Overview
Inspired Q2 revenue rises 7% yr/yr, driven by record Interactive growth
Adjusted EBITDA for Q2 up 15%, fueled by Interactive segment performance
Co completes debt refinancing, issuing £270 mln notes and £17.8 mln credit facility
Outlook
Company optimistic about Virtual Sports growth in Brazil and UK
Inspired expects continued growth in Interactive segment
Company sees Gaming segment benefiting from Greece terminal deployments
Result Drivers
INTERACTIVE GROWTH - Interactive revenue rose 45% yr/yr, driven by North America and UK markets
GAMING PERFORMANCE - Gaming Adjusted EBITDA increased 35% due to Vantage cabinets rollout and cost efficiencies
VIRTUAL SPORTS MOMENTUM - Sequential growth in Virtual Sports driven by new content in Brazil and expanded UK partnerships
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
$80.30 mln
Q2 Net Income
-$7.80 mln
Q2 Adjusted EBITDA
$28.40 mln
Q2 Adjusted EBITDA Margin
35.0%
Q2 Operating Income
$7.90 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for Inspired Entertainment Inc is $12.50, about 29.4% above its August 5 closing price of $8.82
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release: ID:nGNX80yDG7
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)