Business
Inspired Reports Third Quarter 2020 Results
NEW YORK, Nov. 12, 2020 /PRNewswire/ -- Third Quarter Revenue of $60.1 million including $9.3 million of income related to UK VAT Rebate Adjusted EBITDA1 of
About this update from Inspired Entertainment, Inc.
[{"type":"text","content":"NEW YORK, Nov. 12, 2020 /PRNewswire/ --\n\n \n \n \n \n \n \n\n \nThird Quarter Revenue of $60.1 million including $9.3 million of income related to UK VAT Rebate Adjusted EBITDA1 of $25.0 million including $9.1 million of income related to UK VAT Rebate Third Quarter Online Revenue2 increased 75% year-over-year on a pro forma basis3 Third Quarter Average Customer Gross Win Per Unit Per Day in the UK, Italy and Greece achieved approximately pre-COVID levels4 Liquidity position remains strong with cash of $43.9 million at quarter end. $32.5 million of additional cash in respect of VAT-related income has been received in fourth quarter 2020 with an incremental $4.1 million expectedInspired Entertainment, Inc. (\"Inspired\") (NASDAQ: INSE) today reported financial results for the three months ended September 30, 2020. \nTotal Revenue increased to $60.1 million, from $15.6 million in second quarter 2020 and $26.6 million in third quarter 2019 on a reported basis5. Third quarter 2020 revenue included a $9.3 million payment from a UK LBO customer related to our contractual revenue share of a customer's VAT rebate (\"VAT-related income\") and $24.3 million from the Novomatic Gaming Technology Group that Inspired acquired on October 1, 2019 (\"Acquired Businesses\"). Adjusted EBITDA increased to $25.0 million, from $2.1 million in second quarter 2020 and $8.8 million in third quarter 2019. Third quarter 2020 Adjusted EBITDA included $9.1 million of VAT-related income (in conjunction with third party fees) and $5.1 million for the Acquired Businesses. Excluding these, the legacy business Adjusted EBITDA was $10.9 million, an increase of 24.7% from $8.7 million in the prior year, exhibiting growth in the online business and strong retail recovery immediately following customer's retail venues reopening. Total Online Revenue increased to $7.8 million, up 74.7% from third quarter 2019 on a pro forma basis, demonstrating the growing presence and popularity of the Company's online offerings across gaming and Virtual Sports online channels. Adjusted EBITDA Margin1 was 41.6% (including the impact of VAT-related income; without the VAT income the margin would have been 31.3%), which compares to 13.5% in second quarter 2020 and 26.2% in third quarter 2019 on a pro forma basis. In addition to acquisition synergies, COVID-19 cost cutting has create...