Inspired hit by FOBT reduction as revenue drops 28 for Q2
Inspired Entertainment generated total revenue of $26.7m for Q2, a 28% decrease year-on-year.
Adjusted EBITDA for the period was $8.9m, down 42%; the operator attributes these results to the reduction of maximum stakes for fixed-odds betting terminals (FOBT) in the UK.
Specifically, the drop in stakes from £100 ($120.70) to £2 caused revenue to fall $5.5m and adjusted EBITDA to decline $4m.
Net loss for the quarter was $10.7m, an increase of 167%.
Lorne Weil, Executive Chairman of Inspired Entertainment, said: "We believe we've taken much of the hit on the loss of revenue in the second quarter with very little mitigation so far.
"We've actually begun to see the revenue creep back up, with gross win per unit per day improving from 44.5% decline in April to a 38% decline in June."
Inspired believes it will have mitigated the impact of the FOBT reduction by the end of 2019 or beginning of 2020.
During Q2, Inspired also extended its contract with William Hill until 2022 and reached an agreement to acquire Novomatic UK’s Gaming Technology Group.