The lottery and gaming provider, Inspired, has published its financial results for Q2 of FY2021, reporting a net loss of $43.8m.
The shortfall comes despite revenues growing by 166.4% from $15.6m to $41.5m from the same period last year. Similarly, adjusted EBITDA increased to $8.0m, a 289.3% increase from the $2.1m in Q2 of FY2020.
The company attributed the growth in sales to the reopening of society following the COVID-19 pandemic, which allowed betting shops, holiday parks and pubs to reopen, all of which are significant sales drivers.
Inspired’s interactive business has seen further growth, with revenues reaching $5.8m, a 69% increase on the previous year driven by the addition of new customers and territories and the consistent launch of new high-quality content.
Lorne Weil, Executive Chairman, commented: “We are pleased with our second quarter results as the majority of our retail businesses steadily reopened throughout the quarter and our Interactive business built upon its momentum coming into the quarter to continue its rapid growth trajectory.
“Gross gaming revenue per operational machine in betting shops is approximately back to pre-COVID levels, the pubs have been improving steadily week-to-week since constraints were completely lifted in July 2021 and revenue from the holiday parks has outperformed our initial expectations.”
During Q2, Inspired enacted a significant finance programme, in which it ‘refinanced all of its debt, issuing $324.7m of 7.875% senior secured notes and establishing a $27.6m secured revolving facility’.
Stewart Baker, EVP and CFO, added: “During the second quarter, we refinanced all of our borrowings, which extended our maturity profile and provided us increased operating flexibility, while lowering our expected interest expense (excluding the amortization of debt fees) for 2022 by approximately $3.6m.
“Between the strong retail gaming recovery outlook, robust igaming trends, refinancing and the overall improvement in our cost structure coming out of COVID-19, we believe we are in a better position than ever to deliver on our strategic plan and maximize shareholder value.”