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New York-listed gaming supplier Inspired Entertainment has reported a 28 per cent decline in revenue to $26.7m for the second quarter of 2019.
The company announced that revenue was negatively impacted by $5.5m following the reduction in maximum stakes on fixed-odds betting terminals (FOBTs) in the UK, with the new measures impacting adjusted EBITDA by $4.0m.
Service returns from server-based gaming was down 33.1 per cent to $16.4m consequently of the FOBTs stake cut, which also lead to a 41.1 per cent per annum decline in client gross win per unit per day across the UK licensed betting offices.
Despite results, the company’s representatives continue to be confident that the business would be able to ease the impact of the stake cut.
“We believe we’ve taken much of the hit on the loss of revenue in the second quarter with very little mitigation so far. We’ve actually begun to see the revenue creep back up, with gross win per unit per day improving from 44.5 per cent decline in April to a 38 per cent decline in June,” stated Lorne Weil, Executive Chairman of Inspired Entertainment.
The company believes it will have mitigated the impact of the FOBT reduction by the end of 2019 or the beginning of 2020.
During Q2 Inspired also agreed to sell around 1,000 of its used gaming terminals, freed up by UK shop closures, to Playtech BGT Sports, which plans to repurpose the machines as self-service betting terminals.
It has also extended its supply contract with William Hill to 2022 and reached an agreement to acquire Novomatic UK’s Gaming Technology Group.
