Inspired Entertainment, Inc., or Inspired, reported unaudited financial results for the three-month period which ended on March 31, 2022. Q1 2022 net income increased to $1.5m from a net loss of $16.7m in the prior year.
Revenue also increased to $60.6m from the $22.8m from the first quarter of the prior year. Virtual Sports revenue increased 84% year-over-year for a record quarter. The Board of Directors has also approved a $25m share repurchase program.
Lorne Weil, Executive Chairman of Inspired, stated: "We have had a strong start to the year, generating year-over-year revenue growth across our business units, while also laying the groundwork for the long-term growth and profitability of our business."
Interactive launched in Connecticut (Q1) and both Interactive and Virtual Sports will launch in Ontario during the second quarter. Gaming revenue increased 123% year-over-year to $24.1m and leisure revenue increased to $19.6m, an increase from $0.5 million in the prior year.
Weil continued: "Our Gaming and Leisure results were particularly strong, demonstrating the full recovery of our land-based customers, as Gaming recurring revenues returned to pre-COVID-19 levels and Leisure benefited from an extended holiday season. Our Virtual Sports experienced a record quarter with an impressive 54% year-over-year increase in Online Virtuals on difficult comparatives."
Interactive content was launched with eight new operators during the first quarter of 2022. These operators include Superbet in Romania, DraftKings in Connecticut, Goldbet in Italy, and Rush Street in Michigan.
Eight new games were also launched during Q1 as well, including Reel LinKing™ and Gold Cash Big Spins.
In regards to the share repurchasing program, Stewart Baker said: "Based on the long-term outlook of the Company, along with the strength of our balance sheet, today our board of directors has approved a share repurchase program that will allow us to opportunistically buy back up to $25 million of our common stock at the same time as we continue to invest in the growth of our business."
Baker is the Executive Vice President and Chief Financial Officer of Inspired Entertainment, Inc.
