NASDAQ$INSE

Inspired Entertainment Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported positive results despite the temporary suspension of the Company’s worldwide land-based business.

Inspired Entertainment reported financial results for the second quarter ended June 30, 2020. Total Revenue was $15.6 million and Adjusted EBITDA was $2.1 million. The company's online business showed strength, with revenues increasing by $4.9 million from the second quarter of 2019 on a pro forma basis.

  • Aggressive cost-savings measures and strong demand in our online business helped to compensate for the retail closures.
  • Retail venues have re-opened and the company is encouraged by the initial results.
  • The performance of the online business continues to exhibit resiliency, with July revenues across our online channels increasing by approximately 82% year over year.
  • The company finalized an agreement with lenders to amend debt covenants without the requirement to raise additional capital.

Headline financials

Total Revenue

$15.6M

Previous: $33.7M-53.7%
EPS (adj)

-$1.09

Previous: -$0.48-127.1%
Capital Expenditures

-$8.8M

Previous: -$1.33M-564.2%
Free Cash Flow

-$33.3M

Previous: -$6.28M-430.4%
Net Income

-$24.5M

Previous: -$4.95M-394.6%
Operating Income

-$13.9M

Previous: -$702K-1880.1%
Gross Profit

$15.6M

Previous: $20.4M-23.5%
Cash & Equivalents

$39.9M

Previous: $19M+109.6%
Total Assets

$303M

Previous: $188M+61.6%
Stock-Based Comp

$1M

Previous: $2.32M-56.9%

Revenue & EPS history

Inspired · Revenue · Quarterly

$15.6M

Q2 2020-53.7%vs Q2 2019
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Revenue by segment

Inspired · $72.5M total across 4 segments · Q4 2022

  • Gaming
    $31.9M
  • Leisure
    $19.4M
  • Virtual Sports
    $14.9M
  • Interactive
    $6.3M

Forward guidance

The company remains confident in the long-term fundamentals of its business and is upbeat on the outlook for the third quarter and beyond, expecting continued growth in the online business.

Tailwinds

  • Return of land-based business
  • Continued growth in online business
  • Upside from North American penetration
  • Accelerated UK Pub and Leisure digitization
  • Additional customers coming onboard digitally distributed business lines

Headwinds

  • COVID-19 global pandemic will remain challenging
  • COVID-19 global pandemic will remain unpredictable

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+2.8%

Avg return

Earnings day

+2.5%

Avg return

5 days after

+2.6%

Avg return

30 days after

45%

20 / 44 earnings

Positive

+23.3%

Q1 2022

Best reaction

-11.8%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+12.2%+1.9%+3.6%
Q4 2025-4.4%-21.1%-18.0%
Q3 2025+12.8%+9.9%+15.7%
Q1 2025+4.6%+13.7%+8.4%
Q4 2024+9.6%+5.6%-12.4%
Q3 2024+4.6%+6.6%-4.3%
Q2 2024+5.1%+2.9%+7.0%
Q1 2024-6.5%-7.2%-3.1%
Q4 2023-3.9%-7.1%-8.5%
Q3 2023-7.6%-6.9%-4.8%
Q2 2023-4.5%-2.4%-6.0%
Q1 2023+11.1%+12.3%+19.9%
Q4 2022-11.8%-17.8%-23.7%
Q3 2022+16.5%+21.5%+25.3%
Q2 2022+14.8%+11.8%+1.0%
Q1 2022+23.3%+25.2%+35.2%
Q4 2021+10.7%+18.1%-16.9%
Q3 2021+6.0%-0.2%-19.3%
Q2 2021+4.1%+2.1%+3.4%
Q1 2021-0.9%-7.0%+37.7%
Q4 2020+23.2%+29.4%+19.8%
Q3 2020+18.0%+12.0%+32.0%
Q2 2020-3.6%+3.9%-10.9%
Q1 2020+7.6%+16.1%+60.2%
Q4 2019-11.8%-17.9%-51.8%
Q3 2019+0.2%-3.3%-6.9%
Q2 2019+14.3%+7.5%+7.5%
Q1 2019-5.1%-3.0%-2.1%
Q4 2018-3.4%-5.6%+5.1%
Q3 2018-6.9%-7.9%-17.1%
Q2 2018+22.1%+22.1%+9.6%
Q1 2018-7.6%-14.5%-19.1%
Q4 2017-8.4%-5.8%+2.9%
Q3 2017-0.5%+0.5%+22.3%
Q1 2017-2.8%+1.9%+18.0%
Q4 2016-5.3%-5.7%-9.5%
Q3 2016+0.0%-1.5%+0.5%
Q2 2016+0.0%+3.2%+0.0%
Q1 2016+0.0%
Q4 2015+0.1%
Q3 2015+0.0%
Q2 2015+0.0%
Q1 2015-0.4%
Q4 2014+0.0%
Q3 2014

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