Inspired Reports Positive Second Quarter 2020 Results

"We are pleased with the fundamentals of our business as we have navigated the impact of the COVID-19 Closures. Given these closures, we expected a negative impact in the second quarter, however the implementation of aggressive cost-savings measures and the strong demand in our online business, which more than doubled on a pro forma basis versus last year's second quarter, helped to compensate for the retail closures and we were able to achieve EBITDA profitability during the quarter," said Lorne Weil, Executive Chairman of Inspired.

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NEW YORK, Aug. 13, 2020 /PRNewswire/ --

• Second Quarter Online Revenue¹ More than Doubled Year Over Year on a Pro Forma Basis² and Strength Continues with July Online Revenues Increasing 82% Year Over Year
• Second Quarter Revenue of $15.6 Million and Adjusted EBITDA³ of $2.1 Million Despite Customer Closures Related to COVID-19, Due to Extensive Cost Containment and Strong Demand for Online Offerings
• Approximately 90% of Server Based Gaming Machines Were Available for Play as of August 1^st with Encouraging Results; July Average Customer Gross Win Per Unit Per Day Increased Year Over Year and Was Tracking At or Above Pre-COVID Levels⁴ 
• Liquidity Position Remains Strong with Cash of $40 Million at Quarter End Following Agreement with Lenders to Amend Covenants without Requirement to Raise Additional Capital

Inspired Entertainment, Inc. ("Inspired") (NASDAQ: INSE) today reported financial results for the second quarter ended June 30, 2020.

Total Revenue and Adjusted EBITDA³ were $15.6 million and $2.1 million in the second quarter of 2020, despite the temporary suspension of the Company's worldwide land-based business resulting from the ongoing COVID-19 global pandemic ("COVID-19 Closures"), mainly due to the aggressive cost containment efforts implemented by management.  The Company's total online business across its gaming and Virtual Sports online channels showed strength and resilience in the quarter with revenues increasing by $4.9 million from the second quarter of 2019 on a pro forma basis, demonstrating the growing presence and popularity of the Company's online offerings.  

"We are pleased with the fundamentals of our business as we have navigated the impact of the COVID-19 Closures. Given these closures, we expected a negative impact in the second quarter, however the implementation of aggressive cost-savings measures and the strong demand in our online business, which more than doubled on a pro forma basis versus last year's second quarter, helped to compensate for the retail closures and we were able to achieve EBITDA profitability during the quarter," said Lorne Weil, Executive Chairman of Inspired.