Inspired Entertainment files Q4 results to avoid Nasdaq delisting
Supplier sees overall full-year revenue reach record levels as rapid publication of Q4 results follows Q3 disclosure in February as part of successful compliance plan
Inspired Entertainment has reported a 6% year-on-year (YOY) jump in Q4 revenue from $76.6m to $81.2m and has seemingly staved off a potential Nasdaq delisting, despite the late publication.
The supplier had been given until June 3 to file the requisite Form 10-K in relation to its full-year results, with the stock exchange noting a failure to regain compliance would see shares delisted.
However, with the publication of the group’s Q4 performance, as well as Q3 results being published in February after Nasdaq accepted the group’s plan of compliance, Inspired will now be looking to a more straightforward reporting future.
Last month, Inspired said it had “devoted considerable resources to undertaking a broad-based review of its accounting policies,” which meant the preparation of its 2023 Form 10-K had been delayed.
Inspired said the late filing was due to an error related to the capitalization of software development costs and, as a result, led the group to launch review.
Breaking the supplier’s revenue down by vertical, gaming fell by 3% to $35.8m, while the firm’s virtual sports arm saw the biggest decline YOY from $14.7m to $12.9m.
The interactive segment of the business saw the largest gains, with a YOY increase of 49% from $5.4m to $8m. The firm’s leisure arm also saw revenue jump 8% YOY from $19.4m to $21m.
Total company adjusted EBITDA rose 3% YOY from $25.7m to $26.5m while net operating income for the dropped by 20% YOY from $11.6m to $9.3m.
Alongside its Q4 results, Inspired Entertainment also released its results for full-year 2023.
Group revenue jumped 15% YOY from $281.6m to $323m while adjusted EBITDA rose by 2% YOY from $99m to $100.5m.
Following the publication of the results, Inspired Entertainment’s share price spiked 7.4%, at the time of writing, to $10.28, peaking at $10.66, its highest value since October last year.
Lorne Weil, Inspired Entertainment executive chair, said: “We closed out 2023 with solid results, in line with our expectations.
“Our fourth quarter performance capped off a strong year, fueled by our successful strategic focus on scaling our higher-margin digital verticals alongside steady growth in our land-based operations.”