There are some 14 virtual sports games that include basketball, football, car racing, horse racing and many more, that are now available for DraftKings clients on both mobile and desktop platforms.
Inspired and DraftKings Sign a Contract for Virtual Sports
13 Week Projected Liquidity Schedule - Approximately $31.8 Million of Projected Cash at July 17, 2020
Company Announces Improvement in Recent Business Trends - Now Projecting Positive Adjusted EBITDA Beginning in April 2020
NEW YORK, April 27, 2020 /PRNewswire/ -- Inspired Entertainment, Inc. ("Inspired" or the "Company") (NASDAQ: INSE) recently provided an updated 13-week projected cash flow forecast to its lenders which showed an improved liquidity profile as compared to a previously provided forecast. Additionally, the Company today announced favorable improvements in recent business trends.
Forward Liquidity Projections
The Company has taken a number of actions over the past few weeks to provide greater financial flexibility and near-term liquidity for its business. Based upon the projections provided to lenders on April 24, 2020 (the "April 24th Projections"), Inspired currently projects having available cash balances of GBP £25.7 million, or $31.8 million, at July 17, 2020, assuming the retail lockdown carries on for this period. This compares favorably to a prior projected cash balance of £10.1 million, or $12.5 million, at July 31, 2020 based upon prior projections provided to lenders on March 24, 2020 (the "March 24th Projections").
Following the projection period underlying the April 24th Projections, management currently expects a further improvement in monthly operating cash uses (excluding debt service), to approximately £0.5 million per month for as long as all retail locations are closed. It should be noted that all projections assume that all retail locations would remain closed for the entire projection period.
Additionally, on April 24th, following the preparation of the April 24th Projections, the Italian Government announced that certain gaming locations (including wagering on both Virtual Sports and live sports) would be permitted to operate beginning May 11, 2020. The April 24th Projections do not include any potential benefit due to these potential retail re-openings.
Furthermore, Inspired currently expects to apply to access certain UK Government-sponsored lending programs which appear targeted to buffering the liquidity position of companies such as Inspired as these companies "reopen" their businesses in the future. Neither set of projections contemplates the receipt of any proceeds from such programs, which can be an important part of any additional capital we may raise in the future. There can be no assurance, however, that Inspired will be able to access these lending programs.
Business Update
Currently, the vast majority of the Company's retail customers remain on lockdown due to the COVID-19 pandemic. At the same time, the Company has seen an uptick in demand in certain of its business lines. In light of the absence of live sporting events and as demonstrated by the recent success of the Virtual Grand National and the excitement surrounding the upcoming "The Kentucky Derby: Triple Crown Showdown", Virtual Sports remain an important driver of the Company's business.
In addition to actions previously reported by the Company on March 30th, Inspired has implemented further furloughs across its workforce as well as expense reductions. Following these actions, and in light of recent operating trends, the Company currently expects to have positive Adjusted EBITDA levels beginning in April 2020.
Lorne Weil, Executive Chairman of Inspired said, "As the impact of this pandemic continues to grow, we remain focused on the well-being of our employees, while taking the necessary steps to strengthen our financial flexibility, prioritize investments, and reduce our expenditures in this time of uncertainty. While it is impossible to predict how long this crisis will last, we believe these actions will help us to navigate this environment to ensure our Company's long-term success."
Weil added, "We have been fortunate to see growth in certain of our business lines since the beginning of the COVID-19 crisis, providing us an important cushion against the current cessation in our land-based business. We remain committed to providing our customers with excellent service and products and continue to do our best to accommodate the unprecedented demand in certain business lines, which we see as a significant sign of strength in the longer term."
Weil concluded, "We continue to monitor developments on a real-time basis, and, fortunately, we're starting to see some restrictions on land-based venues have been lifted. We're looking forward to resuming normal operations as soon as conditions permit, as we seek to build upon our positive momentum from our fourth quarter."
About Inspired Entertainment, Inc.
Inspired offers an expanding portfolio of content, technology, hardware and services for regulated gaming, betting, lottery, and leisure operators across retail and mobile channels around the world. The Company's gaming, virtual sports, interactive and leisure products appeal to a wide variety of players, creating new opportunities for operators to grow their revenue.
The Company operates in approximately 35 jurisdictions worldwide, supplying gaming systems with associated terminals and content for more than 50,000 gaming machines located in betting shops, pubs, gaming halls and other route operations; virtual sports products through more than 44,000 retail channels; digital games for 100+ websites; and a variety of amusement entertainment solutions with a total installed base of more than 19,000 devices. Additional information can be found at www.inseinc.com.
Inspired and DraftKings Sign a Contract for Virtual Sports
DraftKings signs a contract with Inspired, receives access to V-Play Products. An insight of the V-Play Products by Inspired Brooks Pierce comments on the contract for virtual sports.
The two gaming and betting giants – Inspired Entertainment and DraftKings – will sign a partnership contract for virtual sports.
Inspired and DraftKings Sign Virtual Sports Contract
On April, 16 when games technology Inspired Entertainment said that the company had signed a contract with sports betting and daily fantasy operator DraftKings. Based on the contract agreement, DraftKings has been granted access to Inspired’s innovative V-Play Plug & Play product. This has enabled DraftKings to incorporate its own company products into Inspired’s platform.
There are some 14 virtual sports games that include basketball, football, car racing, horse racing and many more, that are now available for DraftKings clients on both mobile and desktop platforms.
With this contract, DraftKings and Inspired will effectively take over the market space that was left due to the worldwide cancellation of sports games, driving a strong foray into simulated sports events.
DraftKings also confirmed that it is going public.
Inspired’s V-Play Products
The partnership will be beneficial for DraftKings as the company can tap into Inspired’s V-Play products. Those are the V-Play Basketball and V-Play NFLA Legends of Football, each with their unique design and scalable features.
The V-Play Basketball, labelled “world’s best virtual basketball product”, gathers popularity with realistic animations and graphics. It’s available at land-based retail gaming spaces but also online. It includes a variety of teams and clients can bet on live basketball games. Inspired has achieved great success and revenue since the launch of V-Basketball back in 2019.
On the other hand, we have the V-Play NFLA Legends Football. Inspired’s product is famous for including the biggest NFL teams and NFL legends in one game. The game is fast-paced with top of the shelf graphics and events on every three minutes. NFLA includes 11 legendary teams and it’s also officially licensed.
Brooks Pierce of Inspired Comments on the Contract
Brooks Pierce, Chief Operating Officer and president of Inspired, commented: “We are very excited to team up with DraftKings to bring Virtual Sports to their passionate fans.”
He continued by adding: “Not only do we have the largest and most advanced portfolio of Virtual Sports, we tailor our products to sports fanatics with a combination of fast-paced action, ultra-realistic player simulations and a tremendous breadth of bet types.”
The sports betting entertainment that DraftKings and Inspired offer, takes sports to a new level. Sports games have suffered a lot since the beginning of the year due to the coronavirus outbreak, but the biggest impact that the virus has had so far is to lead to the postponement of the Olympic Games in Tokyo to 2021.
And while games are being postponed or on hold until further notice, virtual sports and betting are available for everyone at every day and time.
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