Casino game developer and specialist in online slots; Inspired Entertainment of Reel King Multiplier and Centurion Reelus Maximus, has today released its financial figures for the second quarter of 2020 and reports that there are positives to be taken from the contents.
Overall, the firm more than doubled its online revenue compared with the same period last year and despite the impact of the Coronavirus pandemic, Inspired experienced revenue of more than fifteeen million dollars for April through June 2020.
In addition, around ninety-percent of server based gaming machines were back in operation from the beginning of August 2020 and already showed positive results, whereby average customers gross win per unit per day increased compared with the same period in 2019.
Lorne Weil of Inspired Entertainment spoke out about the report and figures:
“We are pleased with the fundamentals of our business as we have navigated the impact of the COVID-19 Closures.
Given these closures, we expected a negative impact in the second quarter, however the implementation of aggressive cost-savings measures and the strong demand in our online business, which more than doubled on a pro forma basis versus last year’s second quarter, helped to compensate for the retail closures and we were able to achieve EBITDA profitability during the quarter.
At this point, many of our customers’ retail venues have re-opened and we are encouraged by the initial results.
Server Based Gaming retail recovered faster than we had expected with July Customer Gross Win per unit per day tracking ahead of year-over-year comparisons and at or above pre-COVID levels, however the number of machines in use is still below pre-COVID levels.
Pubs and leisure parks did not start to open until July, but we have experienced an improving trend in most of our retail businesses each week since re-openings commenced. We believe we are well-positioned to recover, assuming no further COVID measures are implemented in our markets, given (1) our focus on local, smaller retail venues, which, we believe, are less travel dependent and better situated than larger venues to adapt to social distancing measures, and (2) our European-concentrated business which appears to be better positioned than the United States in managing the COVID-19 health crisis.”
Inspired Entertainment, like many other gaming companies has been greatly affected by Covid-19 disruptions, including the temporary suspension of land-based corporations partnered with the gaming firm.
Stewart Baker, also of Inspired Entertainment shared his thoughts on the report and outlined the importance of mitigating the impact of the global pandemic:
“We are now well into a re-normalization of our operations and continue to be diligent with our cost-saving measures and capital allocation strategies.
We are taking a prudent approach to returning staff from furlough and have been successful at keeping our labor costs strictly controlled.
During the quarter we finalized an agreement with our lenders to amend our debt covenants without the requirement to raise additional capital.
We believe this strong cost containment and cash management demonstrates our team’s ability to effectively navigate our business over the long term and will directly contribute to future margin improvements as the economy begins to reopen.”
Furthermore, due to the change in gambling patterns and behaviour of gamblers and bettors over the last five months since the global pandemic started, Inspired experienced ‘strength and resilience’ in the second quarter, particularly in its online business of gaming and virtual sports.