Inspired Reports Fourth Quarter and Year End 2024 Results

• Fourth Quarter Revenue of $83.0 million, driven primarily by record Interactive revenue, up 45% year-over-year
• Fourth Quarter Net Income of $68.0 million and Adjusted Net Income of $4.7 million
• Fourth Quarter Adjusted EBITDA of $30.9 million, up 22% from last year and driven by record Interactive Adjusted EBITDA, up 105% year-over-year

NEW YORK, March 17, 2025 (GLOBE NEWSWIRE) -- Inspired Entertainment, Inc. ("Inspired” or the "Company”) (NASDAQ: INSE), a leading B2B provider of gaming content, technology, hardware and services, today reported financial results for the three-month period and fiscal year ended December 31, 2024.

"We ended the year with a fourth quarter that reflects the strength and resilience of our diversified business model," said Lorne Weil, Executive Chairman of Inspired. "We are pleased to report another quarter of robust performance in our Interactive segment, with revenue growing 45% year-over-year and Adjusted EBITDA more than doubling. This growth continues to be driven by strength in the UK, North America, and continental Europe. Our fourth quarter Adjusted EBITDA margin in interactive expanded from 50% to 71% year over year, showcasing the scalability of our digital operations. We're particularly encouraged by the substantial progress we've made in our Hybrid Dealer rollout strategy, including the successful launch of our MGM Bonus City game with BetMGM in Michigan and achievement of a significant milestone with the commitment to our revolutionary Hybrid Dealer Roulette game in Canada by Loto-Québec. Additionally, we announced bet365 as the first customer to offer the Hybrid Dealer product in the UK. We expect to add our Roulette 4 Ball Extra Bet game to the portfolio early in the second half of 2025 and the pipeline for our Hybrid Dealer product continues to be robust.

"In our Gaming segment, we concluded 2024 with a strong fourth quarter, achieving 42% growth in segment Adjusted EBITDA. For the full year, segment Adjusted EBITDA margin improved 260 basis points compared to the prior year, driven by enhanced efficiency and profitability through our operational initiatives and a favorable revenue mix. Additionally, our partnership with William Hill is progressing well with the installation of 5,000 new Vantage cabinets, on track to be completed by the end of the first quarter. These next-gen terminals have consistently driven double-digit growth, and when combined with the results we are seeing from our operational initiatives, we have a solid foundation for further growth in 2025.

"While our Virtual Sports segment faced challenges over the past year, particularly with a key customer, we have initiated strategic measures to streamline business and product development. This includes unifying all of our product and platform teams across segments, including Virtual Sports, under one cohesive leadership group. We believe an integrated approach, combined with some innovative new products, will drive future growth. Despite the recent headwinds, we are encouraged by the high single-digit revenue growth from our broader customer base, driven by strong online performance. We remain confident in the long-term potential of this high-margin business, which continues to generate margins of over 70%. Our strategic focus on growth initiatives in Brazil, our new licensing agreement with the National Hockey League, and the extension of our partnership with Aristocrat Interactive to provide V-Lottery Virtual Sports games to the Virginia Lottery position us well for future success.

"Our Leisure segment once again delivered steady growth with a 7% increase in revenue driven by continued Vantage deployments in our pubs business as well as growth in our bingo, MSA and holiday park businesses. EBITDA margin improved due to cost improvements across the segment.

"As we look ahead, we are committed to executing our strategic priorities: expanding our digital businesses, optimizing our land-based operations, and investing in new market opportunities. The strong performance of our Interactive segment, improving profitability in Gaming, and our ongoing initiatives in Virtual Sports content and new markets give us confidence in our ability to drive sustainable growth and create value for our shareholders."

Recent Business Highlights

• Subsequent to quarter-end, began the strategic rollout of mobile and slot games catalogue in Brazil.
• Launched the Hybrid Dealer Roulette game in the U.K. with bet365 as the first UK customer for the innovative Hybrid Dealer product line.
• Extended partnership with Aristocrat Interactive to provide the Virginia Lottery with V-Lottery Virtual Sports games, making it the first U.S. lottery to offer this innovative online content.
• Subsequent to quarter-end, announced a long-term extension of its partnership with Moto Hospitality and Welcome Break, two of the UK's largest motorway service operators.