Financial Data and Key Metrics Changes - EBITDA for Q3 2021 was $30.1 million, exceeding guidance and representing an 89% increase from $15.9 million in Q3 2020 and a 70% increase from $17.7 million in Q4 2019 [6][39] - Overall revenue grew by 29% on a reported basis and 21% on a constant currency basis compared to the same quarter last year [35] - Adjusted EBITDA grew 89% on a reported basis and 80% on a constant functional currency basis, with an overall adjusted EBITDA margin of 38.8%, up from 31.4% last year [39] Business Line Data and Key Metrics Changes - Virtual Sports revenue increased by 27%, Interactive revenue grew by 73%, Leisure revenue surged by 92%, and Gaming revenue rose by 28% compared to the same quarter last year [37] - The Leisure segment achieved record earnings power, reflecting the successful integration of the Novomatic acquisition [16] - The Interactive business is expected to account for about 50% of EBITDA in 2022, driven by new games and market expansions [9][19] Market Data and Key Metrics Changes - Land-based incomes were at 94% of pre-pandemic levels in July and approximately 100% in August and September [38] - Online incomes reached approximately 250% of pre-COVID levels by September [38] - The North American market is showing growth potential, with the company expanding into new jurisdictions like New Jersey, Michigan, and Québec [19][30] Company Strategy and Development Direction - The company is evolving into content-led online businesses and retail gaming, focusing on expanding its Virtual Sports and Interactive segments [15][16] - There is a strategic initiative to diversify the Interactive business into the lottery space, with the first iLottery initiative launched with Loto-Québec [13][22] - The company is actively seeking M&A opportunities to enhance business development and leverage its improved financial flexibility [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's performance, indicating that results reflect a return to normalcy rather than pent-up demand [38] - The company anticipates continued growth in its Virtual Sports and Interactive businesses, with expectations for significant contributions to EBITDA in 2022 [9][64] - Management acknowledged the challenges posed by COVID-19 but emphasized the resilience of the business and its ability to adapt [10][27] Other Important Information - The company reported a net cash flow of approximately $13 million for the quarter [9] - Cash increased from $24.5 million at the start of the quarter to $37.1 million by the end [43] - The fair value of the warrant liability resulted in a $17 million benefit, but even without this, net income would have been positive by nearly $8 million [41][42] Q&A Session Summary Question: Thoughts on iLottery ramp-up and early investments - Management expects meaningful revenue from iLottery to begin in the second half of next year, with initial investments impacting P&L [46][47] Question: M&A environment and pipeline - The company remains open to M&A opportunities and is focused on leveraging its financial flexibility for potential acquisitions [48][49] Question: Update on Interactive license in Pennsylvania - The timeline for the interactive license in Pennsylvania remains uncertain, with expectations for potential activation in the first quarter of next year [51][52] Question: Content usage for iLottery relative to iGaming - The company has over 150 games in its library, which can be adapted for iLottery, and is targeting North American markets for expansion [54][55] Question: Launch timing with FanDuel and Rush Street Interactive - FanDuel's launch may take longer than expected due to technical issues, while Rush Street's launch is imminent [57][58] Question: Normalized earnings profile and adjustments - Management indicated that there are no significant one-time costs affecting the Q3 results, and the quarter reflects a normalized profitability profile [59][60] Question: Growth foundation for Virtuals and Interactive - Management expects continued growth in Virtuals and Interactive, projecting these segments to contribute significantly to future EBITDA [62][64] Question: Similarities of games in different markets - The company believes that games developed for Illinois can be successfully adapted for Oregon and West Virginia with minimal changes [66][68]

| --- | --- | |-------|-------| | | | | | | Safe Harbor / Non-GAAP Financial Disclosures 2 Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding our business strategy, plans and objectives and our expected or contemplated future operations, results, financial condition, beliefs and intentions. In addition, any statements ...

Inspired Entertainment, Inc. (NASDAQ:INSE) Q2 2021 Earnings Conference Call August 12, 2021 8:00 AM ET Company Participants Lorne Weil - Executive Chairman Brooks Pierce - President & COO Stewart Baker - CFO & EVP Conference Call Participants Barry Jonas - Truist Securities Chad Beynon - Macquarie Research Ryan Sigdahl - Craig-Hallum Operator Good morning, everyone, and welcome to the Inspired Entertainment Second Quarter 2021 Conference Call. [Operator Instructions]. I'll begin today's conference call by r ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Washington, D.C. 20549 For the transition period _______________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-36689 For the quarterly period ended June 30, 2021 OR | Delaware | 47-1025534 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organizatio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period _______________ Commission File Number: 001-36689 INSPIRED ENTERTAINMENT, INC. (Exact name of registrant as specified in its charter) | Delaware | 47-1025534 | | --- | -- ...

Inspired Entertainment, Inc. (NASDAQ:INSE) Q1 2021 Earnings Conference Call May 10, 2021 9:00 AM ET Company Representatives Lorne Weil - Executive Chairman Brooks Pierce - Chief Operating Officer and President Conference Call Participants Operator Good morning, everyone, and welcome to the Inspired Entertainment’s First Quarter 2021 Conference Call. All participants will be in a listen-only mode for the duration of the call. There will not be an opportunity to ask questions. [Operator Instructions]. Please ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ COMMISSION FILE NUMBER: 001-36689 INSPIRED ENTERTAINMENT, INC. (Exact name of registrant as specified in its charter) (I.R.S. Employer Identification Numb ...

Financial Data and Key Metrics Changes - In October 2020, the company reported EBITDA of $6.8 million with a margin of 32% and revenues of $21.2 million, which was nearly 20% above the EBITDA of October 2019 [5][6] - The company ended the year with over $47 million in cash and an undrawn revolver of nearly $28 million, totaling about $75 million in liquidity [9][10] - The company expects an annualized EBITDA level that will exceed the previously discussed baseline of $80 million due to growth and synergies from the Novomatic acquisition [13][32] Business Line Data and Key Metrics Changes - The online business doubled in size between Q4 2019 and Q4 2020, with a significant portion of growth coming from multi-year recurring revenue contracts [6][25] - The virtual sports segment saw a 90% increase in recurring revenue in Q4 2020 and a 58% increase for the entire year [21] - The interactive segment also doubled in size in 2020, driven by successful integration and an increase in game releases by 55% [25][26] Market Data and Key Metrics Changes - The UK market is expected to reopen on April 12, 2021, with betting shops allowed to operate under certain restrictions [17] - The company anticipates a quick return to prior revenue levels in various markets, including Greece and Italy, as lockdowns ease [18][56] - The Pennsylvania Lottery reported a 255% increase in sales in 2020 compared to 2019, despite closures [23] Company Strategy and Development Direction - The company is migrating its Italian gaming business to a recurring revenue model, which is expected to significantly increase margins [19] - The focus remains on expanding the online business while preparing for the reopening of retail operations [30][32] - The company is optimistic about the growth of its online business and the recovery of its retail business, which is expected to benefit from increased demand and a lower cost base [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the earnings power of the business, anticipating levels of income beyond previous records as retail reopens and online growth continues [59][61] - The company is confident that the omnichannel strategy will enhance both online and retail performance as customers return to physical locations [60][61] - Management noted that the impact of potential UK regulations is not expected to materially affect the business, as many changes have already been incorporated [38][40] Other Important Information - The company has successfully launched new products, including the Virtual Plug & Play (VPP) for online customers, which integrates seamlessly into existing websites [21][22] - The company is expanding into new markets, including Michigan and West Virginia, and has recently launched operations in Spain and Germany [29] Q&A Session Summary Question: Potential online restrictions from the UK and their impact - Management believes that potential regulations will direct more business to regulated markets, benefiting the company [36][38] Question: Forward strategy on route penetration domestically - The company plans to aggressively pursue existing routes while also preparing for new market opportunities [41][42] Question: Expectations for the UK market reopening - Management is optimistic about a quick rebound in retail and expects strong customer demand upon reopening [45][46] Question: Growth expectations for the online segment in 2021 - Management anticipates continued growth in the online segment, potentially mitigating any softening from retail reopening [47][48] Question: Clarification on debt repayment - Management clarified that debt was paid down on the revolver, and interest payments were made at the start of the quarter [50] Question: Recovery in other markets and seasonality - Management indicated that recovery is more about the timing of retail reopening rather than seasonality, with expectations for a return to normal levels by the second half of the year [53][56]

Inspired Entertainment, Inc. (NASDAQ:INSE) Q3 2020 Earnings Conference Call November 12, 2020 9:00 AM ET Company Participants Lorne Weil – Executive Chairman Brooks Pierce – President and Chief Operating Officer Stewart Baker – Executive Vice President and Chief Financial Officer Conference Call Participants David Bain – ROTH Capital Jordan Bender – Macquarie Ryan Sigdahl – Craig-Hallum Capital Group Operator Good morning, everyone, and welcome to the Inspired Entertainment Third Quarter 2020 Conference Cal ...

Revenue Performance - For the three months ended September 30, 2020, approximately 79.6% of revenue was generated in the UK, compared to 60.2% in the same period of 2019[102]. - During the nine months ended September 30, 2020, approximately 74.5% of revenue was derived from the UK, compared to 61.7% in the same period of 2019[103]. - Approximately 20% of revenue for the three months ended September 30, 2020, came from sales outside the UK, down from 40% in the same period of 2019[105]. - Total reported revenue for the three months ended September 30, 2020 increased by $33.5 million, or 125.9%, to $60.1 million, including $24.3 million from Acquired Businesses and $9.3 million from VAT-related income[115]. - Total revenue for the three months ended September 30, 2020, increased by $7.2 million to $25.5 million, representing a 39.3% increase compared to the same period in 2019[151]. - Total revenue for the nine months ended September 30, 2020, increased by $41.0 million, or 47.2%, to $128.0 million, significantly impacted by COVID-19 restrictions[192]. Profitability and Loss - Net operating profit was $8.2 million compared to a net operating loss of $5.7 million in the prior period, largely due to VAT-related income[126]. - Net profit for the period was $0.3 million compared to a net loss of $8.5 million in the prior period, primarily due to VAT-related income and growth in Virtual Sports[132]. - Net operating loss for the nine months ended September 30, 2020, was $12.9 million, a 19.4% increase compared to the previous year[191]. - The company reported a net loss of $41.6 million for the nine months ended September 30, 2020, compared to a net loss of $24.2 million in the prior year[255]. Expenses and Costs - Cost of sales, excluding depreciation and amortization, increased by $6.7 million, or 95.5%, to $13.7 million, with $7.2 million attributable to Acquired Businesses[119]. - Selling, general and administrative expenses rose by $10.4 million, or 90.5%, to $21.9 million, driven by $12.1 million from Acquired Businesses[121]. - Selling, general and administrative expenses increased by $22.6 million, or 58.0%, to $61.6 million, driven by incremental expenses from Acquired Businesses[200]. - Depreciation and amortization increased by $5.7 million, or 68.6%, to $14.0 million, driven by Acquired Businesses[125]. - Depreciation and amortization rose by $12.8 million, or 47.4%, to $39.9 million, driven by incremental depreciation from acquired businesses[203]. Market and Product Development - The company is focused on expanding into underpenetrated markets and newly regulated jurisdictions to add new customers[95]. - The company aims to develop new omni-channel products to extend its strong positions in Virtual Sports, Interactive, and SBG[95]. - The company launched Scheduled Online Virtuals in Turkey and New Jersey, marking strategic expansions into new markets[171]. Customer Metrics - Customer Gross Win per unit per day decreased by £4.82, or 6.5%, to £69.24[134]. - Customer Net Win per unit per day decreased by £2.24, or 4.2%, to £50.85[134]. - Customer Gross Win per unit per day in the UK market increased by 7.1%, driven by recovery post COVID-19 shutdowns[143]. - Customer Net Win per unit per day in Italy decreased by 47.9% compared to the previous year, primarily due to increased gaming taxes and the impact of card readers[146]. - The number of live customers at the end of the period increased to 129, up by 26.5% from 102 in 2019[166]. - Average installed base for SBG terminals decreased by 2,066 units, or 5.9%, to 32,698[134]. Acquisitions and Business Segments - The company completed the acquisition of the Gaming Technology Group on October 1, 2019, enhancing its product portfolio and distribution capabilities[96]. - Acquired Businesses service revenue for the quarter was $22.4 million, with $5.9 million generated from Pub customers for gaming machines and other rental products[187]. - Total revenue from Acquired Businesses Segment was $53.5 million, with service revenue at $45.6 million and hardware revenue at $7.9 million[239]. - Acquired Businesses hardware revenue was $1.9 million, including the sale of 173 machines and spare parts[189]. Cash Flow and Liquidity - Net cash provided by operating activities increased to $31.5 million from $22.4 million year-on-year, representing a $9.1 million increase[255]. - Net cash used in investing activities rose to $22.0 million, an increase of $5.5 million due to higher spending on property and equipment[263]. - As of September 30, 2020, the company had liquidity of $43.9 million in cash and cash equivalents, compared to $29.6 million as of September 30, 2019, representing a 48.5% increase[265]. - The company reported a working capital inflow of $17.3 million for the nine months ended September 30, 2020, compared to an inflow of $11.0 million for the same period in 2019, indicating a 57.3% increase[265]. Debt and Obligations - The company had total contractual obligations of $440.3 million as of September 30, 2020, with $31.6 million due within one year[284]. - The company’s long-term debt included a senior term loan facility of £145.8 million and €93.1 million, with cash interest rates of 8.97% and 7.75% per annum, respectively[274]. - There were no breaches of the debt covenants in the periods ended September 30, 2020, and September 30, 2019[282].