Inspired Entertainment is the latest gaming company to detail the measures it is taking to protect its business during the COVID-19 (coronavirus) crisis.

The company says it has temporarily closed its physical locations in line with government restrictions, and its management and Board of Directors have implemented measure to maintain financial flexibility and preserve liquidity.

Discussing the measures Executive Chairman of Inspired, Lorne Weil, said:

“The exceptional team and capabilities we have built, as witnessed in our fourth quarter 2019 results, strongly position us to navigate this unprecedented environment. Alongside our concern for the well-being of our employees, our priority is to steadfastly strengthen our financial flexibility, prioritize investments, and reduce our expenditures in this time of uncertainty.”

Over the past couple of weeks, Inspired has drawn down around $24.9 million on its revolving credit facility to give additional near-term liquidity, and expenditures on material capital have been postponed or cancelled.

The company has also furloughed staff, reduced hours and pay, and implemented additional measures across its entire workforce, in an effort to keep monthly payroll under $2 million.

Commenting on those measures, Weil added:

“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.”

However, despite all the bad news, Inspired has reported that its Virtual Sports and Gaming businesses is providing an “important cushion” against the cessation of its land-based business, and that its customers are experiencing “significant demand from consumers in the US, Europe and Australasia to bring Virtual Sports onto their respective systems as rapidly as possible, give the lack of live sports content for wagering.”

The company says it is continuing to monitor the situation, and is looking forward to resuming normal operations as soon as conditions permit.

AYO.NEWS says:

Company after company is furloughing staff, cutting costs and bracing for a long crisis. Earlier today we reported Scientific Games had slashed pay, furloughed staff and set up a hardship fund, while Swedish operator Svenska Spel has also furloughed most staff and cancelled a proposed dividend.

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