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Sep 30, 2022

Inspired Q3 2022 Earnings Report

Reported strong third quarter results with growth in the online business and strength in the Gaming and Leisure segments.

Key Takeaways

Inspired Entertainment reported a strong third quarter, with Adjusted EBITDA exceeding last year's record performance on a functional currency basis. The company saw growth in its online business, particularly in Virtual Sports, and strength in its Gaming and Leisure segments. Total Revenue was $74.9 million compared to $77.6 million in the prior-year period.

Virtual Sports continued its impressive growth trajectory, producing its fifth record-setting Revenue and Adjusted EBITDA quarter in a row.

Online Virtual Sports doubled year-over-year versus strong comparatives.

The addition of new content and customers in Pennsylvania has led to an acceleration in Interactive growth rates in October.

Land-based business has held strong, with consumers continuing to frequent betting shops and pubs and staying local for holidays.

Total Revenue
$74.9M
Previous year: $77.6M
-3.5%
EPS
$0.35
Previous year: $0.3
+16.7%
Gross Profit
$56.8M
Previous year: $59.1M
-3.9%
Free Cash Flow
$18.9M
Previous year: $16.7M
+13.2%
Total Assets
$287M
Previous year: $304M
-5.7%

Inspired

Inspired

Inspired Revenue by Segment

Forward Guidance

Inspired Entertainment continues to see solid results from its retail and digital businesses, demonstrating the strength and resilience of its business. The company remains mindful of the potential for a shifting macro environment, and are diligently managing cost containment efforts.

Positive Outlook

  • Solid results from retail and digital businesses.
  • Strength and resilience of the business.
  • Healthy underlying momentum.
  • Diversification of business model.
  • Strong development pipeline.

Challenges Ahead

  • Potential for a shifting macro environment.
  • Managing cost containment efforts.
  • Inflation.
  • Supply chain issues.
  • Significant cost pressures in the Holiday Parks business.

Revenue & Expenses

Visualization of income flow from segment revenue to net income