Inspired Entertainment reported a 25.3% revenue decline for the third quarter. Inspired said the significant decline is due to the fixed-odds betting terminal stakes.
Inspired’s Executive Chairman, Lorne Weil said the results for Q3 were within their expectations especially with the negative impact the FOBT reduction stakes were enforced. Weil added Q4 is already looking better with a considerable improvement already coming into effect across the UK. The company is hoping the final figures from Q4 will make up some of the loss from Q3.
Inspired said of its $26.6 million in generated revenues, services made up for most of that with $23.8 million. Hardware revenues accounted for the remaining $2.8 million. Total cost of sales was up 6.1% to $7 million. Inspired said their services declined to $4.7 million, a 14.5% dip while costs from hardware doubled to $2.3 million.
Inspired fell short even more so after selling, general and administrative expenses were tallied. These expenses cost the company $11.5 million. Depreciation and amortization were 27.7% less than what was reported in 2018. Interest expenses was down 18.5%, $4.4 million while the business didn’t receive no interest income this year, so there is no comparison for this sector of the finances.