INSPIRED ENTERTAINMENT Reports Second Quarter Earnings for Fiscal Year 2023
August 13, 2023
☀️Earnings Overview
On August 9 2023, INSPIRED ENTERTAINMENT ($NASDAQ:INSE) released their fiscal year 2023 second quarter earnings results for the period ending June 30 2023. Total revenue for the quarter increased 12.8% year-over-year to USD 80.4 million, although their net income decreased 45.3% to USD 4.1 million compared to the same period last year.
Market Price
The stock opened at $12.6 and closed at the same price, dropping by 6.1% from its last closing price of 13.4. This decrease can be attributed to the company’s lackluster performance in the quarter, with both revenue and earnings missing estimates. Despite the disappointing results in the second quarter, INSPIRED ENTERTAINMENT has made significant strides to improve the business in other areas. The company has expanded its gaming offerings, while also making key acquisitions in the industry. INSPIRED ENTERTAINMENT also recently launched a new live virtual gaming platform and plans to launch more products in the near future. Overall, INSPIRED ENTERTAINMENT’s second quarter earnings report was disheartening for investors.
However, with new products and services on the horizon, the company’s fortunes could soon turn around. Investors will be watching closely as INSPIRED ENTERTAINMENT continues to move forward with its plans for growth and expansion. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Inspired Entertainment. More…
| Total Revenues | Net Income | Net Margin |
| 299.9 | 17.2 | 5.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Inspired Entertainment. More…
| Operations | Investing | Financing |
| 56.3 | -39 | -6.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Inspired Entertainment. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 353.5 | 403.8 | -1.92 |
Key Ratios Snapshot
Some of the financial key ratios for Inspired Entertainment are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.1% | -6.2% | 16.3% |
| FCF Margin | ROE | ROA |
| 6.0% | -58.3% | 8.6% |
Analysis
GoodWhale recently conducted an analysis of INSPIRED ENTERTAINMENT‘s financials and the findings are quite interesting. According to Star Chart, INSPIRED ENTERTAINMENT has an intermediate health score of 6/10 with regard to its cashflows and debt, indicating that it might be able to pay off debt and fund future operations. Based on our analysis, INSPIRED ENTERTAINMENT is classified as ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Given INSPIRED ENTERTAINMENT’s strengths in growth and weaknesses in profitability and asset, dividend, investors who are looking for high returns from aggressive investments may be interested in this company. Investors who are seeking steady returns and conservative investments should avoid this company due to its higher-risk profile. It could also be an attractive option to investors who are comfortable with higher risk and willing to bear short-term losses for potential long-term gains. More…
Peers
The competition in the gaming industry is becoming increasingly fierce. Inspired Entertainment Inc is up against some tough competition from Greek Organisation of Football Prognostics SA, Galaxy Gaming Inc, and NanoTech Gaming Inc. All of these companies are vying for a piece of the pie in the gaming industry.
– Greek Organisation of Football Prognostics SA ($OTCPK:GOFPY)
The company’s market cap is 4.66B as of 2022 and its ROE is 40.93%. The company’s main business is providing football prognostics and it operates in Greece, Cyprus, Bulgaria, Romania and Serbia.
– Galaxy Gaming Inc ($OTCPK:GLXZ)
Galaxy Gaming is a gaming company that designs, develops, and manufactures casino table games and gaming machines. The company has a market cap of $54.5 million and a return on equity of -17.74%. Galaxy Gaming is headquartered in Las Vegas, Nevada.
Summary
Inspired Entertainment Inc. reported its fiscal year 2023 second quarter earnings results on August 9, 2023 for the period ending June 30, 2023. Total revenue increased 12.8% year-over-year to USD 80.4 million, however net income decreased 45.3% year-over-year to USD 4.1 million. On the same day, the stock price of Inspire Entertainment Inc. fell in response to these results.
Investors may be concerned about the sharp decline in net income and may want to review the details of the report to determine whether the company can return to profitability in the near future. Furthermore, investors may consider the competitive environment to determine whether the company can remain competitive against other competitors.
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