Interactive Segment Boosts Inspired Entertainment, Inc.’s Revenue to $83M in Q4

Inspired Entertainment, Inc. (NASDAQ: INSE) closed the fourth quarter of 2024 with a commendable performance, reporting total revenue of $83.0 million, which marks a 2% increase from the same period last year. This growth was primarily propelled by the Interactive segment, which saw a substantial year-over-year revenue increase of 45%. The company also achieved an adjusted EBITDA of $30.9 million for the quarter, representing a 22% increase compared to the previous year. This improvement in EBITDA was largely driven by the Interactive segment, which more than doubled its adjusted EBITDA year-over-year. The company’s net income for the fourth quarter was reported at $68.0 million, a significant turnaround from a net loss of $1.7 million in the same quarter of the previous year.

This positive shift can be attributed to a combination of increased revenue and strategic cost management. Notably, the adjusted net income for the quarter stood at $4.7 million, reflecting a 57% improvement over the previous year. The Gaming segment also demonstrated robust performance, with a 42% increase in adjusted EBITDA compared to the prior year. This growth was supported by operational efficiencies and a favorable revenue mix.

However, the Virtual Sports segment faced challenges, experiencing a 22% decline in revenue. Despite this, the company remains optimistic about the segment’s long-term potential, citing strategic initiatives aimed at revitalizing growth.

Inspired Entertainment, Inc. Reports Fourth Quarter Results

When comparing the company’s actual performance against market expectations, the market had anticipated an earnings per share (EPS) of $0.26, while the company delivered an EPS of $0.16 on a diluted basis.

Revenue expectations for the quarter were set at $81.36 million, and the company reported $83.0 million. This revenue growth was largely driven by the Interactive segment, which continues to benefit from its diverse geographical presence and product offerings. The segment’s success in the UK, North America, and continental Europe has been a key contributor to the company’s overall revenue growth.

Despite facing some headwinds in the Virtual Sports segment, the company’s ability to exceed expectations in other areas underscores its flexibility and strategic foresight. The Leisure segment also contributed positively, with a 7% increase in revenue driven by the continued deployment of Vantage products and growth in the bingo, MSA, and holiday park businesses.

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INSE Seeks to Expand Digital Business in 2025

Looking ahead, Inspired Entertainment has outlined several strategic priorities aimed at sustaining growth and enhancing shareholder value. The company plans to expand its digital businesses, optimize land-based operations, and invest in new market opportunities. The successful rollout of the Hybrid Dealer product line and the extension of partnerships with key players like Aristocrat Interactive and bet365 are expected to support these initiatives.

For the upcoming fiscal year, the company has expressed confidence in its ability to continue driving growth through its diversified business model. The Interactive segment is expected to remain a key growth driver, with plans to introduce new games and expand into additional markets. Meanwhile, the Gaming segment is poised to benefit from the completion of the Vantage cabinet installations in partnership with William Hill.

Inspired Entertainment is also focused on revitalizing its Virtual Sports segment through strategic measures aimed at streamlining operations and product development. The company remains optimistic about the segment’s long-term potential, particularly in high-margin areas like Brazil and through new licensing agreements.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.