Inspired Reports First Quarter 2025 Results

Core Insights - Inspired Entertainment, Inc. reported a strong start to 2025, with significant growth in its Interactive segment, which saw a revenue increase of 49% year-over-year, driven by robust performance in the UK and North America [2][9] - The company achieved a total revenue of $60.4 million for the first quarter of 2025, a decrease of 3% compared to $62.3 million in the same period last year [9][11] - Adjusted EBITDA for the first quarter was $18.4 million, reflecting a 19% increase from the previous year, with a notable 75% growth in Interactive Adjusted EBITDA [9][11] Financial Performance - Total revenue for the Gaming segment was $21.7 million, down 6% from $23.2 million in Q1 2024 [11] - The Virtual Sports segment reported revenue of $8.7 million, a decrease of 30% from $12.4 million year-over-year, impacted by regulatory changes in Brazil [11][4] - The Leisure segment generated $17.9 million in revenue, down 4% from $18.6 million in the previous year, attributed to seasonal factors [11][5] Segment Highlights - The Interactive segment's revenue reached $12.1 million, up 49% from $8.1 million in Q1 2024, with an Adjusted EBITDA margin expanding to 64% [2][11] - The Gaming segment's Adjusted EBITDA increased by 43% to $9.3 million, supported by new terminal deployments in Greece and the UK [3][11] - The Virtual Sports segment's Adjusted EBITDA was $6.3 million, down 39% from $10.4 million, reflecting the challenges faced in the Brazilian market [11][4] Debt and Financing - The company entered into a commitment letter for £287.8 million in private credit facilities to refinance existing debt, which includes a new £17.8 million revolving credit facility and £270 million of senior secured term debt [6] - The refinancing is expected to close in early June 2025, with the new facilities bearing a SONIA-based floating interest rate [6] Strategic Initiatives - Inspired is focused on leveraging its diversified business model to drive growth in digital operations and enhance profitability in land-based segments [7] - The company is optimistic about the progress in its Hybrid Dealer rollout strategy and new partnerships, including a licensing agreement with the National Hockey League [2][4]