Mission Statement, Vision, & Core Values (2024) of Inspired Entertainment, Inc. (INSE)

An Overview of Inspired Entertainment, Inc. (INSE)

An Overview of Inspired Entertainment, Inc. (INSE)

Founded in 2010, Inspired Entertainment, Inc. (INSE) is a global leader in the gaming technology and entertainment sector, providing a diverse range of gaming and amusement solutions. The company specializes in the design, development, and delivery of gaming products, including Virtual Sports, Gaming terminals, and Interactive content. As of 2024, Inspired Entertainment continues to innovate by offering engaging gaming experiences across various platforms, catering to customers in multiple jurisdictions.

As of 2024, Inspired Entertainment reported total sales of $216.7 million for the nine-month period ended September 30, 2024, compared to $241.8 million for the same period in 2023. The company has effectively reduced its low-margin gaming sales to zero for the current reporting period, indicating a strategic shift towards higher-margin products.

Company's Financial Performance in the Latest Financial Reports

In the latest financial reports for the three months ending September 30, 2024, Inspired Entertainment reported net revenues of $78.0 million, a decrease from $97.5 million in the previous year. However, when adjusting for low-margin sales, adjusted revenue rose to $78.0 million from $74.8 million year-over-year. This reflects an overall growth strategy focused on more profitable segments.

For the nine months ended September 30, 2024, the company showed a net loss of $0.3 million, a significant decline from a net income of $7.6 million during the same period in 2023. The decline in net income was primarily attributed to increased selling, general, and administrative expenses, which rose by 21% to $90.7 million, influenced by costs related to the restatement of prior financial statements and increased operational costs.

In terms of segment performance, Interactive revenue increased by $7.2 million, driven by growth in the UK, mainland Europe, and North America. The Leisure segment also performed well, reporting an increase of $2.2 million, attributed mainly to growth in Holiday Parks and Motorway Service Areas.

Introduction to Company as One of the Leaders in the Industry

Inspired Entertainment has established itself as a leader in the gaming technology industry, known for its commitment to innovation and quality. The company has successfully expanded its market presence through strategic partnerships and the introduction of new gaming content. As of September 30, 2024, Inspired Entertainment operates with a robust portfolio that includes over 315 live games and 172 live customers, demonstrating significant growth in its customer base and offerings. The company continues to leverage its technological expertise and industry knowledge to maintain a competitive edge in a rapidly evolving market.

Mission Statement of Inspired Entertainment, Inc. (INSE)

Mission Statement of Inspired Entertainment, Inc. (INSE)

The mission statement of Inspired Entertainment, Inc. reflects the company's commitment to delivering high-quality gaming and entertainment experiences across various platforms. It serves as a guiding principle for the organization, informing its strategic decisions and long-term goals. As of 2024, Inspired Entertainment aims to enhance player engagement through innovative solutions and outstanding customer service. This mission is supported by a robust operational framework that emphasizes performance and adaptability in a competitive market.

Core Component 1: High-Quality Products

Inspired Entertainment is dedicated to providing high-quality gaming products that meet the evolving demands of its customers. The company generates revenue from its Gaming segment through a combination of proprietary gaming software and hardware. In the three months ended September 30, 2024, Inspired reported total revenue of $78.0 million, down from $97.5 million in the same period the previous year. This decline was attributed mainly to lower product sales and changes in market dynamics.

This commitment to quality is evident in their continuous investment in product development, which amounted to $28.7 million for capital and other long-lived intangible asset expenditures in the nine months ended September 30, 2024. The company’s strategy includes leveraging technology to enhance gaming experiences, thereby increasing customer satisfaction and loyalty.

Core Component 2: Customer Engagement

Another critical element of Inspired Entertainment's mission is enhancing customer engagement. The company focuses on building long-term relationships with its operator customers through tailored gaming solutions and exceptional service. As of September 30, 2024, Inspired had 172 live customers, a 17.8% increase from the previous year, indicating a growing market presence.

This growth in customer numbers is complemented by an increase in the number of games available, which reached 315 by the end of the third quarter. Inspired’s strategy emphasizes not only expanding its customer base but also enhancing the gaming portfolio to keep customers engaged and satisfied.

Core Component 3: Operational Excellence

Operational excellence is a cornerstone of Inspired Entertainment’s mission. The company strives for efficiency and effectiveness in its operations, which is reflected in its financial performance metrics. For the nine months ended September 30, 2024, Inspired reported net operating income of $19.9 million, a decrease from $30.6 million in the prior year. The decline was primarily due to increasing selling, general, and administrative expenses, which rose to $96.4 million compared to $82.7 million for the same period in 2023.

To counteract these challenges, Inspired Entertainment is focused on optimizing its cost structure while continuing to invest in technology and infrastructure. This approach ensures that the company remains competitive and can sustain its growth trajectory despite market fluctuations.

Vision Statement of Inspired Entertainment, Inc. (INSE)

Vision Statement Overview

The vision statement of Inspired Entertainment, Inc. (INSE) emphasizes the company's commitment to becoming a leading provider of gaming and entertainment solutions globally. This vision is reflected in their strategic initiatives aimed at innovation, customer engagement, and market expansion.

Commitment to Innovation

As of 2024, Inspired Entertainment aims to leverage cutting-edge technology to enhance its gaming offerings. The company has allocated approximately $28.7 million for capital expenditures related to technology and product development during the first nine months of 2024, showcasing its dedication to innovation.

Global Market Expansion

Inspired Entertainment is focused on expanding its footprint in international markets. The company reported revenue of $216.7 million for the nine months ended September 30, 2024, compared to $241.8 million in the same period in 2023, indicating a strategic shift to optimize operations and focus on high-potential markets.

Customer Engagement and Experience

Enhancing customer engagement is a core component of INSE’s vision. The company aims to improve user experience through its diverse product offerings. As of September 30, 2024, the number of live customers increased to 172, up from 146 in the previous year, reflecting a 17.8% growth.

Financial Performance and Sustainability

Financial sustainability remains a priority for Inspired Entertainment. For the three months ended September 30, 2024, the company reported a net income of $3.4 million, consistent with the same period in 2023, while net operating income decreased to $11.9 million from $12.2 million. This stability in net income signifies effective cost management despite fluctuations in revenue.

Strategic Partnerships and Collaborations

In pursuit of its vision, Inspired Entertainment has been actively seeking strategic partnerships with various operators. The company recognizes the importance of collaboration in enhancing its service offerings and expanding market reach. It is crucial for achieving their long-term goals in the competitive gaming landscape.

Core Values of Inspired Entertainment, Inc. (INSE)

Integrity

Integrity is a core value at Inspired Entertainment, Inc. (INSE), emphasizing honesty and ethical practices in all business dealings. The company's commitment to integrity is evident in its transparent financial reporting and adherence to regulatory standards.

For example, as of September 30, 2024, INSE reported a net income of $3.4 million for the third quarter, consistent with its goal of maintaining transparent financial practices. The company has established strict compliance protocols to ensure that all operations align with legal and ethical standards.

Innovation

Innovation drives Inspired Entertainment's growth strategy, focusing on developing advanced gaming solutions and technologies. The company has introduced several new gaming products in 2024, contributing to a revenue increase in its Interactive segment, which saw a 36% growth year-over-year.

In particular, the number of live games available increased to 298, up from 267 in the previous year, showcasing the company's commitment to expanding its product offerings. Furthermore, investment in research and development totaled $28.7 million for the nine months ended September 30, 2024, reflecting its dedication to innovation.

Collaboration

Collaboration is essential to the company's operations, fostering strong partnerships with clients and stakeholders. INSE's collaborative efforts have been instrumental in securing long-term contracts with gaming operators, enhancing its service offerings.

As of September 30, 2024, the company had 172 live customers, a 17.8% increase from the previous year, indicating successful collaboration and client retention strategies. Additionally, the company reported a total revenue of $216.7 million for the nine months, reflecting effective partnerships across its segments.

Excellence

Excellence is a fundamental core value at Inspired Entertainment, driving the company to achieve high standards in service delivery and operational efficiency. The company's gaming segment reported a net operating income of $11.9 million for the third quarter of 2024, demonstrating its commitment to excellence in performance.

Moreover, the reduction in selling, general, and administrative expenses by 14% in the same period illustrates the company's focus on operational excellence. The total capital expenditures also remained controlled, amounting to $28.7 million over the nine-month period.

Accountability

Accountability underpins Inspired Entertainment's corporate culture, ensuring that all employees are responsible for their actions and decisions. The company's financial results reflect its accountability, with a rigorous internal auditing process in place.

For the nine months ended September 30, 2024, INSE recorded a net loss of $0.3 million, emphasizing the importance of accountability in addressing financial challenges. The adherence to debt covenants and compliance with financial reporting requirements further exemplifies the company's commitment to accountability.

Updated on 16 Nov 2024

Resources:

1. 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.
2. 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.