Inspired Entertainment sees record October performance and anticipates continued growth as new game launches drive interactive segment success

OPERATOR - (00:00:00)

Pretty focused shift to having build games that resonate with the North American players. And that's turning out. And, you know, so all the big guys, whether it's DraftKings, FanDuel, BetMGM, Rush Street, are all doing better and better, but it really goes all the way through, you know, Tier 2, Tier 3, lower market. So it's pretty broad based across the business. And like I say, you know, the October numbers were great. You get the advantage of having Halloween. When I mentioned that last week was the single biggest week we've ever had. We had the confluence of payday in the UK, Halloween and the resetting of limits all happened in one week. So that kind of led to pretty phenomenal results. But we obviously, as we go into the fourth quarter, you know, December is historically, you know, one of the biggest, if not the biggest months with all the Christmas games and November, you know, it was also a very good month. So the fourth quarter is shaping up nicely.

UNKNOWN - (00:01:07)

Thank you. And then on the prediction markets, obviously you guys have extremely minimal exposure to, I guess, North American sports betting. We have seen a lot of the publicly traded equities trade off as a result of some competition there. Can you just talk about prediction markets if that, if you believe that affects any of your, your business segments here? Thank you. No, we don't, we don't. We certainly aren't seeing anything, unfortunately. It's because we don't have. The one that it might potentially impact would be virtuals in North America. And as I've said on a number of the calls, we're frustrated by the pace at which we're getting virtual sports in North America. The content, you know, the NBA content, the NFL content is resonating with markets outside of North America. But we're still struggling to get more and more operators in North America launched. So that's really the only part of the business that I would see impacted. We certainly aren't seeing any impact in the interactive space from, you know, prediction markets taking, you know, players away. I think they're, I think they're fairly. Even though the operators obviously try to cross-sell, I think they're fairly separate and distinct players. Thanks, Brooks. Appreciate it and appreciate the slide deck. Okay, Chad, thanks.

OPERATOR - (00:02:38)

Your next question comes from the line of Joshua Nichols of B. Riley Securities.. Please go ahead.

Joshua Nichols - Equity Analyst - (00:02:46)

Yeah, thanks for taking my question and great to see the, the Parks business approaching a sale here in the stock buyback. Sorry if it was already addressed. I joined the call a few minutes late, but I wanted to just talk about the interactive business. Phenomenal Growth that you've been seeing there. Overall, I think it's on pace for something like close to like 50% growth this year. Do you. Do you expect that pace is likely to continue next year? And what are the key kind of drivers that you see that's going to be driving interactive, whether that's like Brazil or expanding your partnerships with some players in the US and things that are in the pipeline for that business?

UNKNOWN - (00:03:29)

Yeah, we sort of addressed it a little bit earlier, but I'm happy to go back through it. Yeah, I mean, look, nine quarters in a row of more than 40% EBITDA growth is, is, you know, eventually the math gets a little bit more challenging. But as I mentioned, you know, the October numbers were great. We expect the fourth quarter to continue, you know, to build on that momentum. The biggest issue for us, which again, I talked about a little bit, is, you know, what our customers are saying is your games are great, your game mechanics are great. We just want more of them. And hence that's why we're investing in the studio, to increase the capacity so that we can get more games out to the market, which I think will hopefully help us sustain the growth levels. There's so much content out there now that you really do have to have the combination of the quality and the quantity. But our game design teams have come up with some really interesting mechanics. We mentioned in the presentation about this persistence game that we're doing called Player Link that's driving increased play. So we got lots of levers that we're pulling and we hope this streak continues.

Joshua Nichols - Equity Analyst - (00:04:47)

Thanks. Last question for me. Virtual Sports, obviously a smaller piece of the business today, but good to see how that business has stabilized over the last couple quarters. You talked about trying to get up and running with some more operators in the US what needs to be done to really get that business back into growth for 2026? And are there a couple larger opportunities that you're kind of optimistic about? When we look beyond just the fourth quarter, but for next year, really?

UNKNOWN - (00:05:17)

Yeah. I mean, so not to put any undue pressure on BetMGM, but they're likely to be the first big operator in North America. So they've gone live with us in Ontario and they're seeing phenomenal results over the last few months. And it's got some regulatory and resource challenges that we're working through with them. But we expect hopefully to go live with them yet this quarter. And I'm hoping that that will be a catalyst for a number of other operators to see that Virtual Sports resonates and works in every other market around the world we've been in and we think it will in North America. So, you know, unfortunately for us, we haven't been able to, frankly, because the operators have lots of priorities that they're working on for their, you know, I Gaming and their sports business and virtual just kind of has slid down their priority list a little bit. But, but I still believe that it will resonate. I still believe we have, you know, licensed content with the NFL, NBA and NHL that will resonate with the North American player base. And once, you know, like I said, it’s doing phenomenally well in Ontario. I think once we get one of the big guys, hopefully bet MGM first live in North America and they do well, I think that will hopefully be a catalyst for the other big operators to put some resources to this because it's not a challenge for us. It's really just a resource issued for the other guys.

Joshua Nichols - Equity Analyst - (00:06:50)

Understood. Thanks for the context. Appreciate it.

UNKNOWN - (00:06:54)

No problem.

OPERATOR - (00:06:57)

And there are no questions. I will now turn the conference back over to Mr. Will for the closing remarks.

Will - (00:07:04)

Thank you, operator. And thanks everyone for joining the call today. I know Sport Radar just started 5 minutes ago, so we probably lost a few of our listeners. But. Just to reiterate where we are, we're feeling very optimistic about the business right now. The rest of this year looks solid and we're pretty confident that as we move through 26 and 27, we can achieve the kind of performance parameters we talked about in the presentation. So thanks again for your support and we look forward to talking to you in a few months. Thanks.

OPERATOR - (00:07:55)

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.