Inspired Entertainment has begun rolling out its Virtual Sports content through a SaaS agreement with Playtech as the company’s Interactive business continues gaining market share and shifting its revenue mix toward higher-margin digital operations.
Interactive revenue increased 15% year-over-year to $15.7 million during Q2, while segment Adjusted EBITDA increased 13% to $10.3 million.
The first customer launched through Inspired’s Playtech agreement is Malta Lottery, which is delivering several Virtual Sports channels through Inspired’s Streamed to Venue solution. The offering is already live across more than 160 venues in Malta and Gozo.
The SaaS agreement allows Inspired’s Virtuals content and cloud-native platform to be distributed through Playtech’s established global operator network. Management said Malta Lottery represents the first of multiple expected customer launches through the partnership.
Inspired is also expanding into additional regulated markets. The company went live on the first day of Alberta’s newly regulated gaming market with both Interactive and Virtual Sports content. Customers include FanDuel, DraftKings, BetMGM, Rush Street Interactive, Caesars Entertainment and bet365.
The digital expansion is part of a broader transformation designed to create a higher-margin and more cash-generative company. Inspired’s Q2 Adjusted EBITDA margin reached a company record 45%, up from 35% a year earlier, despite reported revenue declining following the divestiture of its UK holiday parks business and restructuring of its pubs operations.
Total Q2 revenue was $60.8 million, down from $80.3 million a year earlier, but increased 6% sequentially. Adjusted EBITDA reached $27.1 million, up 14% from Q1.
Inspired repaid $10 million of debt principal during Q2 and more than $23 million year-to-date. It also repurchased approximately 320,000 shares for $2.6 million during the quarter and more than 700,000 shares year-to-date.
KEY QUOTES:
“We have demonstrated resilience in the face of the UK remote gaming duty increase that took effect on April 1, with continued market share gains and strong operating outperformance in line with what we had originally anticipated.”
“Virtual Sports has stabilized, and we launched the first of many customers from our SaaS agreement with Playtech, enabling Inspired’s Virtuals to be delivered across Playtech’s established global operator network. With a growing pipeline of new customers and geographies, a strong product roadmap and a new content studio coming online in the fourth quarter, we expect momentum to build through the second half of the year and into 2027.”
Brooks Pierce, President And CEO Of Inspired Entertainment
