Inspired Reports Third Quarter 2024 Results
Inspired Entertainment (NASDAQ: INSE) reported Q3 2024 financial results with total revenue of $78.0 million, driven by record Interactive revenue growth of 40% year-over-year. The company achieved net income of $3.4 million and Adjusted EBITDA of $30.1 million, up 13% from 2023. Interactive segment showed strong performance with EBITDA increasing 47% and margin expanding to 67.6%. Gaming segment EBITDA rose 29% year-over-year, while Leisure segment delivered 5% revenue growth. The company announced strategic partnerships, including agreements with NHL, Loto-Québec, and FanDuel, and appointed James Richardson as new CFO effective January 2025.
Inspired Entertainment (NASDAQ: INSE) ha riportato i risultati finanziari del terzo trimestre del 2024, con un fatturato totale di $78,0 milioni, sostenuto da una crescita record del fatturato Interattivo del 40% su base annua. L'azienda ha registrato un reddito netto di $3,4 milioni e un EBITDA Adjusted di $30,1 milioni, in aumento del 13% rispetto al 2023. Il segmento Interattivo ha mostrato prestazioni solide, con un EBITDA in crescita del 47% e un margine che è salito al 67,6%. L'EBITDA del segmento Gaming è aumentato del 29% su base annua, mentre il segmento Tempo Libero ha registrato una crescita del fatturato del 5%. L'azienda ha annunciato partnership strategiche, tra cui accordi con NHL, Loto-Québec e FanDuel, e ha nominato James Richardson come nuovo CFO a partire da gennaio 2025.
Inspired Entertainment (NASDAQ: INSE) reportó los resultados financieros del tercer trimestre de 2024, con ingresos totales de $78,0 millones, impulsados por un crecimiento récord en ingresos Interactivos del 40% en comparación con el año anterior. La compañía alcanzó un ingreso neto de $3,4 millones y un EBITDA Ajustado de $30,1 millones, un aumento del 13% respecto a 2023. El segmento Interactivo mostró un rendimiento sólido, con un EBITDA que aumentó un 47% y un margen que se expandió al 67,6%. El EBITDA del segmento de Juegos creció un 29% interanual, mientras que el segmento de Ocio presentó un crecimiento de ingresos del 5%. La empresa anunció alianzas estratégicas, incluyendo acuerdos con NHL, Loto-Québec y FanDuel, y nombró a James Richardson como nuevo CFO a partir de enero de 2025.
인스파이어드 엔터테인먼트 (NASDAQ: INSE)는 2024년 3분기 재무 결과를 보고했으며, 총 수익은 $78.0 백만으로, 전년 대비 40%의 기록적인 인터랙티브 수익 성장에 의해 견인되었습니다. 회사는 $3.4 백만의 순이익과 $30.1 백만의 조정 EBITDA를 달성했으며, 이는 2023년 대비 13% 증가한 수치입니다. 인터랙티브 부문은 EBITDA가 47% 증가하고, 마진이 67.6%로 확대되는 등 강력한 실적을 보였습니다. 게임 부문의 EBITDA는 전년 대비 29% 증가했으며, 레저 부문은 5%의 수익 성장을 기록했습니다. 회사는 NHL, 로토-퀘벡, 팬듀얼과의 계약을 포함한 전략적 파트너십을 발표하고, 제임스 리처드슨을 2025년 1월부터 새로운 CFO로 임명했습니다.
Inspired Entertainment (NASDAQ: INSE) a rapporté les résultats financiers du troisième trimestre 2024, avec un chiffre d'affaires total de 78,0 millions de dollars, soutenu par une croissance record des revenus interactifs de 40% d'une année sur l'autre. La société a réalisé un revenu net de 3,4 millions de dollars et un EBITDA ajusté de 30,1 millions de dollars, en hausse de 13% par rapport à 2023. Le segment interactif a montré de solides performances avec un EBITDA en hausse de 47% et une marge qui s'est élargie à 67,6%. L'EBITDA du segment des jeux a augmenté de 29% par rapport à l'année précédente, tandis que le segment des loisirs a enregistré une croissance de chiffre d'affaires de 5%. L'entreprise a annoncé des partenariats stratégiques, y compris des accords avec la NHL, Loto-Québec et FanDuel, et a nommé James Richardson comme nouveau directeur financier à partir de janvier 2025.
Inspired Entertainment (NASDAQ: INSE) hat die Finanzzahlen für das dritte Quartal 2024 veröffentlicht, mit einem Gesamtumsatz von $78,0 Millionen, der durch ein rekordverdächtiges Wachstum der interaktiven Einnahmen von 40% im Jahresvergleich vorangetrieben wurde. Das Unternehmen erzielte ein Nettoeinkommen von $3,4 Millionen und ein bereinigtes EBITDA von $30,1 Millionen, ein Anstieg von 13% gegenüber 2023. Der interaktive Bereich zeigte eine starke Leistung, wobei das EBITDA um 47% und die Marge auf 67,6% anstieg. Das EBITDA im Gaming-Bereich stieg im Vergleich zum Vorjahr um 29%, während der Freizeitsektor ein Umsatzwachstum von 5% erzielte. Das Unternehmen gab strategische Partnerschaften bekannt, darunter Vereinbarungen mit NHL, Loto-Québec und FanDuel, und ernannte James Richardson ab Januar 2025 zum neuen CFO.
- Record Interactive revenue growth of 40% year-over-year
- Adjusted EBITDA increased 13% to $30.1 million
- Interactive segment EBITDA margin expanded to 67.6%
- Gaming segment EBITDA increased 29% year-over-year
- Leisure segment achieved 5% revenue growth with improved EBITDA margin of 30.6%
- Virtual Sports revenue declined 16% year-over-year
- Total company revenue decreased 20% including low margin gaming hardware sales
Insights
Strong Q3 2024 results showcase significant growth in key segments.
Notable strategic developments include the William Hill partnership for 5,000 Vantage cabinets deployment, NHL licensing agreement and Loto-Québec Hybrid Dealer rollout. The Gaming segment showed improved profitability with
The diversified business model demonstrates resilience, with Interactive and Gaming segments offsetting Virtual Sports headwinds. Strong operational leverage and strategic partnerships position the company well for 2025 growth.
The strategic pivot towards digital transformation is paying off significantly. The Hybrid Dealer product suite expansion through partnerships with BetMGM, FanDuel and Loto-Québec represents a major breakthrough in the North American market. The NHL licensing agreement adds to an impressive portfolio including NFL and NBA, strengthening the company's competitive position in sports-themed content.
The Mecca Bingo deal and William Hill's Vantage cabinet deployment indicate strong demand for next-gen gaming hardware. While Virtual Sports faced some challenges, the
- Third Quarter Revenue of
$78.0 million , driven primarily by record Interactive revenue, up40% year-over-year - Third Quarter Net Income of
$3.4 million - Third Quarter Adjusted EBITDA of
$30.1 million , up13% from 2023 and driven by record Interactive Adjusted EBITDA, up47% year-over-year - Appoints James Richardson as new Chief Financial Officer, effective January 1st, 2025
NEW YORK, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Inspired Entertainment, Inc. (“Inspired” or the “Company”) (NASDAQ: INSE), a leading B2B provider of gaming content, technology, hardware and services, today reported financial results for the three-month period ended September 30, 2024.
“Our third quarter results demonstrate the resilience of our diversified business model and our ability to successfully execute across our business segments,” said Lorne Weil, Executive Chairman of Inspired. “Interactive continues to be a standout performer with revenue growing
“In our Gaming segment, we’re seeing positive momentum from our operational initiatives, with EBITDA increasing
“While Virtual Sports faced continued headwinds from a key customer, we’re seeing encouraging trends in the broader business with high single-digit revenue growth in the rest of the customer base driven by online performance. Despite the near-term challenges, we remain confident in the long-term growth trajectory of this high-margin business. The business continues to generate industry-leading margins of nearly
“In our Leisure segment, we delivered
“Lastly, we are thrilled to welcome James Richardson to the Inspired Entertainment team. James’s extensive background in financial management and his proven track record of driving growth and operational excellence make him an ideal fit for our company as we continue to execute our strategic initiatives and deliver value to our shareholders.
“Looking ahead, we remain focused on executing our strategic priorities: expanding our digital businesses, optimizing our land-based operations, and investing in new market opportunities. The strong performance of Interactive, improving profitability in Gaming, and our ongoing investments in Virtual Sports content and new markets give us confidence in our ability to drive sustainable growth and shareholder value creation.”
Recent Business Highlights
- Subsequent to quarter-end, announced a licensing agreement with the National Hockey League (“NHL”) granting Inspired rights to develop interactive, fixed odds Virtual Sports games, featuring the NHL logo and NHL Club jerseys and names.
- Subsequent to quarter-end, announced revolutionary Hybrid Dealer Roulette game in Canada with Loto-Québec that is expected to be delivered in the fourth quarter of 2024.
- Subsequent to quarter-end, announced a long-term extension of its Virtual Sports partnership with OPAP, Greece’s leading gaming company, and will upgrade 4,000 Video Lottery Terminals (“VLTs”).
- Subsequent to quarter-end, announced a strategic partnership with FanDuel to integrate Inspired’s innovative Hybrid Dealer suite of content and develop a bespoke game tailored specifically for FanDuel’s audience.
| Summary of Third Quarter 2024 Segment Financial Results (unaudited) | ||||||||||||||||||
| Three Months Ended September 30, | Reported Variance | Currency Movement 20242 | Functional Currency Variance | |||||||||||||||
| (In $ millions) | 2024 | 2023 | % | $ | % | |||||||||||||
| Total Revenue | ||||||||||||||||||
| Gaming (excl. Low Margin Hardware Sales) | $ | 23.3 | $ | 22.4 | 4 | % | $ | 0.6 | 2 | % | ||||||||
| Virtual Sports | 11.2 | 13.4 | (16 | %) | 0.3 | (19 | %) | |||||||||||
| Interactive | 10.2 | 7.3 | 40 | % | 0.2 | 37 | % | |||||||||||
| Leisure | 33.3 | 31.7 | 5 | % | 0.9 | 2 | % | |||||||||||
| Total Company Revenue (excl. Low Margin Gaming Hardware Sales) | $ | 78.0 | $ | 74.8 | 4 | % | $ | 2.0 | 2 | % | ||||||||
| Low Margin Gaming Hardware Sales | - | 22.7 | (100 | %) | - | (100 | %) | |||||||||||
| Total Company Revenue (incl. Low Margin Gaming Hardware Sales) | $ | 78.0 | $ | 97.5 | (20 | %) | $ | 2.0 | (22 | %) | ||||||||
| Net operating income | 11.9 | 12.2 | (2 | %) | 0.1 | (3 | %) | |||||||||||
| Net income | 3.4 | 3.4 | 0 | % | (0.6 | ) | 18 | % | ||||||||||
| Net income per basic share | $ | 0.12 | $ | 0.12 | (1 | %) | NM3 | 22 | % | |||||||||
| Net income per diluted share | $ | 0.12 | $ | 0.12 | (1 | %) | NM3 | 23 | % | |||||||||
| Non-GAAP Financial Measures | ||||||||||||||||||
| Adjusted EBITDA1 | ||||||||||||||||||
| Gaming | $ | 10.7 | $ | 8.3 | 29 | % | 0.8 | 19 | % | |||||||||
| Virtual Sports | 8.8 | 11.7 | (25 | %) | 0.2 | (26 | %) | |||||||||||
| Interactive | 6.9 | 4.7 | 47 | % | 0.1 | 45 | % | |||||||||||
| Leisure | 10.2 | 8.7 | 17 | % | 0.0 | 18 | % | |||||||||||
| Corporate | (6.5 | ) | (6.7 | ) | 3 | % | (0.1 | ) | 5 | % | ||||||||
| Total Company Adjusted EBITDA1 | $ | 30.1 | $ | 26.7 | 13 | % | $ | 1.0 | 9 | % | ||||||||
| Adjusted EBITDA Margin1 | 39 | % | 27 | % | ||||||||||||||
| Adjusted EBITDA Margin (Excl. Low Margin Gaming Hardware Sales | 39 | % | 36 | % | ||||||||||||||
| Adjusted net income1 | $ | 6.0 | $ | 4.9 | 22 | % | 0.2 | 18 | % | |||||||||
| Adjusted net income per diluted share | $ | 0.21 | $ | 0.17 | 24 | % | NM3 | 23 | % | |||||||||
| 1 Reconciliation to US GAAP shown below. | ||||||||||||||||||
| 2 Currency movement calculated by translating 2024 and 2023 performances at 2023 exchange rates. | ||||||||||||||||||
| 3 Percentage/dollar change is not meaningful. | ||||||||||||||||||
Non-GAAP Financial Measures
We use non-GAAP financial measures, including Adjusted EBITDA, to analyze our operating performance. We use these financial measures to manage our business on a day-to-day basis. We believe that these measures are also commonly used in our industry to measure performance. For these reasons, we believe that these non-GAAP financial measures provide expanded insight into our business, in addition to standard U.S. GAAP financial measures. There are no uniform rules for defining and using non-GAAP financial measures, and as a result the measures we use may not be comparable to measures used by other companies, even if they have similar labels. The presentation of non-GAAP financial information should not be considered in isolation from, as a substitute for, or superior to, financial information prepared and presented in accordance with U.S. GAAP. You should consider our non-GAAP financial measures in conjunction with our U.S. GAAP financial statements.
We define our non-GAAP financial measures as follows:
EBITDA is defined as net income (loss) excluding depreciation and amortization, interest expense, interest income and income tax expense.
Adjusted EBITDA is defined as net income (loss) excluding depreciation and amortization, interest expense, interest income and income tax expense, and other additional exclusions and adjustments (see Adjusted EBITDA reconciliation table). Such additional excluded amounts include stock-based compensation U.S. GAAP charges where the associated liability is expected to be settled in stock, and changes in the value of earnout liabilities and income and expenditure in relation to legacy portions of the business (being those portions where trading no longer occurs) including closed defined benefit pension schemes. Additional adjustments are made for items considered outside the normal course of business, including (1) restructuring costs, which include charges attributable to employee severance, management changes, restructuring, dual running costs, costs related to facility closures and integration costs, (2) merger and acquisition costs and (3) gains or losses not in the ordinary course of business.
We believe Adjusted EBITDA, when considered along with other performance measures, is a particularly useful performance measure, because it focuses on certain operating drivers of the business, including sales growth, operating costs, selling and administrative expense and other operating income and expense. We believe Adjusted EBITDA can provide a more complete understanding of our operating results and the trends to which we are subject, and an enhanced overall understanding of our financial performance and prospects for the future. Adjusted EBITDA is not intended to be a measure of liquidity or cash flows from operations or a measure comparable to net income or loss, because it does not take into account certain aspects of our operating performance (for example, it excludes non-recurring gains and losses which are not deemed to be a normal part of underlying business activities). Our use of Adjusted EBITDA may not be comparable to the use by other companies of similarly termed measures. Management compensates for these limitations by using Adjusted EBITDA as only one of several measures for evaluating our operating performance. In addition, capital expenditures, which affect depreciation and amortization, interest expense, and income tax benefit (expense), are evaluated separately by management.
Adjusted Net Income is defined as net income (loss) excluding the effects of certain exclusions and adjustments. Such excluded amounts include income and expenditure in relation to legacy portions of the business (being those portions where trading no longer occurs) including closed defined benefit pension schemes. Additional adjustments are made for items considered outside the normal course of business, including (1) restructuring costs, which include charges attributable to employee severance, management changes, restructuring, dual running costs, costs related to facility closures and integration costs, (2) merger and acquisition costs and (3) gains or losses not in the ordinary course of business. These items have been adjusted to reflect the tax impact from excluding them from net income (loss).
Adjusted Net Income per diluted share is computed by dividing the Adjusted Net Income by the weighted-average number of common shares outstanding during the period, including the effects of any potentially dilutive securities, including RSUs, using the treasury stock method, and convertible debt or convertible preferred stock, using the if-converted method, unless the inclusion would be anti-dilutive.
Functional Currency at Constant rate. Currency impacts shown have been calculated as the current-period average GBP:USD rate less the equivalent average rate in the prior year quarter, multiplied by the current period amount in our functional currency (GBP). The remaining difference, referred to as functional currency at constant rate, is calculated as the difference in our functional currency, multiplied by the prior year quarter average GBP: USD rate, as a proxy for functional currency at constant rate movement.
Currency Movement represents the difference between the results in our reporting currency (USD) and the results on a functional currency at constant rate basis.
Reconciliations from net income (loss), as shown in our Consolidated Statements of Operations and Comprehensive Loss, to Adjusted EBITDA are shown below.
Conference Call and Webcast
Inspired management will host a conference call and simultaneous webcast at 8:00 a.m. ET / 1:00 p.m. UK on Friday, November 8, 2024 to discuss the financial results and general business trends.
Telephone: The dial-in number to access the call live is 1-800-715-9871 (US) or 1-646-307-1963 (International). Participants should ask to be joined into the Inspired Entertainment call.
Webcast: A live audio-only webcast of the call can be accessed through the “Events and Presentations” page of the Company’s website at www.inseinc.com under the Investors link. Please follow the registration prompts.
Replay: A replay of the webcast will be available on the Company’s website at www.inseinc.com.
About Inspired Entertainment, Inc.
Inspired offers an expanding portfolio of content, technology, hardware and services for regulated gaming, betting, lottery, social and leisure operators across retail and mobile channels around the world. The Company’s gaming, virtual sports, interactive and leisure products appeal to a wide variety of players, creating new opportunities for operators to grow their revenue. The Company operates in approximately 35 jurisdictions worldwide, supplying gaming systems with associated terminals and content for approximately 50,000 gaming machines located in betting shops, pubs, gaming halls and other route operations; virtual sports products through more than 32,000 retail venues and various online websites; interactive games for 170+ websites; and a variety of amusement entertainment solutions with a total installed base of more than 16,000 terminals. Additional information can be found at www.inseinc.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our ability to bring certain of our products to customers in the various markets in which we operate and execute on our strategic plan, statements regarding expectations with respect to potential new customers and statements regarding our anticipated financial performance. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “continue,” “expect,” “estimate,” “plan,” “will,” “would” and “project” and other similar expressions that indicate future events or trends or are not statements of historical matters. These statements are based on Inspired management’s current expectations and beliefs, as well as a number of assumptions concerning future events.
Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of Inspired’s control and all of which could cause actual results to differ materially from the results discussed in the forward-looking statements. Accordingly, forward-looking statements should not be relied upon as representing Inspired’s views as of any subsequent date. You are advised to review carefully the “Risk Factors” section of Inspired’s annual report on Form 10-K for the fiscal year ended December 31, 2023, and subsequent quarterly reports on Form 10-Q, which are available, free of charge, on the U.S. Securities and Exchange Commission’s website at www.sec.gov. Inspired does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as required by law.
Contact:
For Investors
IR@inseinc.com
+1 (646) 277-1285
For Press and Sales
inspiredsales@inseinc.com
| INSPIRED ENTERTAINMENT, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (in millions, except share and per share data) (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue: | ||||||||||||||||
| Service | $ | 73.8 | $ | 70.7 | $ | 196.7 | $ | 195.7 | ||||||||
| Product sales | 4.2 | 26.8 | 20.0 | 46.1 | ||||||||||||
| Total revenue | 78.0 | 97.5 | 216.7 | 241.8 | ||||||||||||
| Cost of sales: | ||||||||||||||||
| Cost of service (1) | (20.7 | ) | (21.4 | ) | (55.6 | ) | (56.9 | ) | ||||||||
| Cost of product sales (1) | (2.7 | ) | (26.7 | ) | (13.0 | ) | (41.8 | ) | ||||||||
| Selling, general and administrative expenses | (31.4 | ) | (26.9 | ) | (96.4 | ) | (82.7 | ) | ||||||||
| Depreciation and amortization | (11.3 | ) | (10.3 | ) | (31.8 | ) | (29.8 | ) | ||||||||
| Net operating income | 11.9 | 12.2 | 19.9 | 30.6 | ||||||||||||
| Other expense | ||||||||||||||||
| Interest expense, net | (7.6 | ) | (6.9 | ) | (20.9 | ) | (20.5 | ) | ||||||||
| Other finance income | 0.1 | 0.1 | 0.3 | 0.3 | ||||||||||||
| Total other expense, net | (7.5 | ) | (6.8 | ) | (20.6 | ) | (20.2 | ) | ||||||||
| Net income (loss) before income taxes | 4.4 | 5.4 | (0.7 | ) | 10.4 | |||||||||||
| Income tax (expense) benefit | (1.0 | ) | (2.0 | ) | 0.4 | (2.8 | ) | |||||||||
| Net income (loss) | 3.4 | 3.4 | (0.3 | ) | 7.6 | |||||||||||
| Other comprehensive (loss)/income: | ||||||||||||||||
| Foreign currency translation (loss) gain | (6.3 | ) | 3.6 | (5.5 | ) | (2.0 | ) | |||||||||
| Reclassification of loss on hedging instrument to comprehensive income | — | — | — | 0.3 | ||||||||||||
| Actuarial gains on pension plan | 0.3 | 0.2 | 0.9 | 0.7 | ||||||||||||
| Other comprehensive (loss) income | (6.0 | ) | 3.8 | (4.6 | ) | (1.0 | ) | |||||||||
| Comprehensive (loss) income | $ | (2.6 | ) | $ | 7.2 | $ | (4.9 | ) | $ | 6.6 | ||||||
| Net income per common share – basic | $ | 0.12 | $ | 0.12 | $ | (0.01 | ) | $ | 0.27 | |||||||
| Net income per common share – diluted | $ | 0.12 | $ | 0.12 | $ | (0.01 | ) | $ | 0.26 | |||||||
| Weighted average number of shares outstanding during the period – basic | 28,496,801 | 28,104,365 | 28,524,762 | 28,088,901 | ||||||||||||
| Weighted average number of shares outstanding during the period – diluted | 29,188,787 | 29,105,267 | 28,524,762 | 29,149,285 | ||||||||||||
| Supplemental disclosure of stock-based compensation expense | ||||||||||||||||
| Stock-based compensation included in: | ||||||||||||||||
| Selling, general and administrative expenses | $ | (1.8 | ) | $ | (3.3 | ) | $ | (5.7 | ) | $ | (9.3 | ) | ||||
| (1) | Excluding depreciation and amortization |
| INSPIRED ENTERTAINMENT, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share data) | ||||||||
| September 30, 2024 | December 31, 2023 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Cash | $ | 35.7 | $ | 40.0 | ||||
| Restricted cash | 0.8 | — | ||||||
| Accounts receivable, net | 47.2 | 40.6 | ||||||
| Inventory | 31.6 | 32.3 | ||||||
| Prepaid expenses and other current assets | 50.1 | 39.6 | ||||||
| Total current assets | 165.4 | 152.5 | ||||||
| Property and equipment, net | 64.4 | 62.8 | ||||||
| Software development costs, net | 24.2 | 21.8 | ||||||
| Other acquired intangible assets subject to amortization, net | 17.2 | 13.4 | ||||||
| Goodwill | 61.9 | 58.8 | ||||||
| Operating lease right of use asset | 18.2 | 14.2 | ||||||
| Costs of obtaining and fulfilling customer contracts, net | 11.7 | 9.4 | ||||||
| Other assets | 25.6 | 8.0 | ||||||
| Total assets | $ | 388.6 | $ | 340.9 | ||||
| Liabilities and Stockholders’ Deficit | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued expenses | $ | 60.4 | $ | 60.8 | ||||
| Corporate tax and other current taxes payable | 7.0 | 6.3 | ||||||
| Deferred revenue, current | 5.6 | 5.6 | ||||||
| Operating lease liabilities | 5.3 | 4.7 | ||||||
| Current portion of long-term debt | 20.1 | 19.1 | ||||||
| Current portion of finance liabilities | 7.8 | 0.7 | ||||||
| Other current liabilities | 3.1 | 3.5 | ||||||
| Total current liabilities | 109.3 | 100.7 | ||||||
| Long-term debt | 312.4 | 295.6 | ||||||
| Finance lease liabilities, net of current portion | 16.6 | 1.6 | ||||||
| Deferred revenue, net of current portion | 12.0 | 7.1 | ||||||
| Operating lease liabilities | 13.4 | 9.8 | ||||||
| Other long-term liabilities | 3.2 | 4.1 | ||||||
| Total liabilities | 466.9 | 418.9 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ deficit | ||||||||
| Preferred stock; | — | — | ||||||
| Common stock; | — | — | ||||||
| Additional paid in capital | 390.7 | 386.1 | ||||||
| Accumulated other comprehensive income | 39.9 | 44.5 | ||||||
| Accumulated deficit | (508.9 | ) | (508.6 | ) | ||||
| Total stockholders’ deficit | (78.3 | ) | (78.0 | ) | ||||
| Total liabilities and stockholders’ deficit | $ | 388.6 | $ | 340.9 | ||||
| INSPIRED ENTERTAINMENT, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) | ||||||||
| Nine Months Ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net (loss) income | $ | (0.3 | ) | $ | 7.6 | |||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 31.8 | 29.8 | ||||||
| Amortization of right of use asset | 3.3 | 2.8 | ||||||
| Stock-based compensation expense | 5.7 | 9.3 | ||||||
| Reclassification of loss on hedging instrument to comprehensive income | — | 0.5 | ||||||
| Non-cash interest expense relating to senior debt | 0.7 | 1.0 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | (4.4 | ) | 11.7 | |||||
| Inventory | 2.3 | (9.4 | ) | |||||
| Prepaid expenses and other assets | (3.0 | ) | (5.0 | ) | ||||
| Corporate tax and other current taxes payable | (4.0 | ) | (9.6 | ) | ||||
| Accounts payable and accrued expenses | (7.9 | ) | 4.6 | |||||
| Deferred revenue and customer prepayment | 3.9 | 2.9 | ||||||
| Operating lease liabilities | (3.1 | ) | (2.8 | ) | ||||
| Other long-term liabilities | (0.2 | ) | (0.4 | ) | ||||
| Net cash provided by operating activities | 24.8 | 43.0 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (11.7 | ) | (20.1 | ) | ||||
| Acquisition of third-party company trade and assets | — | (0.6 | ) | |||||
| Purchases of capital software and internally developed costs | (9.2 | ) | (11.0 | ) | ||||
| Contract cost expense | (8.6 | ) | (7.7 | ) | ||||
| Net cash used in investing activities | (29.5 | ) | (39.4 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Repurchase of common stock | — | (1.6 | ) | |||||
| Repayments of finance leases | (0.4 | ) | (1.0 | ) | ||||
| Net cash used in financing activities | (0.4 | ) | (2.6 | ) | ||||
| Effect of exchange rate changes on cash | 1.6 | 0.4 | ||||||
| Net (decrease) increase in cash | (3.5 | ) | 1.4 | |||||
| Cash, beginning of period | 40.0 | 25.0 | ||||||
| Cash and restricted cash, end of period | $ | 36.5 | $ | 26.4 | ||||
| Components of cash and restricted cash | ||||||||
| Cash | 35.7 | 26.4 | ||||||
| Restricted cash | 0.8 | - | ||||||
| Total cash and restricted cash, end of period | $ | 36.5 | $ | 26.4 | ||||
| Supplemental cash flow disclosures | ||||||||
| Cash paid during the period for interest | $ | 12.8 | $ | 12.1 | ||||
| Cash paid during the period for income taxes | $ | 2.5 | $ | 4.8 | ||||
| Cash paid during the period for operating leases | $ | 7.2 | $ | 4.9 | ||||
| Supplemental disclosure of non-cash investing and financing activities | ||||||||
| Lease liabilities arising from obtaining right of use assets | $ | (6.4 | ) | $ | (0.4 | ) | ||
| Property and equipment acquired through finance lease | $ | 21.9 | $ | 1.2 | ||||
| Additional paid in capital from net settlement of RSUs | $ | (0.8 | ) | $ | (1.3 | ) | ||
| INSPIRED ENTERTAINMENT, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED EBITDA RECONCILIATION BY SEGMENT (in millions) (Unaudited) | ||||||||||||||||||||||||
| Three Months Ended September 30, 2024 | ||||||||||||||||||||||||
| Gaming | Virtual Sports | Interactive | Leisure | Corporate | Total | |||||||||||||||||||
| Net income (loss) | $ | 4.4 | $ | 7.4 | $ | 5.5 | $ | 6.9 | $ | (20.8 | ) | $ | 3.4 | |||||||||||
| Items Relating to Legacy Activities: | ||||||||||||||||||||||||
| Pension charges | — | — | — | — | 0.3 | 0.3 | ||||||||||||||||||
| Items outside the normal course of business: | ||||||||||||||||||||||||
| Costs of group restructure | 1.2 | — | — | — | 0.7 | 1.9 | ||||||||||||||||||
| Costs of group restatement | — | — | — | — | 2.9 | 2.9 | ||||||||||||||||||
| Stock-based compensation expense | 0.1 | 0.1 | 0.1 | 0.2 | 1.3 | 1.8 | ||||||||||||||||||
| Depreciation and amortization | 5.0 | 1.3 | 1.3 | 3.1 | 0.6 | 11.3 | ||||||||||||||||||
| Interest expense, net | — | — | — | — | 7.6 | 7.6 | ||||||||||||||||||
| Other finance income | — | — | — | — | (0.1 | ) | (0.1 | ) | ||||||||||||||||
| Income tax | — | — | — | — | 1.0 | 1.0 | ||||||||||||||||||
| Adjusted EBITDA | $ | 10.7 | $ | 8.8 | $ | 6.9 | $ | 10.2 | $ | (6.5 | ) | $ | 30.1 | |||||||||||
| Adjusted EBITDA | £ | 8.1 | £ | 6.8 | £ | 5.3 | £ | 7.9 | £ | (5.0 | ) | £ | 23.1 | |||||||||||
| Exchange rate - $ to £ | 1.30 | |||||||||||||||||||||||
Three Months Ended September 30, 2023 | ||||||||||||||||||||||||
| Gaming | Virtual Sports | Interactive | Leisure | Corporate | Total | |||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||
| Net income (loss) | $ | 2.8 | $ | 10.8 | $ | 3.7 | $ | 5.5 | $ | (19.4 | ) | $ | 3.4 | |||||||||||
| Items Relating to Discontinued Activities | ||||||||||||||||||||||||
| Pension charges | — | — | — | — | 0.2 | 0.2 | ||||||||||||||||||
| Items Relating to Discontinued Activities | ||||||||||||||||||||||||
| Costs of group restructure | — | — | — | — | 0.7 | 0.7 | ||||||||||||||||||
| Stock-based compensation expense | 0.4 | 0.2 | 0.1 | 0.2 | 2.4 | 3.3 | ||||||||||||||||||
| Depreciation and amortization | 5.1 | 0.7 | 0.9 | 3.0 | 0.6 | 10.3 | ||||||||||||||||||
| Interest expense, net | — | — | — | — | 6.9 | 6.9 | ||||||||||||||||||
| Other finance income | — | — | — | — | (0.1 | ) | (0.1 | ) | ||||||||||||||||
| Income tax | — | — | — | — | 2.0 | 2.0 | ||||||||||||||||||
| Adjusted EBITDA | $ | 8.3 | $ | 11.7 | $ | 4.7 | $ | 8.7 | $ | (6.7 | ) | $ | 26.7 | |||||||||||
| Adjusted EBITDA | £ | 6.8 | £ | 9.2 | £ | 3.7 | £ | 6.7 | £ | (5.3 | ) | £ | 21.1 | |||||||||||
| Exchange rate - $ to £ | 1.27 | |||||||||||||||||||||||
Nine Months Ended September 30, 2024 | ||||||||||||||||||||||||
| Gaming | Virtual Sports | Interactive | Leisure | Corporate | Total | |||||||||||||||||||
| Net income (loss) | $ | 13.6 | $ | 23.8 | $ | 13.4 | $ | 8.6 | $ | (59.7 | ) | $ | (0.3 | ) | ||||||||||
| Items Relating to Legacy Activities: | ||||||||||||||||||||||||
| Pension charges | — | — | — | — | 0.9 | 0.9 | ||||||||||||||||||
| Items outside the normal course of business: | ||||||||||||||||||||||||
| Costs of group restructure | 1.5 | — | — | — | 1.3 | 2.8 | ||||||||||||||||||
| Costs of group restatement | — | — | — | — | 10.7 | 10.7 | ||||||||||||||||||
| Stock-based compensation expense | 0.5 | 0.3 | 0.3 | 0.4 | 4.2 | 5.7 | ||||||||||||||||||
| Depreciation and amortization | 12.7 | 4.7 | 3.7 | 9.1 | 1.6 | 31.8 | ||||||||||||||||||
| Interest expense, net | — | — | — | — | 20.9 | 20.9 | ||||||||||||||||||
| Other finance income | — | — | — | — | (0.3 | ) | (0.3 | ) | ||||||||||||||||
| Income tax | — | — | — | — | (0.4 | ) | (0.4 | ) | ||||||||||||||||
| Adjusted EBITDA | $ | 28.3 | $ | 28.8 | $ | 17.4 | $ | 18.1 | $ | (20.8 | ) | $ | 71.8 | |||||||||||
| Adjusted EBITDA | £ | 21.7 | £ | 22.4 | £ | 13.4 | £ | 14.1 | £ | (15.6 | ) | £ | 56.0 | |||||||||||
| Exchange rate - $ to £ | 1.28 | |||||||||||||||||||||||
Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||
| Gaming | Virtual Sports | Interactive | Leisure | Corporate | Total | |||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||
| Net income (loss) | $ | 13.9 | $ | 34.6 | $ | 8.5 | $ | 6.3 | $ | (55.7 | ) | $ | 7.6 | |||||||||||
| Items Relating to Discontinued Activities | ||||||||||||||||||||||||
| Pension charges | — | — | — | — | 0.6 | 0.6 | ||||||||||||||||||
| Items outside the normal course of business: | ||||||||||||||||||||||||
| Costs of group restructure | — | — | — | — | 3.7 | 3.7 | ||||||||||||||||||
| Stock-based compensation expense | 1.1 | 0.6 | 0.4 | 0.7 | 6.5 | 9.3 | ||||||||||||||||||
| Depreciation and amortization | 14.2 | 2.3 | 2.5 | 9.1 | 1.7 | 29.8 | ||||||||||||||||||
| Interest expense, net | — | — | — | — | 20.5 | 20.5 | ||||||||||||||||||
| Other finance income | — | — | — | — | (0.3 | ) | (0.3 | ) | ||||||||||||||||
| Income tax | — | — | — | — | 2.8 | 2.8 | ||||||||||||||||||
| Adjusted EBITDA | $ | 29.2 | $ | 37.5 | $ | 11.4 | $ | 16.1 | $ | (20.2 | ) | $ | 74.0 | |||||||||||
| Adjusted EBITDA | £ | 23.7 | £ | 30.1 | £ | 9.1 | £ | 12.6 | £ | (16.1 | ) | £ | 59.4 | |||||||||||
| Exchange rate - $ to £ | 1.24 | |||||||||||||||||||||||
| ADJUSTED NET INCOME RECONCILIATION (in millions, except share data) (Unaudited) | |||||||||||||||
| For the Three-Month Period ended | For the Nine-Month Period ended | ||||||||||||||
| Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
| (In millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income (loss) | $ | 3.4 | $ | 3.4 | $ | (0.3 | ) | $ | 7.6 | ||||||
| Items Relating to Legacy Activities: | |||||||||||||||
| Pension charges | 0.3 | 0.2 | 0.9 | 0.6 | |||||||||||
| Items outside the normal course of business: | |||||||||||||||
| Cost of group restructure | 1.9 | 0.7 | 2.8 | 3.7 | |||||||||||
| Cost of group restatement | 2.9 | — | 10.7 | — | |||||||||||
| Stock-based Compensation related to group restructure | — | — | — | 0.7 | |||||||||||
| Upfront recognition of Stock-based Compensation expense | — | — | — | 0.4 | |||||||||||
| Effect of exchange rates on cash | (2.0 | ) | 1.0 | (1.6 | ) | (0.5 | ) | ||||||||
| Mark to market movement on currency deals | (0.4 | ) | (0.3 | ) | (0.5 | ) | (0.2 | ) | |||||||
| Other finance income | (0.1 | ) | (0.1 | ) | (0.3 | ) | (0.3 | ) | |||||||
| Tax Impact | — | — | 0.1 | — | |||||||||||
| Adjusted Net Income | $ | 6.0 | $ | 4.9 | $ | 11.8 | $ | 12.0 | |||||||
| Adjusted Net Income | £ | 4.6 | £ | 3.9 | £ | 9.2 | £ | 9.6 | |||||||
| Exchange Rate - $ to £ | 1.30 | 1.27 | 1.28 | 1.25 | |||||||||||
| Weighted average number of shares outstanding– diluted | 29,188,787 | 29,105,267 | 29,172,000 | 29,149,285 | |||||||||||
| Adjusted Net Income per diluted share | $ | 0.21 | $ | 0.17 | $ | 0.40 | $ | 0.41 | |||||||
| PRO-RATED SEGMENT ADJUSTED EBITDA CONTRIBUTION (in millions) (Unaudited) | |||||||||||||||||||||||||||||||
| Three Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||
| Gaming | Virtual Sports | Interactive | Leisure | Corporate Functions | Total | ||||||||||||||||||||||||||
| Total Revenue | $ | 23.3 | $ | 11.2 | $ | 10.2 | $ | 33.3 | $ | — | $ | 78.0 | |||||||||||||||||||
| Segment % of Total Revenue | 29.9% | 14.3% | 13.1% | 42.7% | 100.0% | ||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 10.7 | $ | 8.8 | $ | 6.9 | $ | 10.2 | $ | (6.5 | ) | $ | 30.1 | ||||||||||||||||||
| Corporate allocation(1) | (1.9 | ) | (0.9 | ) | (0.9 | ) | (2.8 | ) | 6.5 | — | |||||||||||||||||||||
| Segment-level Adjusted EBITDA including pro-rated corporate allocation | $ | 8.8 | $ | 7.9 | $ | 6.0 | $ | 7.4 | $ | — | $ | 30.1 | |||||||||||||||||||
| Segment Contribution to Adjusted EBITDA | 29.2% | 26.3% | 19.9% | 24.6% | 100.0% | ||||||||||||||||||||||||||
(1) Corporate allocation pro-rated by segment % of total revenue contribution
| Three Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||
| Gaming | Virtual Sports | Interactive | Leisure | Corporate Functions | Total | ||||||||||||||||||||||||||
| Total Adjusted Revenue | $ | 22.4 | $ | 13.4 | $ | 7.3 | $ | 31.7 | $ | — | $ | 74.8 | |||||||||||||||||||
| Segment % of Total Adjusted Revenue | 29.9% | 17.9% | 9.8% | 42.4% | 100.0% | ||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 8.3 | $ | 11.7 | $ | 4.7 | $ | 8.7 | $ | (6.7 | ) | $ | 26.7 | ||||||||||||||||||
| Corporate allocation(1) | (2.0 | ) | (1.2 | ) | (0.6 | ) | (2.9 | ) | 6.7 | — | |||||||||||||||||||||
| Segment-level Adjusted EBITDA including pro-rated corporate allocation | $ | 6.3 | $ | 10.5 | $ | 4.1 | $ | 5.8 | $ | — | $ | 26.7 | |||||||||||||||||||
| Segment Contribution to Adjusted EBITDA | 23.6% | 39.3% | 15.4% | 21.7% | 100.0% | ||||||||||||||||||||||||||
(1) Corporate allocation pro-rated by segment % of total Adjusted Revenue contribution
| Nine Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||
| Gaming | Virtual Sports | Interactive | Leisure | Corporate Functions | Total | ||||||||||||||||||||||||||
| Total Revenue | $ | 74.4 | $ | 35.3 | $ | 27.7 | $ | 79.3 | $ | — | $ | 216.7 | |||||||||||||||||||
| Segment % of Total Revenue | 34.3 | % | 16.3 | % | 12.8 | % | 36.6 | % | 100.0 | % | |||||||||||||||||||||
| Adjusted EBITDA | $ | 28.3 | $ | 28.8 | $ | 17.4 | $ | 18.1 | $ | (20.8 | ) | $ | 71.8 | ||||||||||||||||||
| Corporate allocation(1) | (7.1 | ) | (3.4 | ) | (2.7 | ) | (7.6 | ) | (20.8 | ) | — | ||||||||||||||||||||
| Segment-level Adjusted EBITDA including pro-rated corporate allocation | $ | 21.2 | $ | 25.4 | $ | 14.7 | $ | 10.5 | $ | — | $ | 71.8 | |||||||||||||||||||
| Segment Contribution to Adjusted EBITDA | 29.5 | % | 35.4 | % | 20.5 | % | 14.6 | % | 100.0 | % | |||||||||||||||||||||
(1) Corporate allocation pro-rated by segment % of total revenue contribution
| Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||
| Gaming | Virtual Sports | Interactive | Leisure | Corporate Functions | Total | ||||||||||||||||||||||||||
| Total Adjusted Revenue | $ | 76.2 | $ | 43.3 | $ | 19.9 | $ | 75.3 | $ | — | $ | 214.7 | |||||||||||||||||||
| Segment % of Total Adjusted Revenue | 35.5% | 20.1% | 9.3% | 35.1% | 100.0% | ||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 29.2 | $ | 37.5 | $ | 11.4 | $ | 16.1 | $ | (20.2 | ) | $ | 74.0 | ||||||||||||||||||
| Corporate allocation(1) | (7.2 | ) | (4.1 | ) | (1.8 | ) | (7.1 | ) | 20.2 | — | |||||||||||||||||||||
| Segment-level Adjusted EBITDA including pro-rated corporate allocation | $ | 22.0 | $ | 33.4 | $ | 9.6 | $ | 9.0 | $ | — | $ | 74.0 | |||||||||||||||||||
| Segment Contribution to Adjusted EBITDA | 29.8% | 45.1% | 12.9% | 12.2% | 100.0% | ||||||||||||||||||||||||||
(1) Corporate allocation pro-rated by segment % of total Adjusted Revenue contribution
FAQ
What was Inspired Entertainment's (INSE) revenue in Q3 2024?
How much did INSE's Interactive segment grow in Q3 2024?
What was Inspired Entertainment's (INSE) net income for Q3 2024?
Who is the new CFO of Inspired Entertainment (INSE)?
