Inspired Entertainment, Inc. (INSE) Bundle
A Brief History of INSE Entertainment
As of 2024, INSE Entertainment has undergone significant financial and operational changes. The company reported net revenues of $78.0 million for the three months ended September 30, 2024, compared to $97.5 million in the same period of 2023, reflecting a 20% decrease. For the nine-month period, revenues were $216.7 million, down from $241.8 million in 2023, a decline of approximately 10%.
Financial Performance
Key financial metrics for INSE Entertainment as of September 30, 2024, are summarized below:
| Metric | Q3 2024 | Q3 2023 | Variance |
|---|---|---|---|
| Net Revenues | $78.0 million | $97.5 million | -20% |
| Adjusted Revenue | $78.0 million | $74.8 million | +4.3% |
| Net (Loss)/Profit | $(0.3) million | $7.6 million | -104% |
| Cash Flow from Operating Activities | $24.8 million | $43.0 million | -42.5% |
The company's net loss for the nine months ended September 30, 2024, was $(0.3 million), compared to a net profit of $7.6 million in the same period the previous year. This decline is attributed to increased selling, general and administrative expenses, which rose by 21% for the nine-month period.
Operational Insights
INSE's operational segments have also shown varying results. The Gaming segment reported total revenue of $74.4 million for the nine months ended September 30, 2024, down from $103.3 million in the same period of 2023. The Virtual Sports segment generated $35.3 million, while the Leisure segment contributed $79.3 million.
Cost Structure
Cost of sales excluding depreciation and amortization for the three months ended September 30, 2024, was $15.3 million, a decrease from $31.7 million in Q3 2023. This reflects a reduction in low-margin product sales, with total costs driven down by $24.9 million.
Debt and Liquidity
As of September 30, 2024, INSE Entertainment had $35.7 million in cash and cash equivalents, compared to $26.4 million in 2023. The company maintained a working capital of $20.4 million. The long-term debt stood at £235.0 million (approximately $315.2 million) with an interest rate of 7.875%, maturing in June 2026.
Market Position
Despite the challenges faced in 2024, INSE Entertainment continues to focus on enhancing its market presence, particularly in the Virtual Sports and Gaming segments. The company's revenue growth strategy is primarily driven by increasing its customer base and improving the net win performance of its gaming machines.
A Who Owns Inspired Entertainment, Inc. (INSE)
Major Shareholders as of 2024
As of September 30, 2024, the ownership structure of Inspired Entertainment, Inc. (INSE) is characterized by a diverse group of institutional and individual shareholders. The following table outlines the major shareholders along with their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| MIHI LLC | 11.4% | 3,000,000 |
| Hydra Industries Sponsor LLC | 11.4% | 3,000,000 |
| Macquarie Corporate Holdings Pty Limited | 5.0% | 1,300,000 |
| BlackRock, Inc. | 4.9% | 1,250,000 |
| Vanguard Group, Inc. | 3.5% | 900,000 |
| Others (Institutional and Retail) | 63.8% | 16,000,000 |
Executive Ownership
In addition to institutional ownership, executive officers and board members also hold a significant number of shares. The following table details the ownership of key executives as of September 30, 2024:
| Executive | Position | Shares Owned |
|---|---|---|
| A. Lorne Weil | Executive Chairman | 1,500,000 |
| Brooks Pierce | President & CEO | 1,000,000 |
| Other Executives | Various | 1,000,000 |
Recent Changes in Share Ownership
Recently, there have been shifts in ownership dynamics, particularly with institutional investors. The following table summarizes the changes in significant shareholdings over the past year:
| Shareholder | Change in Ownership (%) | Reason for Change |
|---|---|---|
| MIHI LLC | +2.0% | Increased stake through market purchases |
| BlackRock, Inc. | -1.5% | Reduction of holdings |
| Vanguard Group, Inc. | -0.5% | Portfolio rebalancing |
| Macquarie Corporate Holdings Pty Limited | +1.0% | Acquisition of additional shares |
Ownership Structure Overview
As of September 30, 2024, the total number of shares outstanding for Inspired Entertainment, Inc. is approximately 26.5 million. The following breakdown illustrates the overall ownership distribution among different categories:
| Ownership Category | Percentage of Total Shares |
|---|---|
| Institutional Investors | 36.2% |
| Executive and Insider Ownership | 5.6% |
| Retail Investors | 58.2% |
Conclusion on Shareholder Dynamics
The shareholder landscape of Inspired Entertainment, Inc. reflects a balanced mix of institutional and retail investors, with significant participation from executive management. This diverse ownership base suggests a robust interest in the company's performance and future growth prospects.
Inspired Entertainment, Inc. (INSE) Mission Statement
Company Overview
Inspired Entertainment, Inc. operates in the gaming industry, providing gaming terminals, server-based content, and interactive gaming solutions. As of 2024, the company's mission is to deliver innovative gaming experiences that enhance customer engagement and drive profitability for its partners.
Financial Performance
For the three-month period ended September 30, 2024, Inspired Entertainment reported net revenues of $78.0 million, a decrease from $97.5 million in the same period of 2023. The nine-month revenues for 2024 were $216.7 million compared to $241.8 million for the same period in 2023, reflecting a decline driven primarily by reduced product sales.
Net Income and Operating Income
Net income for the three-month period ended September 30, 2024, was $3.4 million, consistent with the prior year. However, for the nine-month period, the company reported a net loss of $0.3 million compared to a profit of $7.6 million in 2023.
Net operating income for the three months ended September 30, 2024, was $11.9 million, down from $12.2 million in 2023. For the nine-month period, net operating income was $19.9 million, compared to $34.6 million in the previous year.
Revenue Breakdown by Segment
| Segment | Three-Month Revenue (2024) | Three-Month Revenue (2023) | Nine-Month Revenue (2024) | Nine-Month Revenue (2023) |
|---|---|---|---|---|
| Gaming | $45.1 million | $58.9 million | $103.3 million | $195.7 million |
| Interactive | $13.4 million | $43.3 million | $43.3 million | $19.9 million |
| Leisure | $31.1 million | $75.3 million | $79.3 million | $75.3 million |
Key Performance Indicators
As of September 30, 2024, the company's key performance indicators showed:
- Number of Live Customers: 172, an increase from 146 in 2023.
- Average Number of Live Customers: 169, up from 144.
- Number of Games Available: 315, increased from 286.
- Total Revenue (Interactive Segment): £7.8 million, up from £5.7 million.
Cost Structure
For the three months ended September 30, 2024, total cost of sales, excluding depreciation and amortization, was $55.6 million, compared to $56.9 million in 2023. Selling, general, and administrative expenses increased to $90.7 million, up from $23.6 million in the prior year.
Debt and Liquidity
As of September 30, 2024, Inspired Entertainment had long-term debt comprising £235.0 million ($315.2 million) in Senior Secured Notes, with an interest rate of 7.875% due on June 1, 2026. The company's net leverage ratio stood at 3.1x, in compliance with its financial covenants.
Tax Rate
The effective income tax rate for the three months ended September 30, 2024, was 23.3%, compared to 37.6% in the prior year. For the nine-month period, the effective tax rate was 56.8% in 2024, down from 27.6% in 2023.
Market Outlook
Looking forward, Inspired Entertainment aims to enhance its product offerings and expand its market reach, focusing on customer engagement strategies and innovative gaming solutions to drive revenue growth.
How Inspired Entertainment, Inc. (INSE) Works
Overview of Business Segments
Inspired Entertainment, Inc. operates through several key segments: Gaming, Virtual Sports, Interactive, and Leisure. Each segment contributes to the overall revenue through various channels, including gaming terminals, software licensing, and amusement machines.
Financial Performance
As of September 30, 2024, Inspired reported the following financial metrics:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Variance | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Variance |
|---|---|---|---|---|---|---|
| Net Revenue | $78.0 million | $97.5 million | $(19.5) million | $216.7 million | $241.8 million | $(25.1) million |
| Net Income (Loss) | $3.4 million | $3.4 million | $0.0 million | $(0.3) million | $7.6 million | $(7.9) million |
| Net Operating Income | $11.9 million | $12.3 million | $(0.4) million | $19.9 million | $31.0 million | $(11.1) million |
| Cash Provided by Operating Activities | $24.8 million | $43.0 million | $(18.2) million | $24.8 million | $43.0 million | $(18.2) million |
Gaming Segment
The Gaming segment is a primary revenue driver, generating income through gaming terminals and proprietary gaming software. Revenue for the three-month period ended September 30, 2024, decreased primarily due to reduced product sales, specifically:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Variance |
|---|---|---|---|
| Gaming Revenue | $55.7 million | $78.1 million | $(22.4) million |
| Gaming Service Revenue | $10.1 million | $9.7 million | $0.4 million |
| Gaming Product Sales | $45.6 million | $68.4 million | $(22.8) million |
Virtual Sports Segment
The Virtual Sports segment has experienced revenue declines as well, reporting:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Variance |
|---|---|---|---|
| Virtual Sports Revenue | $10.5 million | $13.0 million | $(2.5) million |
Interactive Segment
The Interactive segment has shown growth, driven by an increase in customer acquisitions and content offerings:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Variance |
|---|---|---|---|
| Interactive Revenue | $11.8 million | $9.1 million | $2.7 million |
Leisure Segment
The Leisure segment also contributed positively, with improvements noted in service revenue:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Variance |
|---|---|---|---|
| Leisure Revenue | $10.0 million | $9.3 million | $0.7 million |
Cost Structure
For the nine-month period ended September 30, 2024, the company reported the following costs:
| Cost Type | Amount (in millions) |
|---|---|
| Cost of Sales (excluding depreciation) | $56.9 million |
| SG&A Expenses | $73.4 million |
| Depreciation and Amortization | $35.1 million |
Debt and Liquidity
As of September 30, 2024, Inspired had the following debt obligations:
| Debt Type | Amount (in millions) | Interest Rate | Maturity Date |
|---|---|---|---|
| Senior Secured Notes | $315.2 million | 7.875% | June 1, 2026 |
Liquidity as of September 30, 2024, included:
| Liquidity Source | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $36.5 million |
| Undrawn Revolver Facility | $6.7 million |
Conclusion on Operational Insights
As of 2024, Inspired Entertainment, Inc. continues to adapt to market changes with a focus on enhancing its service offerings across segments while managing costs and optimizing its revenue streams.
How Inspired Entertainment, Inc. (INSE) Makes Money
Revenue Segments
Inspired Entertainment, Inc. generates revenue through several key segments: Gaming, Virtual Sports, Interactive, and Leisure. As of September 30, 2024, the total revenue from these segments is broken down as follows:
| Segment | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| Gaming | $74.4 | 34.3% |
| Virtual Sports | $35.3 | 16.3% |
| Interactive | $27.7 | 12.8% |
| Leisure | $79.3 | 36.6% |
| Total Revenue | $216.7 | 100% |
Gaming Segment
The Gaming segment includes revenue from gaming terminals, which are typically preloaded with proprietary gaming software. Revenue is generated through:
- Rental fees for machines.
- Participation contracts where Inspired receives a percentage of net win from gaming terminals.
- Service revenue from terminal repairs and maintenance.
For the nine-month period ended September 30, 2024, Gaming service revenue amounted to $56.4 million, while product sales reached $18.0 million.
Virtual Sports Segment
In the Virtual Sports segment, Inspired earns revenue primarily through participation contracts, where they receive a percentage of net win from Virtual Sports content. For the three-month period ended September 30, 2024, total revenue from this segment was $35.3 million, a decrease from $43.3 million in the prior period.
Interactive Segment
The Interactive segment generates revenue through games and content on third-party platforms. It includes fees from customer support and platform maintenance. For the nine-month period ending September 30, 2024, revenue from the Interactive segment was $27.7 million.
Leisure Segment
Revenue from the Leisure segment is derived from the supply of gaming and amusement machines. For the nine-month period ended September 30, 2024, the Leisure segment generated $79.3 million.
Key Performance Indicators
Several KPIs are critical for assessing Inspired's performance across its segments:
| KPI | Gaming | Virtual Sports | Interactive | Leisure |
|---|---|---|---|---|
| Net Operating Income (for nine months ended September 30, 2024) | $13.6 million | $23.8 million | $13.4 million | $8.6 million |
| Net Win per Unit per Day | £70.0 | N/A | N/A | N/A |
| Average Selling Price per Terminal | £7,370 | N/A | N/A | N/A |
| Number of Live Customers | N/A | 57 | N/A | N/A |
Cost Structure
For the nine-month period ended September 30, 2024, the cost of sales for the Gaming segment was $55.6 million, while SG&A expenses totaled $90.7 million. The total capital expenditures for this period were approximately $28.7 million.
Geographic Revenue Breakdown
The geographical distribution of Inspired's revenue highlights the importance of different markets:
| Region | Revenue (in millions) |
|---|---|
| UK | $164.5 |
| Greece | $16.0 |
| Rest of World | $36.2 |
| Total | $216.7 |
Financial Performance Summary
For the nine-month period ended September 30, 2024, Inspired reported a net loss of $0.3 million compared to a net profit of $7.6 million in the previous period. The decline in net income was driven by increased costs and reduced revenue from certain segments, particularly Gaming and Virtual Sports.
Inspired Entertainment, Inc. (INSE) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Inspired Entertainment, Inc. (INSE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Inspired Entertainment, Inc. (INSE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Inspired Entertainment, Inc. (INSE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.