Inspired Reports Third Quarter 2024 Results

Core Insights - Inspired Entertainment, Inc. reported a third quarter revenue of $78.0 million, a 4% increase year-over-year, primarily driven by record Interactive revenue, which grew 40% [1][9] - The company achieved a net income of$ 3.4 million and an adjusted EBITDA of $30.1 million, reflecting a 13% increase from the previous year [1][9] - James Richardson has been appointed as the new Chief Financial Officer, effective January 1, 2025 [1][6] Financial Performance - Total revenue for the Gaming segment (excluding low margin hardware sales) was$ 23.3 million, up 4% from $22.4 million in 2023 [9] - Virtual Sports revenue decreased by 16% to$ 11.2 million, while Interactive revenue surged to $10.2 million, marking a 40% increase [9] - Leisure segment revenue grew by 5% to$ 33.3 million, with an EBITDA margin improvement to 30.6% [5][9] Segment Highlights - The Interactive segment's EBITDA increased by 47% year-over-year, with an EBITDA margin of 67.6%, showcasing strong growth in key markets such as the UK, North America, and mainland Europe [2][9] - The Gaming segment saw a 29% increase in EBITDA, attributed to an improved revenue mix, despite modest revenue growth [3][9] - Virtual Sports maintained high margins of nearly 79%, with ongoing investments in strategic growth initiatives, particularly in Brazil [4][9] Strategic Developments - The company successfully launched the MGM Bonus City game with BetMGM in Michigan and is advancing its Hybrid Dealer Roulette game in Canada with Loto-Québec [2][8] - A strategic partnership with FanDuel was announced to integrate Inspired's Hybrid Dealer suite and develop proprietary content [2][8] - A licensing agreement with the National Hockey League was established to develop interactive Virtual Sports games featuring NHL branding [7][8] Future Outlook - The company remains focused on expanding its digital businesses, optimizing land-based operations, and investing in new market opportunities [7] - The strong performance in the Interactive segment and improving profitability in Gaming provide confidence in sustainable growth and shareholder value creation [7]