Inspired Entertainment reported a slight decline in , with total earnings standing at $60.4 million, a 3 percent drop compared to the same quarter last year. The decline comes alongside a shift in segment performance, with notable growth in the company’s interactive division but losses in other core areas.
Performance by sector
The company’s gaming segment remained its largest revenue contributor, bringing in $21.7 million during the first quarter. However, this marked a 6 percent decrease from Q1 2024. Leisure revenue also dipped, falling 4 percent year-on-year to $17.9 million.
The virtual sports segment experienced the sharpest decline, with revenue down 30 percent to $8.7 million. In contrast, Inspired’s interactive division showed strong momentum, posting $12.1 million in revenue – a 49 percent increase from the previous year.
EBITDA growth in Interactive
Despite the overall revenue drop, adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) across the business rose by 19 percent year-on-year to $18.4 million. The interactive division played a key role in this increase, recording a 75 percent jump in adjusted EBITDA compared to Q1 2024.
Inspired also narrowed its net loss significantly. The company posted an adjusted net loss of $2.8 million and a total net loss of $0.1 million – down from a $6.4 million loss in the previous year’s first quarter.
Operating income turns negative
Operating income slipped from a $1.6 million profit in Q1 2024 to a $2.1 million loss in Q1 2025. The company attributed this shift to sector revenue declines in gaming, leisure, and virtual sports.
UK market focus
Inspired Entertainment took major steps to strengthen its UK presence during Q1. In January, the company launched Hybrid Dealer Roulette with bet365. This was followed by a new slot game partnership with Caesars Entertainment.
In February, Inspired extended its deal with Moto Hospitality for another five years. March saw another UK move, with a collaboration announced with Ivy Casino.
Earlier in Q1, Inspired released its FY 2024 results. The company posted $297.1 million in revenue for the year – a modest 2 percent rise year-on-year.
CEO’s comment
“We are pleased to report a strong start to 2025, reflecting the continued momentum across our diversified business segments,” said Lorne Weil, Executive Chairman of Inspired.
“Our Interactive segment continues to be a standout performer, with revenue increasing by 49 percent year-over-year, driven by robust growth in the UK and North America. Interactive Adjusted EBITDA grew 75 percent as the Adjusted EBITDA margin expanded approximately 1,000 basis points versus prior year to 64 percent, showcasing the scalability and efficiency of our digital operations. We are excited about the progress in our Hybrid Dealer rollout strategy, including the successful launch of new games and partnerships that position us well for continued future growth.
“In the Gaming segment, we achieved a solid performance with an increase in Adjusted EBITDA compared to last year driven by new terminal deployments in Greece and the UK as well as enhanced efficiency and profitability through our operational initiatives executed in the back half of 2024. The installation of new Vantage cabinets in partnership with William Hill has been completed, driving high single-digit year over year growth and setting a strong foundation for the rest of the year,” he added.
