NASDAQ$INSE

Inspired Entertainment Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

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

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.

Headline financials

Total Revenue

$74.9M

Previous: $77.6M-3.5%
EPS (adj)

$0.35

Previous: $0.30+16.7%
Capital Expenditures

-$16.6M

Previous: -$8.5M-95.3%
Free Cash Flow

-$6.4M

Previous: $16.5M-138.8%
Net Income

$10.2M

Previous: $25M-59.2%
Operating Income

$16.2M

Previous: $14.9M+8.7%
Gross Profit

$60.7M

Previous: $63.8M-4.9%
Cash & Equivalents

$37.4M

Previous: $37.1M+0.8%
Total Assets

$287M

Previous: $304M-5.7%
Stock-Based Comp

$2.5M

Previous: $3.8M-34.2%

Revenue & EPS history

Inspired · Revenue · Quarterly

$74.9M

Q3 2022-3.5%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Inspired · $69.8M total across 4 segments · Q3 2022

  • Leisure
    $30.5M-8.7%
  • Gaming
    $19M-31.2%
  • Virtual Sports
    $14.6M+39.0%
  • Interactive
    $5.7M-6.6%

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.

Tailwinds

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

Headwinds

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

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 Q3 2022

Historical avgQ3 2022

+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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