Business
Inspired Reports Second Quarter 2019 Results
NEW YORK, Aug. 12, 2019 /PRNewswire/ -- Acquisition of Novomatic UK's Gaming Technology Group ("NTG") Remains on Track to Close During the Third Quarter of
About this update from Inspired Entertainment, Inc.
[{"type":"text","content":"NEW YORK, Aug. 12, 2019 /PRNewswire/ --\nAcquisition of Novomatic UK's Gaming Technology Group (\"NTG\") Remains on Track to Close During the Third Quarter of 2019, Subject to Regulatory Approval, with Committed Financing Expected to Decrease Cost of Debt Capital Contract Extension with William Hill, Through 2022 $6.8 Million Net Cash Provided by Operating Activities Less Cash from Investing Activities Results from April Implementation of £2 Stake Limit in the UK In Line with ExpectationsInspired Entertainment, Inc. (\"Inspired\") (NASDAQ: INSE) today reported financial results for the three-month period ended June 30, 2019. \nTotal Revenue for the three months ended June 30, 2019 was $26.7 million, a year-over-year decrease of $10.2 million, or 27.6%, on a reported basis, and $8.7 million, or 23.6%, on a functional currency (£) at constant rate basis. Adjusted EBITDA for the three months ended June 30, 2019 was $8.9 million, a year-over-year decrease of 42.8% on a reported basis and 39.7% on a functional currency at constant rate basis. \nAs expected, the Company's Revenue and Adjusted EBITDA1 were negatively impacted by the implementation of the new reduction in maximum B2 stakes to £2 in the UK LBO market implemented on April 1, 2019 (the \"Triennial Implementation\"), which caused a decrease of $5.5 million in Revenue and $4.0 million in Adjusted EBITDA. Excluding the Triennial Implementation, Revenue and Adjusted EBITDA would have been more in line with the previous quarter's Revenue and Adjusted EBITDA.\n\"The impact of the Triennial Implementation (which began on April 1, 2019) was in line with our expectations,\" said Lorne Weil, Executive Chairman of Inspired. \"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% decline in April to a 38.0% decline in June. This trend has continued thus far in the third quarter and we anticipate the trend will be more pronounced with the acceleration of shop closures and the restructuring mitigation. We remain confident in our plan to manage the effect of this regulatory change and we believe the ultimate projected impact on our Adjusted EBITDA should be at the lower end of the range of our guidance of approximate...