Company feels the impact of adverse currency fluctuations
Inspired Entertainment has released its maiden quarterly results following Hydra Industries Acquisition Corp's acquisition of Inspired Gaming Group and the consolidated company's rebrand to Inspired Entertainment Inc.
Its maiden results are beset with the impact of adverse currency fluctuations, however, the company remains confident of its sustainability saying its constant currency operating performance demonstrates the strength of the fundamentals in the business even before the launch of certain key new markets later in the year.
Key performance highlights for the quarter ended December 31, 2016 2017 include:
– Total revenue increased $2.4 million on a constant currency basis, offset by adverse currency impacts of $6.2 million, which resulted in a reported decrease in revenue from $30.8 million to $27.0 million (-12.3 percent).
– SBG revenue increased by $2.3 million on a constant currency basis, comprised of growth in hardware sales of $1.5 million and growth in service revenue of $0.9 million. This was offset by an adverse currency impact of $4.6 million, resulting in a reported decrease in SBG revenue from $22.3 million to $20.0 million.
– On a constant currency basis, Virtual Sports revenue increased by $0.1 million. Growth in revenue of $0.4 million was mainly offset by a decline in license revenue due to roll-off of revenue recognition of legacy contracts. On a reported basis, Virtual Sports revenue decreased by $1.5 million due to an adverse currency impact of $1.6 million.
"Strong performance in our Server Based Gaming estate and continued expansion in Virtual Sports recurring revenue drove growth in constant currency revenue and Adjusted EBITDA in the quarter," Luke Alvarez, chief executive officer and president of Inspired, said.
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