Inspired(INSE)2022-08-10 19:46Financial Data and Key Metrics Changes - Revenue grew 72% year-over-year to just over 7.5 million, equating to 1.94 in the prior year [30] Business Line Data and Key Metrics Changes - Virtual Sports revenue grew 90% year-over-year in functional currency, driven by strong performance in both online and retail segments [14][26] - Interactive revenue increased by 12% over the prior year on a constant currency basis, with growth expected from new customer integrations [17] - Leisure segment revenue grew 157% in functional currency, benefiting from fully opened operations compared to the previous year [25] Market Data and Key Metrics Changes - North America is now the second largest market for the company’s iGaming business, showing significant growth potential [18] - The company launched its first iLottery title with Loto Quebec, which has become a top performer in their portfolio [19] Company Strategy and Development Direction - The company is focusing on expanding its digital businesses, particularly in Virtual Sports and iLottery, to drive higher margin contributions [13][19] - Management is optimistic about the potential for growth in existing businesses while remaining cautious about capital allocation for M&A opportunities [42][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate potential economic downturns, citing strong operating margins and a solid contract portfolio [11] - The outlook for the company remains positive, with expectations of continued growth driven by product enhancements and market expansions [85] Other Important Information - The company repurchased approximately 734,000 shares at an average price of 25 million repurchase program [6][31] - The company has launched new products and secured contracts with key customers, indicating strong demand and market positioning [20][21] Q&A Session Summary Question: Potential upside from new contracts in the UK for gaming and leisure - Management indicated that the most significant upside is from Greene King, with a 6% increase in footprint expected [36][37] Question: Impact of player protection initiatives on interactive business - Management noted that while some operators are preemptively adjusting to new regulations, the company has seen growth, suggesting it is gaining market share [39][40] Question: Capital allocation priorities and M&A opportunities - Management is open to M&A if it aligns strategically, but emphasizes the importance of driving growth in existing businesses first [42][46] Question: Details on the William Hill agreement and Vantage cabinets - Management confirmed a trial of 400 terminals with William Hill, with positive performance expected to lead to further agreements [50][51] Question: iLottery opportunities and future product releases - Currently, only one iLottery title is live with Loto Quebec, with plans for additional titles in the near future [73][74] Question: Growth in virtual sports and sustainability of performance - Management attributed growth to a combination of new products, geographic expansion, and increased marketing efforts [60][61] Question: Leisure segment performance amid travel rebound - Management noted that while travel is increasing, domestic leisure activities are also benefiting the business, particularly in the pub segment [63][66] Question: Supply chain issues and inventory levels - Management acknowledged elevated inventory levels but expects to normalize by year-end, with no significant impact on sales anticipated [78][79]