NEW YORK - Inspired Entertainment, Inc. (NASDAQ: INSE), a prominent business-to-business gaming content provider, has secured a licensing agreement with the National Hockey League (NHL), it was announced today. The deal grants Inspired the rights to create and distribute virtual sports games featuring NHL branding, including team jerseys and logos.
The new licensing agreement allows Inspired to leverage NHL brand assets to craft interactive gaming experiences aimed at hockey fans globally. These upcoming virtual sports games are expected to showcase advanced motion capture technology to enhance realism and player engagement.
Brooks Pierce, President and CEO of Inspired, expressed excitement about the partnership, stating that the new product will cater not only to North American audiences but also to markets such as Scandinavia and Eastern Europe. Pierce emphasized that the agreement complements Inspired's mission to offer sports entertainment that keeps fans connected to hockey, even in the off-season.
Chris Golier, NHL Group Vice President of Business Development and Innovation, also commented on the collaboration. He highlighted Inspired's industry leadership in virtual sports and its potential to engage the NHL's fan base through innovative gaming experiences, contributing to the league's growth worldwide.
Inspired's virtual sports games are already a popular choice across the globe, accessible through numerous retail channels and online platforms in multiple countries. The official launch of the NHL-themed virtual sports products is scheduled for the fourth quarter.
This partnership marks the completion of Inspired's North American suite of premier sports licenses, further enhancing its virtual sports portfolio. The company's offerings are available in about 35 jurisdictions, providing technology and content for tens of thousands of gaming machines, retail venues, and online sites.
The information for this article is based on a press release statement from Inspired Entertainment, Inc.
In other recent news, Inspired Entertainment, Inc. reported a notable financial upswing for the second quarter of 2024, driven by robust EBITDA growth of 56.5% compared to the previous quarter and significant market share gains. The company's interactive segment, especially the hybrid dealer initiative, was a standout performer, contributing to the revenue and EBITDA increase. As part of its growth strategy, Inspired Entertainment has been expanding into new markets, launching innovative products, and entering strategic partnerships such as a service agreement with Evoque and integration with SciGames.
These recent developments have positioned the company for continued success. The company's Virtual Sports segment remains the highest-performing, with EBITDA margins over 80%. Cost-saving measures include transitioning to outsourced manufacturing and consolidating logistics facilities. The company also plans to improve profitability at Halide Park and expand into Brazil and South Africa.
Despite facing challenges in some business segments and in Greece, Inspired Entertainment has reported strong bookings and successful evaluations of terminals with the Alberta Gaming, Liquor & Cannabis Commission in Canada. The company's management is confident that revenue and EBITDA in the second half of 2024 will surpass the first half, with sustainable growth in the interactive segment of around 30% or higher.
InvestingPro Insights
Inspired Entertainment's recent licensing agreement with the NHL aligns well with the company's growth strategy, as reflected in the latest financial data from InvestingPro. The company's revenue growth of 7.56% over the last twelve months as of Q2 2023 suggests a positive trajectory, which could be further bolstered by this new partnership.
One of the InvestingPro Tips highlights that Inspired Entertainment operates with impressive gross profit margins. This is corroborated by the data showing a gross profit margin of 61.47% for the same period. Such strong margins could provide the company with the financial flexibility to invest in developing high-quality NHL-themed virtual sports products.
Another relevant InvestingPro Tip indicates that net income is expected to grow this year. This projection, combined with the company's current operating income margin of 9.42%, suggests that Inspired Entertainment may be well-positioned to capitalize on the potential revenue streams from the NHL licensing agreement.
It's worth noting that InvestingPro offers 6 additional tips for Inspired Entertainment, providing investors with a more comprehensive analysis of the company's financial health and prospects.
The fair value estimate from analysts, as reported by InvestingPro, stands at $14 per share, compared to the previous closing price of $9.27. This potential upside could reflect market expectations for growth initiatives like the NHL partnership.
For readers interested in a deeper dive into Inspired Entertainment's financials and future outlook, InvestingPro offers a wealth of additional insights and data points to inform investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.