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Coronavirus Damages Inspired Entertainment Revenue Following Land Site Closures
Gaming hardware provider Inspired Entertainment has joined the list of companies whose revenue has been hit in the wake of the coronavirus, with many brick-and-mortar sites using their systems closed as a result of the pandemic.
According to iGamingBusiness.com, the impact caused by those closures has pushed Inspired to cut cash payroll expense to less than $2 million per month—a reduction of around 70 percent—as well as drawing just under $25 million from in credit to secure short-term liquidity.
The company—which was founded in 2002—has “more than 58,000 machines” stationed at sportsbooks, bars and other sites, effectively all of which will be out of use during a lockdown.
Executive chairman, Lorne Weil, had little idea of when normal operations would be able to resume, though it’s hoped the measures taken will allow Inspired Entertainment to break even by May:
“We have taken these decisive actions, which we believe are appropriate for our current level of business, as we prepare our company to withstand a potentially prolonged period of impaired revenue, including the loss of much of our retail revenue.
“At this point, we have limited visibility as to when our customers' land-based locations may reopen. We believe our actions are appropriate steps to preserve our liquidity given the current environment.
“That said, we continue to undertake aggressive efforts to reduce our operating expenses on an interim basis and expect to report further as these steps are implemented.”
The European soccer season has been delayed until further notice due to COVID-19. The 2020 NBA, MLB and NHL campaigns have also been delayed as a result of the respiratory illness, while the coming NFL season could also be delayed.