Inspired Entertainment, Inc. (NASDAQ: INSE) Fourth Quarter 2022 Earnings Call Transcript

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Operator: The first comes from the Barry Jonas lineage of Truist Securities. Your line is open.

Barry Jonas: Hi, guys. First of all, congratulations to Brooks, and I guess my first query, I know he’s not giving indications, EBITDA forecasts for the whole year, however, obviously there are a lot of positive things that he highlighted for 2023. So, you am driving completely, can you give more details on how you see the expansion trajectory of consolidated EBITDA this year and then, also the reflections on seasonality?Thank you.

Lorne Weil: Well, Barry, if we had a transparent attitude about how all the positives combine to produce consolidated EBITDA for 2023, I think it would probably be taken as an indication. So I don’t think we can do that, but I think we’re satisfied with the consensus numbers that are going to be on the market through 2023, and we’re going to do everything we can to beat the consensus. That’s all I can say.

Barry Jonas: Well, that’s helpful. And it is a very useful color in the Dominican lottery and more particularly iLottery. I guess when you think about the prospect of content and platform expansion, are you curious to form an opinion about legalizing new jurisdictions or even more about pursuing some kind of attack on existing markets for competitive gain?

Lorne Weil: No one knows what will happen with the new iLottery jurisdictions. I think where we are now, I think we’re way behind where everyone expected us to be at this stage. There are only a handful of lotteries in North America that iLottery has. There are a lot of them that we know (ph) and they are racing to make that happen, however, I think it’s actually very unlikely to say right now what will happen for sure. In terms of our own strategy, I think we’re focusing on our short-term content strategy, because there are actually a lot of opportunities, at least in North America, for our platform. I don’t think any of the existing lottery operators are interested. In the change of platform providers, however, I believe that as the industry grows, more and more profits will also come from content.

But I also have to say, Barry, that we are in several jurisdictions as opportunities for both the platform and content outside the US. U. S. So, DR in this regard is a demo site for us, because there are dozens of lotteries. in the world, especially in Europe and Latin America, those would be opportunities for us.

Brooks Pierce: Yes, Lorne, and let me upload one last thing, and thank you Barry, for. . . Well, thank you. the aspect of iLottery is that it gives us this opportunity, as Lorne mentioned, in the Dominican Republic to refine the product and check if it’s the content, if it’s the platform. So frankly, the fact that it’s happening a little bit slower, I think at the end of the day, can give us an edge, as we expand our product and content in a market like DR, where we can practically verify everything. So, it’s not the worst thing in the world to make things happen a little slower, at least from our point of view.

Lorne Weil: Yes, that’s a very smart point. Thank you Brooks.

Barry Jonas: I get it. Well, excited for the day of Dominican analysts that this happens. Thank you so much for all the colors, guys. I am aware that.

Operator: And the next one comes from B. Riley’s David Bain line. Your line is open.

David Bain: Génial. Merci. Je I reiterate Barry’s comment about Analysts’ Day.

Brooks Pierce: I imagine I was going to ask for a week of analysts.

David Bain: Yes, it still sounds mieux. Parfait. Eh good, yes, then iLottery is very useful, so, I mean apparently, Virtual Sports’ apparent expansion engine here, I mean unique, rare for me anyway, by comparison. Can you give us the configuration for this year compared to last year?I mean, how do we see potential expansion in the next few years, given where we are today?If you can get an overview, that will come in handy. Is it in the middle of the circular or is it still a young product?

Stewart Baker: Do you need to check that, Brooks?

Earnings Call TranscriptNASDAQ:INSEQ4 2022Yahoo Finance

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