Inspired Entertainment has stated it is “well-positioned to recover” from the effects of Coronavirus, with a “strong performance” across re-opened retail machines and a buoyant online market mitigating losses.
Releasing its Q220 financial report, the gaming technology firm stated SBG revenue dropped 77.1 percent year-on-year, with SBG Service revenue falling from £12.4m to £2.7m. The direction of the figures came as little surprise to the industry which has been hit dramatically by Covid closures, however, Inspired were literally inspired by an “improving trend” in retail which may yet deliver a positive result.
Delivered in its home territory in the States, there was considerable reference to the UK market which had joined the fold following the acquisition of high-performing Novomatic brands last year. And the trends following the emergence from lockdown were looking encouraging.
“Pubs and leisure parks did not start to open until July, but we have experienced an improving trend in most of our retail businesses each week since re-openings commenced,” said executive chair Lorne Weil. “We believe we are well-positioned to recover, assuming no further COVID measures are implemented in our markets.”
Highlighting positives, the company listed its “focus on local, smaller retail venues, which, we believe, are less travel dependent and better situated than larger venues to adapt to social distancing measures,” and its European-concentrated business; which is “better positioned” in managing Covid-19 than the US.
Though SBG Hardware revenue declined 63 percent to just over £300,000, the company reported VLTs in the UK, Italy and Greece are now operating at or above pre-COVID levels on a per-unit basis, after 80 percent of machines reopened before the end of June.
Not surprisingly given the impact Covid has had on land-based venues, it was online that proved the main driver for acquired business service revenue, contributing £900,000 to the £1.3m total, due to all pubs, leisure parks, MSAs and AGCs remaining closed for the entirety of the quarter.
However, the report added that “July performance from MSAs and AGCs has been encouraging with approximately 60 percent of machines in MSAs and approximately 75 percent of machines in AGCs open compared to pre-COVID levels.”