Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 was $30.9 million, up 22% from the previous year [6] - Full year adjusted EBITDA was $100.1 million, compared to $99.3 million for 2023 [6][7] - The company received a letter from the SEC indicating that their inquiry is now closed with no further action [7] Business Line Data and Key Metrics Changes - The Interactive business saw revenue and EBITDA growth of 45% and 105% respectively in Q4, accounting for approximately 22% of overall company EBITDA [8][9] - The Digital business is expected to approach 60% of EBITDA by year-end, driven by growth in Interactive and modest acceleration in Virtual Sports [12] - The land-based gaming segment had EBITDA growth of 42% year-over-year in Q4, attributed to gaming hardware sales [25] Market Data and Key Metrics Changes - The company noted that in states with both iGaming and Sports Betting, iGaming outperforms Sports Betting by a ratio of 4 or 5 to 1 [9] - The company is optimistic about the potential growth in the Brazilian market, which is expected to become a significant market for them [53] Company Strategy and Development Direction - The company is focusing on enhancing product development in the Virtual Sports segment to replicate the success seen in Interactive [75] - There is a strategic review ongoing for the holiday parks business, with a cautious optimism about a favorable conclusion [37] - The company is actively looking for M&A opportunities that fit their criteria, although nothing is currently on the horizon [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of their business structure, with over 85% of revenue being contractually recurring [13] - The company is optimistic about the future growth of the Virtual Sports business, especially with new innovations and market expansions [34][75] - Management indicated that the current economic environment is being navigated well, with a strong balance sheet and cash position [76] Other Important Information - The company plans to file their 10-K by the end of the week following the earnings call [7] - The company is experiencing a significant year-to-year increase in accounts receivable, impacting year-end cash [15] Q&A Session Summary Question: Challenges in Virtual Sports segment - Management acknowledged that the struggles are primarily driven by one customer but noted stabilization and modest growth in the rest of the business [32][34] Question: Updates on M&A strategy - The company is exploring the sale of holiday parks and remains optimistic about the outcome, while also looking for M&A opportunities that align with their strategy [36][39] Question: U.K. white paper impact - Management expects minimal impact from the upcoming stakes limits and is hopeful for the liberalization of B3 cabinets, which would benefit their sales [42][44] Question: Cash balance expectations - Management indicated that the cash balance is likely to be lower than previously guided due to delays in receivables and accelerated supplier payments [45][46] Question: Virtual Sports growth confidence - Management expressed confidence in the stabilization of Virtual Sports revenue and highlighted strong results from key customers in Brazil [50][53] Question: CapEx needs and cash flow - Management confirmed that CapEx needs are planned and budgeted, with no unexpected expenses anticipated [60][62] Question: Lottery business growth opportunities - Management is excited about the upcoming launch of a cloud-based lottery system and sees significant opportunities in the lottery segment [64][68]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 was $30.9 million, up 22% from the previous year, with full-year adjusted EBITDA of $100.1 million compared to $99.3 million for 2023 [6][8] - The company received a letter from the SEC indicating that their inquiry is now closed, with no further action required [7] Business Line Data and Key Metrics Changes - The Interactive business saw revenue and EBITDA growth of 45% and 105% respectively in Q4, accounting for approximately 22% of overall company EBITDA [8][12] - The Digital business is expected to approach 60% of EBITDA by year-end, driven by growth in Interactive and modest acceleration in Virtual Sports [12][29] - The land-based gaming segment had EBITDA growth of 42% year-over-year in Q4, attributed to gaming hardware sales [25] Market Data and Key Metrics Changes - The company noted that in states with both iGaming and Sports Betting, iGaming outperforms Sports Betting by a ratio of 4 or 5 to 1 [9] - The company is optimistic about the potential growth in the Brazilian market, which is expected to become a significant contributor [53] Company Strategy and Development Direction - The company is focusing on enhancing product development in the Virtual Sports segment, which had previously been under-invested due to the success of Interactive [74] - The company is exploring the sale of its holiday parks segment while maintaining a strong performance in other business areas [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business structure, with over 85% of revenue being contractually recurring [13] - The company anticipates that the eventual spread of iGaming legislation across states is inevitable, providing limitless opportunities [10] Other Important Information - The company plans to file its 10-K by the end of the week following the earnings call [7] - The company is working on a new credit facility expected to be more flexible and likely at floating rates [16] Q&A Session Summary Question: Challenges in Virtual Sports segment - Management acknowledged that the struggles are primarily driven by one customer but noted stabilization and modest growth in the rest of the business [32][34] Question: Update on M&A strategy - The company is exploring the sale of holiday parks and remains open to M&A opportunities that fit their criteria [36][39] Question: U.K. white paper impact - Management expects minimal impact from new stake limits and is hopeful for liberalization of B3 cabinets, which would benefit sales [42][44] Question: Cash balance guidance - Management indicated that cash balance may be slightly lower than previously guided due to delays in receivables [45][46] Question: CapEx needs and cash flow - CapEx needs are planned and budgeted, with no unexpected expenses anticipated [60][62] Question: Opportunities in lottery business - The company is excited about the launch of a new cloud-based lottery system and sees significant growth potential in the lottery segment [64][68]

Core Insights - Inspired Entertainment, Inc. reported strong financial results for Q4 2024, with total revenue of $83.0 million, a 2% increase year-over-year, primarily driven by a 45% growth in the Interactive segment [7][11] - The company achieved a net income of $68.0 million for Q4 2024, compared to a net loss of $1.7 million in Q4 2023, indicating a significant turnaround [7][11] - Adjusted EBITDA for Q4 2024 was $30.9 million, up 22% from the previous year, with the Interactive segment's Adjusted EBITDA growing by 105% year-over-year [7][11] Financial Performance - The Interactive segment saw a revenue increase of 45% year-over-year, reaching $11.6 million, while the Gaming segment's revenue was $38.8 million, a slight decrease of 1% [9][11] - The Leisure segment reported a 7% revenue increase to $22.5 million, driven by Vantage deployments and growth in bingo and holiday park businesses [5][11] - The Virtual Sports segment faced challenges, with revenue declining by 22% to $10.1 million, but the company is optimistic about future growth through strategic measures [4][11] Operational Highlights - The company successfully launched the MGM Bonus City game with BetMGM in Michigan and the Hybrid Dealer Roulette game in Canada, indicating progress in its Hybrid Dealer rollout strategy [2][4] - A partnership with William Hill is advancing, with the installation of 5,000 new Vantage cabinets expected to drive further growth [3][11] - The company is focusing on expanding its digital businesses and optimizing land-based operations, with a commitment to investing in new market opportunities [6][11] Segment Performance - For the full year 2024, the Interactive segment's revenue increased by 41% to $39.3 million, while the Gaming segment's revenue decreased by 1% to $110.6 million [11] - The Virtual Sports segment's full-year revenue declined by 19% to $45.4 million, but the company remains confident in its long-term potential [10][11] - The Leisure segment's full-year revenue grew by 6% to $101.8 million, reflecting steady growth across its various businesses [11] Strategic Initiatives - The company is implementing strategic measures to streamline its Virtual Sports segment and unify product and platform teams under cohesive leadership [4][11] - Inspired Entertainment is expanding its mobile and slot games catalog in Brazil, indicating a focus on new market opportunities [8][11] - The company has extended its partnership with Aristocrat Interactive to provide V-Lottery Virtual Sports games to the Virginia Lottery, enhancing its product offerings [10][11]

NEW YORK, March 14, 2025 (GLOBE NEWSWIRE) -- Inspired Entertainment, Inc. (“Inspired” or the “Company”) (NASDAQ: INSE), a leading B2B provider of gaming content, technology, hardware, and services, today announced the extension of its long-standing partnership with Welcome Break, one of the UK’s leading motorway service area operators, running 60 service areas and 31 hotels across the UK. Under this new agreement, Inspired will serve as the sole supplier of gaming machines to Welcome Break. The agreement in ...

Financial Results - Inspired Entertainment, Inc. is set to release its fourth-quarter financial results on March 17, with expected earnings of 15 cents per share, a decrease from 17 cents per share in the previous year [1] - The projected quarterly revenue is $79.19 million, down from $81.2 million a year earlier [1] Partnership Expansion - On March 10, Inspired Entertainment announced an expansion of its partnership with Rush Street Interactive, Inc. [2] - Following the announcement, Inspired Entertainment shares fell by 6.4%, closing at $8.03 [2] Analyst Ratings - JMP Securities analyst David Scharf has a Market Outperform rating with a price target of $14, with an accuracy rate of 66% [3] - B. Riley Securities analyst David Bain reinstated a Buy rating with a price target of $21, achieving an accuracy rate of 65% [3] - Truist Securities analyst Barry Jonas maintained a Buy rating but reduced the price target from $21 to $19, also with an accuracy rate of 65% [3]

Core Insights - Inspired Entertainment, Inc. has expanded its partnership with Rush Street Interactive, Inc. to introduce iGaming content to new markets including Mexico, Colombia, Peru, and Delaware, building on previous successes in New Jersey, Michigan, and Pennsylvania [1][2][3] Company Overview - Inspired Entertainment is a leading B2B provider of gaming content, technology, hardware, and services, operating in approximately 35 jurisdictions worldwide [4] - The company supplies gaming systems and associated terminals for around 50,000 gaming machines and offers virtual sports products through more than 32,000 retail venues [4] - Inspired's digital games are available on over 170 websites, and it has a total installed base of more than 16,000 terminals for amusement entertainment solutions [4] Partnership Details - The iGaming content will be launched through RSI's RushBet platform in Mexico, Colombia, and Peru, and the BetRivers platform in Delaware [2] - Both companies express optimism about the partnership, highlighting the potential for success in the expanding gaming landscape [3]

Core Insights - Inspired Entertainment, Inc. has announced a partnership with Altenar to integrate its Virtual Sports products into Altenar's sportsbook platform, marking the first time this content will be available to Altenar's customers [1][3] - Altenar is expanding its presence in South America, including countries like Peru and Brazil, and is known for providing a range of services from software-only solutions to fully managed sportsbooks [2][6] Company Overview - Inspired Entertainment offers a diverse portfolio of gaming content, technology, hardware, and services for regulated gaming and betting operators across various channels globally, operating in approximately 35 jurisdictions [5] - The company supplies gaming systems for around 50,000 gaming machines and virtual sports products through over 32,000 retail venues and various online platforms [5] - Inspired's Virtual Sports products are popular worldwide, available through more than 40,000 retail channels and 100+ websites in 35 countries [4] Partnership Details - The partnership aims to enhance Altenar's sportsbook services by integrating Inspired's award-winning Virtual Sports technology, which is expected to open new revenue streams for operators [3][4] - Altenar's Director of Operations expressed excitement about the collaboration, highlighting the versatility of their platform and the enhancement of their sportsbook offerings with Inspired's technology [4]

Core Viewpoint - Inspired Entertainment, Inc. will report its financial results for Q4 and the fiscal year ended December 31, 2024, on March 17, 2025, before market opening, followed by a conference call to discuss results and business trends [1]. Group 1: Financial Reporting - The financial results will be announced on March 17, 2025, before the market opens [1]. - A conference call and webcast will be held at 8:30 a.m. ET / 12:30 p.m. GMT to discuss the results [1]. Group 2: Company Overview - Inspired Entertainment is a leading B2B provider of gaming content, technology, hardware, and services [1]. - The company operates in approximately 35 jurisdictions worldwide, supplying gaming systems and content for around 50,000 gaming machines [4]. - Inspired offers a diverse portfolio that includes gaming, Virtual Sports, interactive products, and leisure solutions, appealing to a wide variety of players [4].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [3] Group 2: Case Study - Inspired Entertainment (INSE) - Inspired Entertainment (INSE) has shown a four-week price change of 16.6%, indicating strong investor interest [4] - INSE has gained 2% over the past 12 weeks and has a beta of 1.4, suggesting it moves 40% more than the market in either direction [5] - The stock has a Momentum Score of B, indicating a favorable time to invest [6] - INSE has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [7] - The stock is trading at a Price-to-Sales ratio of 0.92, suggesting it is undervalued at 92 cents for each dollar of sales [7] Group 3: Additional Opportunities - Besides INSE, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Core Insights - Inspired Entertainment, Inc. has announced an early extension of its partnership with Moto Hospitality for an additional five years, marking a significant milestone in their collaboration [1][2] - The extension will see Inspired enhance Moto's offerings by introducing the Vantage B3 terminal, which will replace the existing Flex cabinets, aimed at fostering growth and improving service delivery [2][3] Company Overview - Inspired Entertainment provides a diverse portfolio of gaming content, technology, hardware, and services for regulated gaming, betting, lottery, social, and leisure operators globally [4] - The company operates in approximately 35 jurisdictions, supplying gaming systems and associated terminals for around 50,000 gaming machines, virtual sports products through over 32,000 retail venues, and digital games for more than 170 websites [4]