Inspired (INSE) Announces Fourth Quarter And Year End 2024 Earnings Results

Inspired Entertainment, Inc. (INSE) today announced its financial results for the latest quarter, showcasing a strong performance that exceeded market expectations. The company reported earnings per share of $2.33, significantly surpassing the estimated $0.22541, marking a substantial beat. Additionally, Inspired Entertainment achieved a quarterly revenue of $83 million, outpacing the anticipated $79.14 million by $3.86 million. These results highlight the company’s robust growth and operational efficiency in the current economic climate.

Key Highlights:

• Fourth Quarter Revenue of $83.0 million, driven by a 45% year-over-year increase in Interactive revenue.
• Fourth Quarter Net Income of $68.0 million and Adjusted Net Income of $4.7 million.
• Fourth Quarter Adjusted EBITDA of $30.9 million, up 22% from last year, with Interactive Adjusted EBITDA up 105% year-over-year.
• Successful launch of MGM Bonus City game with BetMGM in Michigan and Hybrid Dealer Roulette game in Canada.
• Partnership with William Hill progressing with the installation of 5,000 new Vantage cabinets.
• Strategic measures in Virtual Sports to streamline business and product development.
• Leisure segment revenue increased by 7%, driven by Vantage deployments and growth in bingo, MSA, and holiday park businesses.

Summary:

Inspired Entertainment, Inc. reported strong financial results for the fourth quarter and full year of 2024, highlighting significant growth in its Interactive segment, which saw a 45% increase in revenue year-over-year. The company’s Adjusted EBITDA for the quarter rose by 22% to $30.9 million, with the Interactive segment’s Adjusted EBITDA more than doubling. Executive Chairman Lorne Weil emphasized the strength and resilience of Inspired’s diversified business model, noting the scalability of their digital operations and the successful rollout of new products like the MGM Bonus City game and the Hybrid Dealer Roulette game. The company also announced a robust pipeline for its Hybrid Dealer product, with plans to expand its offerings in 2025.

In the Gaming segment, Inspired achieved a 42% growth in segment Adjusted EBITDA for the fourth quarter, driven by operational efficiencies and a favorable revenue mix. The partnership with William Hill is on track, with the installation of 5,000 new Vantage cabinets expected to be completed by the end of the first quarter. Despite challenges in the Virtual Sports segment, the company is implementing strategic measures to unify product and platform teams, aiming for future growth. The Leisure segment also showed steady growth, with a 7% increase in revenue. Looking ahead, Inspired is focused on expanding its digital businesses, optimizing land-based operations, and exploring new market opportunities to drive sustainable growth and shareholder value.

Inspired Entertainment, Inc. (INSE) has experienced a turbulent period in the stock market, with its share price plummeting by 23.56% over the past month alone. This sharp decline is part of a broader downward trend, as the stock has fallen by 8.12% in just the last week and 9.32% over the past three months. Despite these price challenges, the company’s fundamentals present a mixed picture. The price-to-earnings ratio stands at 19.26, suggesting that the stock might still be considered reasonably valued by some investors. However, the earnings per share (EPS) two-year compound annual growth rate (CAGR) is a concerning -57.53%, indicating significant earnings contraction. On a more positive note, the revenue two-year CAGR is a modest 4.31%, and the return on invested capital is a healthy 12.97%, reflecting some operational efficiency. The net profit margin of 2.66% is relatively thin, which might be contributing to investor apprehension. Overall, while there are some bright spots in its financial metrics, the recent price declines suggest that investors are wary of the company’s future growth prospects.

Inspired Entertainment, Inc., a business-to-business gaming technology company, supplies content, platform, and other products and services to regulated lottery, betting, and gaming operators worldwide. The company operates through four segments: Gaming, Virtual Sports, Interactive, and Leisure. The Gaming segment supplies gaming terminals and software to betting offices, casinos, gaming halls, and high street adult gaming centers; a portfolio of games through its digital terminals under the Centurion and Super Hot Fruits names; and traditional casino games, such as roulette, blackjack, and number games. The Virtual Sports segment designs, develops, markets, and distributes ultra-high-definition sports games that include greyhounds, tennis, motor racing, cycling, cricket, speedway, golf, and dart, and other horse racing games under the V-Play Soccer, V-Play Football, V-Play Basketball, Virtual Grand National, and V-Play NFLA names. The Interactive segment provides a range of premium random number generated casino content from feature-rich bonus games to European-style casino free spins and table games. The Leisure segment supplies gaming terminals and amusement machines in pubs, bingo halls, and adult gaming centers, as well as family entertainment centers, bowling centers, and other entertainment venues. Inspired Entertainment, Inc. is headquartered in New York, New York.