Supplier Inspired Entertainment announced its Q1 2025 revenue of $60.4 million, a 3% decrease year-over-year, with an adjusted net loss of $2.8 million.
While quarterly revenue saw a decline, the adjusted EBITDA for the Interactive Business Division saw a significant increase of 75% year-over-year. Overall adjusted EBITDA grew 19% compared to the same period last year, reaching AU$18.4 million.
Complete Q1 Performance
All company divisions experienced a decline in revenue, leading to a slight 3% decrease in Inspired's overall revenue. By division, the highest revenue was from the Gaming Business, with Q1 revenue of $21.7 million, down 6% year-over-year. This was followed by the Leisure Business, which earned $17.9 million, down 4% compared to Q1 2024.
The only division with revenue growth was Inspired's Interactive Division, which saw a 49% increase year-over-year to $12.1 million. However, this growth was not enough to offset the 30% decline in revenue from the Inspired Virtual Sports Division, which earned $8.7 million.
Overall, the company reduced its net loss by $6.3 million compared to the previous quarter, with a net loss of $0.1 million in Q1 2025. Additionally, operating profit (loss) also decreased from a profit of $1.6 million in Q1 2024 to a loss of $2.1 million this quarter. However, in contrast, adjusted EBITDA grew 18% year-over-year.
Q1 Highlights
It was a busy first quarter for Inspired, with a focus on the UK market. In January, the company launched a mixed dealer roulette product in the UK in collaboration with bet365. Shortly thereafter, Inspired announced a new slot game in partnership with Caesars Entertainment.
Back in the UK market, in February, Inspired extended its existing agreement with Moto Hospitality for another five years. Recently, in March, the supplier sought to further expand its presence in the UK through a new partnership agreement with Ivy Casino.
It is worth noting that Inspired Entertainment also announced its FY 2024 performance in the first quarter, with revenues reaching $297.1 million, a 2% increase year-over-year.
CEO Comments
Lorne Weil, Executive Chairman of Inspired Entertainment, commented on the latest results: "We are pleased to announce a strong start to 2025, reflecting the continued growth momentum of our diversified business divisions. Our Interactive business continues to perform exceptionally, driven by strong growth in the UK and North America, with a 49% year-over-year revenue increase.
The Interactive business's adjusted EBITDA grew 75%, and the adjusted EBITDA profit margin increased by about 1,000 basis points to 64%, demonstrating the scalability and efficiency of our digital operations."
We are excited about the progress of our hybrid dealer strategy, including the successful launch of new games and the establishment of partnerships, all of which lay a solid foundation for our continued growth in the future. In the gaming business, we achieved robust performance, with adjusted EBITDA growth year-over-year, thanks to new terminals deployed in Greece and the UK, as well as improved efficiency and profitability through operational plans implemented in the second half of 2024. The installation of the new Vantage cabinets in collaboration with William Hill has been completed, driving high single-digit year-over-year growth and setting a solid foundation for performance for the remainder of the year.
