Inspired Entertainment announced the launch of its premium iGaming portfolio in South Africa, partnering with six operators including Hollywood Bets and Betway. The move gives the company access to a market projected to double in size by 2030, positioning it to capture a significant share of the region’s growing online gaming demand.
The launch is part of Inspired’s broader strategy to increase its digital mix and expand into high‑growth regulated markets. Leveraging its existing partnership with Light & Wonder and the Light & Wonder iGaming marketplace, the company can quickly deploy its interactive and virtual sports content to a broad customer base in South Africa.
Inspired’s Q4 2025 results showed revenue of $77.2 million, beating estimates of $75.6 million, while the company posted a net loss of $7.2 million and an adjusted net loss of $5.1 million. The Interactive segment drove a 53% year‑over‑year revenue increase and a 60% rise in adjusted EBITDA, reflecting the company’s shift toward higher‑margin digital operations. In contrast, the Virtual Sports segment saw a 19% revenue decline in FY 2025, largely due to regulatory tax overhauls in Brazil.
The company’s adjusted EBITDA margin expanded to 42% in Q4 2025 from 37% in Q4 2024, underscoring the benefit of its digital transformation. However, the EPS of –$0.18 fell short of the consensus estimate of $0.24, a miss attributed to restructuring costs and debt‑related expenses that offset the margin gains.
CEO Brooks Pierce said the South Africa launch is an “important milestone” in the company’s expansion, while noting that the digital mix is expected to exceed 60% of total EBITDA in FY 2026. Management guided for FY 2026 adjusted EBITDA of $112–$118 million, signaling confidence in continued growth as the company scales its digital core.
The expansion into South Africa strengthens Inspired’s global presence and supports its goal of achieving a 60% digital mix by 2027. While the company faces headwinds from restructuring costs and a decline in the Virtual Sports segment, the strong performance of the Interactive segment and the new South African launch provide a tailwind that should help offset short‑term profitability pressures.
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