NASDAQ$INSE

Inspired Entertainment Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Inspired Entertainment reported Q4 2020 results, which were impacted by COVID-19 closures but showed strength in online channels.

Inspired Entertainment reported Total Revenue of $71.7 million and Adjusted EBITDA of $34.9 million in the fourth quarter 2020. Results include a $32.5 million revenue and $31.7 million Adjusted EBITDA payment from a UK LBO customer related to a VAT rebate.

  • October revenue was $21.2 million and Adjusted EBITDA was $6.8 million, nearly 20% above October 2019.
  • Revenue and Adjusted EBITDA were negatively impacted in November and December by COVID-19 closures.
  • Aggregate business across Online Virtuals and Interactive channels showed strength, with revenues increasing sequentially.
  • The company expects the UK business to be on a run rate similar to Q3 2020 by the end of Q2 2021, assuming the UK ends its lockdown.

Headline financials

Total Revenue

$71.7M

Previous: $66.4M+8.0%
EPS (adj)

$0.49

Previous: -$0.58+184.5%
Capital Expenditures

$3.5M

Previous: $5.6M-37.5%
Free Cash Flow

$17.9M

Previous: $2.7M+563.0%
Net Income

$12.4M

Previous: -$12.80+96875100.0%
Operating Income

$19.3M

Previous: -$2.10+919047719.0%
Gross Profit

$58.9M

Previous: $39.20+150255002.0%
Cash & Equivalents

$47.1M

Previous: $29.1M+61.9%
Total Assets

$324M

Previous: $327M-1.0%
Stock-Based Comp

$1.7M

Previous: $2.4M-29.2%

Revenue & EPS history

Inspired · Revenue · Quarterly

$71.7M

Q4 2020+8%vs Q4 2019
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Inspired · $71.7M total across 4 segments · Q4 2020

  • Gaming
    $50.5M
  • Virtual Sports
    $8.7M+93548287.1%
  • Leisure
    $8.3M
  • Interactive
    $4.2M

Forward guidance

The UK is expected to remain on lockdown through the first quarter 2021, and the UK will ease lockdown restrictions in stages with LBOs reopening in April, pubs and holiday parks reopening in May and an end of the lockdown by June 21st.

Tailwinds

  • UK will ease lockdown restrictions in stages with LBOs reopening in April
  • Pubs and holiday parks reopening in May
  • End of the lockdown by June 21st
  • Online business having grown substantially year over year with continuing expectations for growth from that higher starting point due to a strong business development pipeline
  • Holiday park business back to pre-pandemic levels

Headwinds

  • The UK is expected to remain on lockdown through the first quarter 2021

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 Q4 2020

Historical avgQ4 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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