Inspired Entertainment Provides Update on Fourth Quarter and Year End Reporting Timeline
- None.
- Delayed filing of Form 10-K due to accounting policy review.
- Resources diverted for restatements impacted financial statement preparation.
- Potential risk of missing filing deadline if further delays occur.
Insights
The delayed filing of Inspired Entertainment's Form 10-K due to a comprehensive review of accounting policies and the subsequent restatements could signal to investors and analysts a need for caution. This process, while it may indicate thoroughness and a commitment to accuracy, also introduces uncertainty regarding the company's financial health. It is important to consider the potential impact of these restatements on the company's stock price, as the market generally reacts to uncertainty with volatility. Investors will be keen to review the revised financials to assess any material changes that could affect their valuation of the company.
Moreover, the affirmation of the fourth quarter revenue and Adjusted EBITDA being in-line with consensus does provide a temporary reassurance. However, the actual numbers, once released, will be the true test of the company's performance. Stakeholders should monitor the situation closely, as any deviations from the expected results could lead to significant stock price movement.
From a market perspective, Inspired Entertainment's position as a B2B provider in the gaming industry means that its financial performance is an indicator of the sector's health. The delay in filing and the need for restatement may reflect industry-wide challenges or company-specific issues. Competitors and partners will likely scrutinize the restated financials to gauge Inspired's operational efficiency and financial management. It's also important to understand how this news may affect client confidence, as trust in a company's reporting standards is paramount in B2B relationships.
Despite the delay, the confirmation of expected earnings aligning with consensus may help mitigate immediate market concern, but the long-term effects will depend on the outcomes of the restated financials. If the restatements lead to a stronger financial position, it could enhance market confidence in Inspired. Conversely, if they reveal significant discrepancies, it could harm the company's reputation and market standing.
The filing of a Form 12b-25 indicates that Inspired Entertainment is aware of its regulatory obligations and is communicating transparently with the SEC and its investors. The legal implications of such a filing are twofold. Firstly, it demonstrates a proactive approach to compliance, potentially mitigating any regulatory penalties. Secondly, the restatement of financials could expose the company to legal scrutiny if the restatements are a result of non-compliance with financial reporting standards.
Investors should be aware that restatements can sometimes lead to legal actions if they are connected to inaccuracies or misrepresentations in previously reported financials. The company's thorough review of its accounting policies could be seen as a positive step in strengthening its governance practices, which may in turn reinforce investor confidence in the long run.
Reiterates Previously Reported Expectations Regarding Fourth Quarter Results
NEW YORK, March 18, 2024 (GLOBE NEWSWIRE) -- Inspired Entertainment, Inc. (“Inspired” or the “Company”) (NASDAQ: INSE), a leading B2B provider of gaming content, technology, hardware and services, announced it has filed a Form 12b-25, Notification of Late Filing, with the U.S. Securities and Exchange Commission (“SEC”) related to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The Company is working diligently to finalize its financial statements and currently expects to file its Form 10-K on or before April 15, 2024. During the fourth quarter of 2023, the Company devoted considerable resources to undertaking a broad-based review of its accounting policies in connection with the restatements of the Company’s previously issued financial statements, and therefore, the Company’s ability to commence the preparation of its December 31, 2023 financial statements for inclusion in its 2023 Form 10-K was delayed.
The Company continues to reiterate its earnings statements made on February 27, 2024, that it expects fourth quarter Revenue and Adjusted EBITDA to be in-line with consensus, as of such date. Further disclosures are included in the Form 12b-25, as filed with the Securities and Exchange Commission on March 15, 2024.
About Inspired Entertainment, Inc.
Inspired offers an expanding portfolio of content, technology, hardware and services for regulated gaming, betting, lottery, social 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 approximately 50,000 gaming machines located in betting shops, pubs, gaming halls and other route operations; virtual sports products through more than 32,000 retail venues and various online websites; interactive games for 170+ websites; and a variety of amusement entertainment solutions with a total installed base of more than 16,000 terminals. Additional information can be found at www.inseinc.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as "expects," "believes," "estimates," "projects," "intends," "plans," "seeks," "may," "will," "should" or "anticipates" or the negative or other variations of these or similar words. Although the Company believes that its expectations are based on reasonable assumptions within the bounds of the Company's knowledge of its business, there can be no assurance that actual results, including the impact of the restatement, will not differ materially from its expectations. Meaningful factors that could cause actual results to differ from expectations include, but are not limited to, risks relating to the final impact of the restatement on the Company's financial statements; the impact of the restatement on the Company's evaluation of the effectiveness of its internal control over financial reporting and disclosure controls and procedures; delays in the preparation of the financial statements; the risk that additional information will come to light during the course of the Company's financial statement and accounting policy review that alters the scope or magnitude of the restatement; and the risk that the Company will be unable to obtain, if needed, any required waivers under its debt indenture with respect to a significant delay in filing its periodic reports with the SEC, which could affect its liquidity; and the risk that the Company may not be able to satisfy the terms of the Plan of Compliance it has submitted to Nasdaq, or that Nasdaq will provide any other accommodations to the Company. The Company does not intend to update publicly any forward-looking statements, except as required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this news release may not occur.
Contact:
For Investors
IR@inseinc.com
+1 (646) 277-1285
For Press and Sales
inspiredsales@inseinc.com
FAQ
Why did Inspired Entertainment, Inc. file a Form 12b-25 with the SEC?
When does Inspired Entertainment, Inc. expect to file its Form 10-K?
What did Inspired Entertainment, Inc. focus on during Q4 of 2023?
Are Inspired Entertainment, Inc.'s revenue and EBITDA projections for Q4 2023 on track?
What disclosures are included in the Form 12b-25 filed by Inspired Entertainment, Inc.?
