Q1 2024 Inspired Entertainment Inc Earnings Call Transcript
Key Points
- Record levels of equipment sales backlog, indicating strong future revenue potential.
- Interactive business recorded a strong quarter with revenue up 31% year-over-year on a functional currency basis and EBITDA up 38%.
- Anticipated dramatic improvement in EBITDA in the second quarter, with a possible 50% sequential increase.
- Successful launch of new products in the Interactive segment and expansion into new markets like Latin America.
- Operational restructuring underway expected to generate significant company-wide margin improvement starting mostly in 2025.
- Incurred over $10 million in expenses related to accounting restatement, impacting EBITDA and cash flow.
- Delivery dates for equipment sales backlog moved to the second half of the year, delaying revenue recognition.
- Virtual Sports business experienced a pullback, although it has begun to stabilize.
- Loss of a service contract for SSBTs and delayed rollout of Vantage cabinet impacted the gaming segment.
- Additional charges expected in Q2 related to ongoing remediation efforts around material weaknesses.
Good morning, everyone, and welcome to the Inspired Entertainment first-quarter 2024 conference call. (Operator Instructions) Please note today's event is being recorded.
Please refer to the company's Safe Harbor statement that appears in the first-quarter 2024 earnings press release, which is also available in the Investors section of the company's website at www.inseinc.com. This Safe Harbor statement also applies to today's conference call as the company's management will be making certain statements that will be considered forward-looking under securities laws and rules of the SEC. These statements are based on management's current expectations or beliefs and are subject to risks, uncertainties and changes in circumstances. In addition, please note that the company will discuss both GAAP and non-GAAP financial measures. A reconciliation is included in the earnings press release.
With that completed, I would now like to turn the conference call over to Lorne Weil, the company's Executive Chairman. Mr. Weil, please go
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