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NEW YORK – Inspired Entertainment, Inc. (NASDAQ: INSE), a business-to-business gaming content and technology provider, has secured a new contract with Mecca Bingo, a leading UK bingo operator. The five-year agreement, valued at approximately $12.7 million, involves the supply of 170 advanced gaming machines to Mecca Bingo venues, adding to the existing machines in operation.
The deal includes a complete service package to maintain machine performance and longevity, aimed at enhancing the customer experience in bingo halls across the UK. "Our advanced gaming machines are designed to provide a superior entertainment experience," said Peter Davies, Managing Director (Leisure) of Inspired.
The installation of the gaming machines will commence immediately, with a phased approach to ensure smooth integration within Mecca Bingo's multiple locations. Mark Jepp, Slots Director of Mecca Bingo, emphasized the importance of the new machines and servicing agreement in providing the best bingo experience.
Mecca Bingo has a long-standing reputation for its vibrant bingo halls and dedication to a welcoming atmosphere for players. This partnership underscores their commitment to innovation in the gaming industry.
Inspired operates in around 35 jurisdictions globally, supplying gaming systems for numerous gaming machines, virtual sports products, digital games, and leisure solutions. The company's diverse portfolio caters to a wide audience, presenting opportunities for operator revenue growth.
In other recent news, Inspired Entertainment, Inc. has fortified its position in the Canadian market through a new agreement with the Alberta Gaming, Liquor and Cannabis (AGLC). This deal comes after a successful trial period, resulting in AGLC's decision to purchase 150 Valor gaming terminals, expected to be fully integrated by the end of the second quarter of 2024. Furthermore, Inspired Entertainment faced substantial expenses from accounting restatements and delayed equipment sales in Q1 2024.
However, the company is hopeful for a significant EBITDA improvement in Q2 2024, and growth in its Interactive business. In addition, the firm is set to launch a Hybrid Dealer Roulette game in the summer and is focusing on cost reduction strategies to improve margins and cash flow in the second half of 2024. Despite the bearish outlook due to Q1 expenses, Inspired Entertainment foresees promising growth trajectories in the Interactive and Virtuals businesses. These recent developments suggest that Inspired Entertainment remains committed to its growth strategy and profitability targets.
InvestingPro Insights
Inspired Entertainment, Inc. (NASDAQ: INSE) has shown promising financial metrics and analyst expectations that could be of interest to investors following the announcement of their new contract with Mecca Bingo. According to InvestingPro data, the company has a market capitalization of approximately $208.58 million and boasts an impressive gross profit margin of 60.65% for the last twelve months as of Q1 2024. This gross profit margin is a testament to the company's ability to manage its cost of goods sold effectively and maximize its profit from sales.
InvestingPro Tips highlight that Inspired Entertainment is expected to see net income growth this year, which may be a reflection of strategic contracts such as the one with Mecca Bingo. Analysts also predict the company will be profitable this year, aligning with the positive outlook on net income growth. These insights suggest a robust financial health and potential for future profitability, which could be critical information for investors considering the company's prospects.
Despite recent market volatility, with the stock experiencing a significant drop of -14.63% over the last week, the company's fundamentals, including a strong gross profit margin and the anticipation of net income growth, remain intact. It's worth noting that Inspired Entertainment does not pay a dividend to shareholders, which could be a strategic decision to reinvest earnings back into the company for further growth and development.
For investors seeking a deeper analysis, InvestingPro offers additional tips on Inspired Entertainment, Inc., which can be found at https://www.investing.com/pro/INSE. These insights could provide further guidance on the company's performance and potential investment opportunities.
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