Inspired Entertainment executive chairman Lorne Weil said the group’s 31 per cent revenue jump in Q3 to US$97.5m was chiefly led by growth in its Interactive segment.
The segment grew adjusted EBITDA by nine per cent to US$16.4m from $15m and in the year to date, the digital business has generated 58 per cent of adjusted EBITDA contribution, up from 50 per cent in 2022.
The Interactive segment’s revenue and adjusted EBITDA increased by 28 per cent and 55 per cent year-on-year on a constant currency basis, “underscoring both the growth and scalability of the business,” Weil said.
Overall revenue, including low margin gaming hardware sales, rose from $74.2m in Q3 2022.
Weil said the performance “reinforces the shift in our strategic focus towards our higher margin, scalable digital business and we continue to invest in premium content creation for these segments.”
Inspired’s revenue from its Virtual Sports segment declined year-on-year from $14.4m to $13.4m.
“The year-over-year decline was driven by a major customer’s optimising of their customer base, with a partial offset due to increased retail revenue,” Weil said.
However, he said the company had observed “extraordinary growth” in its Virtual Sports segment in the last two to three years and insisted the segment is “heading into another strong growth phase, driven by our exciting new content partnerships with the NFL and NBA.”
