Inspired posts losses despite revenue growth in 2019

Loss attributed to rising costs plus M&A activity during the year.

UK.- Inspired Entertainment has published its 2019 financial report and despite enjoying an increase in revenue during the 12 month period, losses widened.

Total revenue for the 12 months to 31 December 2019 amounted to $153.4million (€135.2million), up 9.0% on the previous year.

The majority of revenue came from its business unit, which accounted for $134.9million of the total, an increase of 3.3% YoY.

But its revenue growth was accompanied by rising costs. Selling, general and administrative expenses increased 23.1% to $72.6million, while service-related costs climbed to $23.5million, with hardware costs up 59.5% to $12.6million.

Another big cost of 2019 was the acquisition of  Novomatic Gaming Technology UK at a cost of almost $130million.

Despite the overall loss for 2019, the company remains upbeat in particular due to the growth see in the last quarter of the year. 4Q19 revenue rose 116.2% year-on-year to $66.4million.

“We are excited about the growth prospects we are seeing across the company. We sold our first units in Illinois during the fourth quarter and have seen outstanding performance with all completed trials having resulted in follow-on orders.” Inspired’s Executive Chairman, Lorne Weil, said.

“Our virtual sports business had its strongest ever quarter and we saw growth across the board. The popularity of our gaming and virtuals content continues to fuel the growth in our Interactive business and we are seeing impressive results from the recent launch of six new Interactive customers in North America,” he added.