Inspired Entertainment Reports $297.1 Million Revenue for Fiscal Year 2024, Net Income Rises to $64.8 Million

Inspired Entertainment, Inc. reported total revenue of $297.1 million for the fiscal year ended December 31, 2024, a decrease of 8% from $322.9 million in the previous year. The decline was primarily attributed to a significant reduction in product sales, which fell to $38.5 million from $65.1 million in 2023, largely due to the absence of low-margin sales that had contributed $30.6 million in the prior year. However, service revenue increased slightly to $258.6 million from $257.8 million, reflecting a stable performance in this segment.

The company's profitability saw a notable improvement, with net income rising to $64.8 million compared to $6.9 million in 2023. This increase was largely driven by a substantial income tax benefit of $63.0 million, resulting from the reversal of a valuation allowance on deferred tax assets. Adjusted EBITDA for the year was reported at $100.1 million, indicating a slight increase from $99.2 million in the previous year, despite the overall revenue decline.

Operationally, Inspired Entertainment made significant strides in expanding its customer base and product offerings. The Interactive segment experienced a 38% revenue growth, reaching $39.3 million, driven by new partnerships and increased promotional activities. The number of live customers in this segment rose to 175, up from 149 in 2023. In contrast, the Virtual Sports segment faced challenges, with revenue decreasing by 21% to $45.4 million, primarily due to a major customer optimizing its operations and reducing promotional activities.

Geographically, the company generated 73% of its revenue from the UK, 7% from Greece, and 20% from the rest of the world. The UK market saw a decline in revenue due to the absence of low-margin sales, while revenue from the rest of the world increased, indicating a diversification in market reach. As of December 31, 2024, Inspired Entertainment employed approximately 1,600 individuals, with a focus on enhancing its operational efficiency through strategic partnerships and outsourcing manufacturing processes.

Looking ahead, Inspired Entertainment aims to leverage its proprietary technology and expand its presence in regulated markets, particularly in North America and Latin America. The company is also focused on improving its internal controls and financial reporting processes, following the identification of material weaknesses in its internal control over financial reporting. Management anticipates that ongoing remediation efforts will enhance operational efficiency and support future growth initiatives.