Inspired Entertainment’s Q3 revenue has taken a hit. The gaming content and services provider posted a 25.3% drop in revenue for the third quarter of 2019.
The company has blamed the sharp decline in the revenue to the reduced stake limits on Fixed Odds Betting Terminals (FOBTs).
Despite a significant decline, Inspired’s Executive Chairman, Lorne Weil said that they are not surprised and had expected the decline. He also said that the final quarter’s figure is already looking better and that he was confident of improved performance.
According to the figures released, Inspired generated $26.6 million in revenues, services made up for most of that with $23.8 million.
The company grossed $2.8 million from Hardware services. However, its total cost of sales was up 6.1% to $7 million which made a cut in overall operating profits.
On the brighter side, depreciation and amortization were 27.7% less than what was reported in 2018. Interest expenses were down 18.5% to $4.4 million.
Earlier in the year, Inspired Entertainment Inc officially announced the acquisition of the Gaming Technology Group (“NTG”) of Novomatic UK, a division of the Austrian NOVOMATIC GROUP.
The entire deal was finalized for $120 million. With the acquisition deal, the company aims at increasing its UK market share. Once the deal is closed, Inspired would be managing approximately an estimated 75,000 gaming machines in the UK and Europe.