Adjusted EBITDA
Inspired Generates Revenue of $71.7M in Fourth Quarter of 2020
Inspired Entertainment has generated total revenue of $71.7m and adjusted EBITDA of $34.9m in the fourth quarter of 2020.
These results include a payment from a UK LBO customer related to the company’s contractual revenue share of their value-added tax rebate, which positively impacted revenue by $32.5m and adjusted EBITDA by $31.7 million (in conjunction with third party fees).
Lorne Weil, Executive Chairman of Inspired, said: “October was a stellar month and indicated how quickly we could recover before our land-based businesses went back into lockdown in November and December.”
“Our October monthly revenue of $21.2m and adjusted EBITDA of $6.8m, or 32 per cent of total revenue, was nearly 20 per cent above October 2019 and the highest monthly levels we experienced in 2020, excluding the VAT-related income.
“This follows the general pattern we saw of sequential monthly growth throughout the third quarter 2020 following the second quarter lockdown.
“Importantly, year to year growth in October occurred despite the fact that October performance was impacted by pub curfews in early October and the introduction of tiered closures in the second half of the month.”
The Company’s business across its online virtuals and interactive channels showed strength in the quarter with revenues increasing sequentially from $3m in October to $3.3m in November to $4.2m in December. This reflects year-over-year growth of 89%, 95% and 99%, respectively, over $1.6m, $1.7m and $2.1m in the same months in 2019.
Weil continued: “While the UK is expected to remain on lockdown through the first quarter 2021, based on the UK Prime Minister’s public statement on February 22, and assuming achievement of key goalposts, the UK will ease lockdown restrictions in stages with LBOs reopening in April, pubs and holiday parks reopening in May and an end of the lockdown by June 21.
“By the end of the second quarter 2021, assuming the UK ends its lockdown, we would expect our UK business to be on a run rate similar to where we were in the third quarter 2020 when we generated $17.1m in adjusted EBITDA, excluding VAT-related income, at current exchange rates.”
Weil concluded: “Furthermore, by the third quarter 2021, we expect to have the added benefit of our online business having grown substantially year over year with continuing expectations for growth from that higher starting point due to a strong business development pipeline, including new commercial agreements in existing territories, jurisdictional expansion in North America, Europe and South America and continued strong product development across both Interactive and online virtual sports.
“We also expect to have our holiday park business back to pre-pandemic levels, which was not the case in the third quarter 2020 given local restrictions.
“We’re confident that, as we did last time, we will recover quickly once lockdowns are lifted to emerge from this pandemic even stronger than before with a lower cost structure, improved liquidity, a larger customer base and increased growth opportunities.”
Codere Online has released its financial results for the first quarter of 2022. The multinational gaming firm posted revenues of $304.8m which represents a recovery of 83% of total revenues before the pandemic hit.
The company cited the easing of restrictions across its operational markets, particularly in Argentina, Mexico, and Spain, for its economic recovery. The three aforementioned markets have noted a 92% of turnover recovery from pre-pandemic levels.
Furthermore, adjusted EBITDA has increased significantly to $50.5m, up 1291.4% from the $3.6m recorded in Q1 of 2021. The firm attributed this to all markets contributing positively but specifically Argentina, Mexico, and Spain.
Mexico contributed revenues of $51.8m, a 62% recovery on those made in Q1 of 2019 and 126% up on Q1 of 2021. Despite this, Codere noted that this was “somewhat below expectations” due to some restrictions and a downturn in the local economy.
Argentina reached revenues of $76.0m, around 91% of what it achieved in Q1 of 2019 and around 93% up YoY. The company did detail that the market was “still affected internally by the usual macro variables of the country”.
Other Latin American performances saw Uruguay reach revenues of $14.5m, 24% more than in 2020; Panama saw revenues of $16.1m, recovering 81% of the income from before the pandemic; Colombian revenues were $5.2m, 43% above those achieved in Q1 of 2021 and, crucially, exceeding pre-pandemic levels of turnover.
Maintaining its forecasts for the end of the year, Codere outlined its expectations that it will recover 95-100% of its pre-pandemic income levels before the end of the year.
DraftKings has reported revenue of $417m in Q1 2022, an increase of 34% compared to $312m during the same period in 2021.
Revenue for the company’s B2C segment grew to $404m, an increase of 44% compared to the three months ended 31 March 2021.
Adjusted EBITDA outperformed the midpoint of the guidance for the first quarter of 2022 previously provided by DraftKings during its fourth quarter earnings conference call on 18 February 2022 by more than 12%.
“DraftKings delivered significant growth across our key revenue and performance metrics,” said Jason Robins, DraftKings’ co-founder, CEO and chairman of the board.
“We are not seeing any impact from inflationary pressures on customer demand and we continue to improve the user experience by adding breadth and depth to our DFS, mobile sports betting and igaming products.
“We are also improving our efficiency in acquiring and retaining customers and have a strong pipeline of new jurisdictions to enter.”
Jason Park, CFO of DraftKings, said: “We are pleased with our strong revenue and adjusted EBITDA performance in the first quarter, which was driven by healthy underlying customer behaviour and our ability to capture efficiencies.
“Therefore, we are increasing the midpoint of our fiscal year 2022 revenue guidance by $50m and improving the midpoint of our fiscal year 2022 adjusted EBITDA guidance by $75m.”
Caesars Entertainment has reported revenue of $2.7bn for the third quarter of 2021 (Q3 2021), a 93% increase from the prior-year period.
Las Vegas operations represented $1.01bn of the total revenue, with Regional representing $1.49bn. Caesars Digital amounted to $96m, with Managed and Branded and Corporate and Other representing $79m and $1m respectively.
The company reported a net loss of $233m compared to a net loss of $926m for the prior-year period, while Adjusted EBITDA was $882m versus $433m for the prior-year period.
Adjusted EBITDA excluding the group’s Caesars Digital segment was $1bn, versus $420m for the same period in 2020.
Highlights within the period include the appointment of Sandra Douglass Morgan to the company’s Board of Directors, effective 7 November 2021, and the release of the group’s new Corporate Social Responsibility report, which included its Environment, Social and Governance update, and updated long-term targets.
Tom Reeg, CEO of Caesars Entertainment, said: “Our third quarter operating results reflect an all-time quarterly EBITDA record in our Las Vegas segment and a new third quarter EBITDA record for our regional segment.”
“We are encouraged by the early results from our rebranded Caesars Sportsbook launch and we are looking forward to launching additional states by year end and into 2022.”
Bret Yunker, CFO of Caesars Entertainment, said: “As of October 19th 2021, we have repaid a total of $975 million of traditional debt on a year to date basis. When combined with the repricing and issuance of lower cost debt during the third quarter, our pro forma interest expense has been reduced by approximately $75 million on an annual basis.
“We expect further debt reduction to come from strong operating cash flows and expected asset sale proceeds.”
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