solid second quarter 2024 results led by strength in our interactive business and a stable performance in gaming.”
Key Takeaways
- Inspired Entertainment delivered a good second-quarter report, resulting in $75.6 million in revenue.
- This growth is primarily fueled by the performance of its interactive division.
- Based on the strong Q2 performance and ongoing initiatives, Inspired Entertainment is confident in surpassing first-half revenue and EBITDA in the second half of 2024.
Interactive segment drives 69% increase in adjusted EBITDA
The company’s interactive segment, driven by the successful hybrid dealer initiative, outperformed the prior year, generating substantial growth in both revenue and EBITDA.
The company saw a 69% year-over-year increase in adjusted EBITDA, reaching $25.5 million. This translated to a net income of $2 million for the second quarter. Weil said:
“Our Interactive segment had a record-breaking performance, achieving quarterly all-time highs in both revenue and Adjusted EBITDA, up 40% and 69%, respectively, compared to the same period last year.
“These results were achieved with only a modest contribution from our Hybrid Dealer product, which was live with just one product — the MGM Bonus City game show wheel — with a single customer and in a single market during the quarter,” Weil continued.
Key developments impacting the first half of 2024
During the first half of the year, Inspired Entertainment was actively expanding its US online casino market reach and product offerings. The company significantly increased its iGaming footprint by partnering with Fanatics Casino to launch its content in Michigan and Pennsylvania. Demonstrating its commitment to the Connecticut market, Inspired achieved full coverage there through a collaboration with FanDuel.
The company introduced the Hybrid Dealer game, MGM Bonus City, in partnership with BetMGM in Michigan. Furthermore, Inspired strengthened its position in Pennsylvania by expanding its existing partnership with bet365.
“Looking ahead, the expansion of our Hybrid Dealer offering remains a top priority,” Weil said. “We’re pleased to announce that in July, we successfully launched the Hybrid Dealer game show wheel with BetMGM in Michigan, marking an important milestone in our growth strategy.
“We anticipate onboarding our second customer with a bespoke version of the game show wheel in the third quarter.”
In a more recent deal, Inspired announced a strategic alliance with Scientific Games. This collaboration positions the company to tap into the global lottery market through the SG Content Hub Partner Program.
Inspired eyes expansion in key markets
The iGaming operator anticipates strong performance in the second half of 2024, projecting revenue and EBITDA to exceed first-half figures. Inspired is confident in sustaining at least 30% growth in its interactive segment while also expanding its reach.
“Given our initiatives, we anticipate revenue and Adjusted EBITDA during the second half of the year from Virtual Sports will exceed the revenues and Adjusted EBITDA from the first half of 2024,” Weil said.
“The gaming and leisure segments continue to provide a core foundation to our earnings and cash flow. The segment is poised for a solid second half with several recent agreements that we’ve announced.”
Building on the success of its advanced terminals in betting shops, the company plans to introduce them to the pub sector. Additionally, Inspired will maintain a focus on key US markets and explore new opportunities in Brazil and South Africa.
