Inspired(US:INSE)2022-03-11 16:43Financial Data and Key Metrics Changes - The company ended the year with approximately $48 million in cash and $75 million in liquidity, including an undrawn revolver, with net debt to EBITDA below 3 on a stabilized basis [10][11] - Every measure of revenue and profitability reached record levels, indicating strong financial performance [10] Business Line Data and Key Metrics Changes - The Interactive business experienced a strong fourth quarter with 36% year-over-year revenue growth and over 72% growth throughout 2021 [18] - The Virtual Sports business reported a Q4 revenue growth of 26%, with online growth continuing and land-based operations returning to pre-COVID levels [21] - The Leisure segment saw a revenue increase of 183% compared to the prior year Q4, driven by reduced COVID restrictions and increased traffic [24] Market Data and Key Metrics Changes - North America showed strong growth, with the company launching iGaming in Connecticut and preparing for launches in Ontario and Pennsylvania [9][18] - The company is currently serving approximately 70% of the markets in New Jersey and Michigan, with plans to expand further [19] Company Strategy and Development Direction - The company aims to grow its digital businesses, particularly iGaming and Virtual Sports, which are expected to contribute significantly to overall EBITDA [8][17] - The acquisition of Sportech Lottery is seen as a critical piece in the company's strategic mosaic, enhancing its iLottery capabilities [11][12] - The company is focusing on leveraging its existing content portfolio and creating new content to drive growth [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to navigate challenges posed by macroeconomic issues and supply chain challenges [16] - The company anticipates significant opportunities in the Caribbean and Latin America, particularly through the Dominican Republic [12] Other Important Information - The company transitioned to a content and platform provider in the Italian market, which is expected to benefit its P&L [28] - The company plans to file its 10K by March 31, within the automatic extension period [14] Q&A Session Summary Question: Any change in player habits due to geopolitical macroenvironment? - Management reported no significant changes in player habits in European markets or the Illinois route market, indicating robust performance [33] Question: Strategic opportunity of Sportech with Cloudtech? - Management clarified that the iLottery platform could potentially double the take rate compared to just providing content, with a focus on international markets initially [34][40] Question: What is the sweet spot for new contracts in the lottery space? - Management indicated that every lottery globally is a target market for iLottery content, with significant growth potential expected [45][46] Question: Any updates on the UK gaming regulatory review? - Management noted that the white paper is expected in May, with no anticipated changes from previous discussions [49] Question: Comments on the Interactive segment's sequential performance? - Management explained that a dip in November was due to regulatory changes, but performance in October and December was better, indicating a positive outlook [54] Question: Features of the new Vantage hub cabinet? - Management highlighted improvements in hardware and the omnichannel strategy, allowing for better cross-pollination of content across different gaming venues [55][56] Question: Are all major content aggregator platforms integrated? - Management confirmed integration with major platforms, emphasizing a preference for direct integrations with customers [68][74]