Inspired Entertainment (INSE) 8 Aug 24 2024 Q2 Earnings call transcript

Inspired Entertainment's second quarter earnings call for 2024 presented a comprehensive overview of the company's financial performance and strategic initiatives. The call, led by Executive Chairman Lorne Weil, CEO Brooks Pierce, and CFO Marilyn Jentzen, highlighted the company's strong financial position and promising growth opportunities in the interactive gaming segment.

Financial Highlights and Growth Drivers

The company reported a significant sequential increase in EBITDA for the second quarter, with Virtual Sports remaining the highest performing business segment. The interactive business, driven by the success of new products and customer acquisition, showed a 40% revenue growth year-over-year and 69% EBITDA growth. The Harbir dealer initiative, which is expected to become the largest component of the interactive portfolio, was emphasized as a key growth driver for the company.

Interactive Segment and Market Expansion

The interactive segment has been a major contributor to Inspired Entertainment's growth, with notable achievements such as serving 100% of the Connecticut market through FanDuel and reaching 8% market share for slots in the U.K. The success of hybrid dealer in New Jersey and Michigan, as well as the upcoming launch of roulette games, points to a promising outlook for this segment.

Virtual Sports and Gaming Segment

Despite facing some headwinds in the Virtual Sports segment, the company remains optimistic about its performance improvement in the second half of the year. The recent launch of eSports virtual games and the planned rollout of roulette games are expected to boost revenue and EBITDA contributions.

Strategic Partnerships and Expansion

The company's strategic partnerships, such as the agreement with BetMGM for hybrid dealer and the installation of Vantage terminals with Evoque, are seen as significant growth drivers for the Gaming segment. The expected increase in revenue and EBITDA from the deployment of new terminals and content in the U.K. and other markets underscores the company's growth potential.

Looking Ahead

In the coming quarters, the company is focused on expanding its presence in key markets like Brazil and South Africa, as well as launching new products and geographies. The company's optimistic outlook for growth, coupled with strategic initiatives like hybrid dealer and roulette games, positions Inspired Entertainment for a strong performance in 2025.

In conclusion, Inspired Entertainment's second quarter earnings call highlighted the company's strong financial performance and strategic growth initiatives. With a focus on expanding its interactive portfolio and strategic partnerships, the company is well-positioned for continued growth in the gaming industry.