Inspired Entertainment Inc (INSE) 2024 Q1 法說會逐字稿

Good morning, everyone, and welcome to the Inspired Entertainment first-quarter 2024 conference call.

大家早安，歡迎參加 Inspired Entertainment 2024 年第一季電話會議。

(Operator Instructions) Please note today's event is being recorded.

（操作員說明）請注意今天的活動正在錄製中。

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.

請參閱該公司 2024 年第一季財報新聞稿中的安全港聲明，該聲明也可在該公司網站 www.inseinc.com 的投資者部分取得。該安全港聲明也適用於今天的電話會議，因為公司管理層將做出某些聲明，根據證券法和美國證券交易委員會的規則，這些聲明將被視為前瞻性聲明。

These statements are based on management's current expectations or beliefs and are subject to risks, uncertainties and changes in circumstances.

這些陳述是基於管理層目前的預期或信念，並受到風險、不確定性和情況變化的影響。

In addition, please note that the company will discuss both GAAP and non-GAAP financial measures.

此外，請注意，公司將討論 GAAP 和非 GAAP 財務指標。

A reconciliation is included in the earnings press release.

收益新聞稿中包含了調節表。

With that completed, I would now like to turn the conference call over to Lorne Weil, the company's Executive Chairman.

會議結束後，我現在想將電話會議轉交給公司執行主席洛恩·韋爾 (Lorne Weil)。

Mr. Weil, please go ahead.

韋爾先生，請繼續。

Thank you, operator.

謝謝你，接線生。

Good morning, everybody, and thank you for joining our first-quarter conference call.

大家早安，感謝您參加我們的第一季電話會議。

Here with me are CEO, Brooks Pierce who will provide prepared remarks in a few moments as well as Marilyn Jentzen and Eric Carrera who are available for Q&A.

和我在一起的還有執行長布魯克斯·皮爾斯（Brooks Pierce），他將在稍後發表準備好的講話，以及瑪麗蓮·詹特森（Marilyn Jentzen）和埃里克·卡雷拉（Eric Carrera），他們可以接受問答。

As we had more or less previewed a few weeks ago in our year-end conference call, the first quarter was, to put it mildly, a metaphor for Murphy's law.

正如我們幾週前在年終電話會議中或多或少預覽的那樣，溫和地說，第一季是墨菲定律的隱喻。

To date, we've spent well in excess of $10 million in accounting, audit, and legal expenses in connection with the accounting restatement, much of which was below the line, but a meaningful proportion impacted EBITDA, and of course, 100% of that impacted cash.

迄今為止，我們在與會計重述相關的會計、審計和法律費用上花費了遠超過 1000 萬美元，其中大部分都低於預算線，但很大一部分影響了 EBITDA，當然，100%這影響了現金。

We had other significant one-time expenses in the first quarter.

第一季我們還有其他重大的一次性支出。

And although our equipment sales backlog is currently at record levels, delivery dates have moved into the second half of the year.

儘管我們的設備銷售積壓目前處於創紀錄水平，但交貨日期已移至今年下半年。

Similarly, during the quarter, we continue to spend significantly for recurring revenue growth initiatives, which will have some impact in the second quarter, but which we are confident will continue to grow strongly throughout the year.

同樣，在本季度，我們繼續在經常性收入成長舉措上投入大量資金，這將在第二季度產生一些影響，但我們有信心全年將繼續強勁增長。

But before elaborating further on these and other developments, let me preface these remarks by saying that we are anticipating a dramatic improvement in EBITDA in the second quarter.

但在進一步闡述這些和其他進展之前，請容許我先說一下，我們預計第二季 EBITDA 將大幅改善。

The interactive business recorded another very strong quarter in Q1, and we see no reason for this growth to decelerate especially given the opening of important new markets and the steady introduction of new products.

互動業務在第一季又錄得非常強勁的季度表現，我們認為這種成長沒有理由放緩，特別是考慮到重要新市場的開放和新產品的穩定推出。

The pullback in our virtuals business that we have been experiencing has run its course, and we have begun to see a resumption of growth that will be driven further by the new NBA and NFL games as well as new markets.

我們所經歷的虛擬業務的回落已經結束，我們已經開始看到成長的恢復，新的 NBA 和 NFL 比賽以及新市場將進一步推動成長。

In the hybrid dealer area, we're live with one product, the game show wheel, with a single customer in a single market.

在混合經銷商領域，我們使用一種產品，即遊戲展示輪，在單一市場中擁有單一客戶。

And we're seeing strong, steady growth trajectory, which augurs well for the eventual expansion into a broader customer base in many more markets around the world.

我們看到了強勁、穩定的成長軌跡，這預示著最終將擴展到全球更多市場的更廣泛的客戶群。

Very importantly, from a product point of view, we will be launching the hybrid dealer roulette game in the summer.

非常重要的是，從產品角度來看，我們將在夏季推出混合荷官輪盤遊戲。

Roulette is by a significant margin, the largest category in the live dealer sector and one of the very largest in the entire online gaming industry.

輪盤賭是真人荷官領域最大的類別，也是整個線上遊戲產業最大的類別之一。

And lastly, we're putting the finishing touches on some Vantage-driven growth initiatives in our gaming business which we believe will add significantly to EBITDA certainly beginning in 2025, again, with some possible positive impact in the fourth quarter of this year.

最後，我們正在對遊戲業務中一些 Vantage 驅動的成長計劃進行收尾工作，我們相信這些計劃肯定會從 2025 年開始顯著增加 EBITDA，並可能在今年第四季度產生一些積極影響。

In our last conference call, Brooks referenced our plan to generate significant margin expansion through an operational restructuring that is currently underway and which will generate several points of company-wide margin improvement, again, mostly impacting 2025 and beyond, but without the possibility of some impact yet in Q4 of this year.

在我們上次的電話會議中，布魯克斯提到了我們的計劃，即透過目前正在進行的營運重組來顯著擴大利潤率，這將再次在全公司範圍內帶來幾個點的利潤率改善，主要影響2025 年及以後，但不可能有一些改善。

In a nutshell, our plan is to separate the holiday park business, which is essentially a family entertainment-oriented business driven largely by amusement equipment, think Dave & Buster's.

簡而言之，我們的計劃是分離假日公園業務，戴夫和巴斯特認為，假日公園業務本質上是一個以家庭娛樂為導向的業務，主要由遊樂設備驅動。

From the other parts of the leisure business from the pub, motorway service, arcade and bingo businesses whose business models are identical to that of our gaming business but addressing different retail environments.

休閒業務的其他部分，如酒吧、高速公路服務、街機和賓果業務，其業務模式與我們的遊戲業務相同，但針對不同的零售環境。

So the functional elements of product engineering, manufacturing, platform and content development, server hosting and field service operations overlap almost perfectly providing potentially huge benefits to consolidation.

因此，產品工程、製造、平台和內容開發、伺服器託管和現場服務營運的功能要素幾乎完全重疊，為整合提供了潛在的巨大好處。

As we complete this consolidation, we can then begin to consider strategic alternatives for the holiday park business.

當我們完成整合後，我們就可以開始考慮假日公園業務的策略替代方案。

In light of the foregoing, we're confident, as I said a moment ago, that we're seeing a very significant increase in EBITDA from the first to the second quarter of this year perhaps on the order of, give or take, 50% sequential increase that will give us a strong platform from which to move into the back half of the year.

鑑於上述情況，正如我剛才所說，我們有信心看到今年第一季到第二季的 EBITDA 大幅成長，幅度可能約為 50 % 的環比成長將為我們進入今年下半年提供一個強大的平台。

And with that, I'll hand it over to Brooks.

有了這個，我會把它交給布魯克斯。

Okay.

好的。

Thank you, Lorne.

謝謝你，洛恩。

And I'll try to expand on several of the topics you covered in your remarks and relay our progress on some of the key initiatives we talked about in our year-end call ironically only a month or so ago.

我將嘗試擴展您在演講中涉及的幾個主題，並轉述我們在大約一個月前的年終電話會議中討論的一些關鍵舉措的進展。

The combined digital businesses, interactive and virtual sports, contributed more than 60% of our EBITDA in the first quarter but are relatively flat compared to prior year.

第一季度，數位業務、互動和虛擬體育業務合計貢獻了我們 EBITDA 的 60% 以上，但與去年同期相比相對持平。

But with the mix changing to more contribution from the interactive segment but with most of the key growth drivers for virtual sports just starting to launch and with plans to accelerate throughout the year.

但隨著互動領域的貢獻越來越大，虛擬體育的大部分關鍵成長動力才剛開始啟動，並計劃在全年加速成長。

The minimum -- the momentum we have been discussing in the interactive segment continued through the first quarter with revenue being up 31% year over year on a functional currency basis and EBITDA being up 38% on the same basis.

最低限度－我們在互動領域討論的勢頭在第一季度持續存在，按功能貨幣計算的收入同比增長 31%，EBITDA 同比增長 38%。

Even with these phenomenal growth rates, the numbers continue to grow with April being our second largest month on record and just last week, the highest revenue week we have ever had.

儘管成長率如此驚人，但數字仍在繼續增長，四月份是我們有史以來第二大月份，而上周也是我們有史以來收入最高的一周。

This is a testimony to the strategy and execution of the interactive team including our game design teams as well as the commercial teams and is very broad-based across multiple tiers of customers in multiple geographies.

這是對互動團隊（包括我們的遊戲設計團隊和商業團隊）的策略和執行力的證明，並且在多個地區的多層客戶中具有非常廣泛的基礎。

Just for an example, we grew our market share in the UK in 2023 by 40% and then are at our highest levels ever.

舉個例子，我們在英國的市佔率到 2023 年成長了 40%，然後達到了有史以來的最高水準。

We're rapidly expanding in more geographies, particularly in Latin America, as we've discussed in the past and are confident of this part of the business to continue to thrive.

正如我們過去所討論的那樣，我們正在更多地區迅速擴張，特別是在拉丁美洲，並對這部分業務繼續蓬勃發展充滿信心。

We're also excited about the early momentum for the hybrid dealer product in New Jersey, and we'll look to expand to our second state in the second quarter and to launch our Roulette game by the end of second quarter, the beginning of the third quarter, and then to deliver the first game to our next customer, Caesars.

我們也對新澤西州混合荷官產品的早期勢頭感到興奮，我們將尋求在第二季度擴展到第二個州，並在第二季度末（即今年年初）推出我們的輪盤遊戲。 ，然後將第一款遊戲交付給我們的下一個客戶凱撒。

As we have discussed over the last few quarters on virtual sports, we've been impacted by a key customer modifying their player base to focus on players with sustainable value for them, and this has had an impact on our business.

正如我們在過去幾個季度討論的虛擬體育一樣，我們受到了一個關鍵客戶的影響，他們修改了他們的玩家基礎，專注於對他們來說具有可持續價值的玩家，這對我們的業務產生了影響。

There is a silver lining here, however, as we've seen the stabilization of the virtuals business at these levels for the last few quarters and saw the remainder of our online virtuals business grew 27% year over year.

然而，這裡也有一線希望，因為我們看到過去幾個季度虛擬業務在這些水平上保持穩定，並且我們的線上虛擬業務的其餘部分同比增長了 27%。

We just went live today, actually yesterday, in OPAP with our NBA licensed archived footage product with strong marketing support, and we look forward to its success as OPAP has proven to be a very strong retailer with virtuals growth in their retail footprint growing more than 20% last year.

今天，實際上是昨天，我們剛剛在OPAP 上線了我們的NBA 授權存檔錄像產品，並提供強大的營銷支持，我們期待它的成功，因為OPAP 已被證明是一家非常強大的零售商，其零售足跡的虛擬成長超過去年20%。

We continue to roll out our latest NFL game to more customers, and we're seeing growth there.

我們繼續向更多客戶推出最新的 NFL 遊戲，並且我們看到了客戶數量的成長。

But I just saw the first few clips from our latest motion capture football shoot, and it's honestly amazing how much this technology has improved over the last few years.

但我剛剛看到了我們最新的動作捕捉足球拍攝的前幾個片段，老實說，這項技術在過去幾年中取得瞭如此大的進步，真是令人驚訝。

We did full motion capture shoots for both football and hockey and both products will be live later this year, and they'll set the standard from a visual perspective in the virtual sports business.

我們為足球和曲棍球進行了完整的動作捕捉拍攝，這兩種產品都將於今年晚些時候上線，它們將從視覺角度為虛擬體育業務樹立標準。

And as I said, we're confident this will drive player engagement and revenue and EBITDA growth for Inspired and our operator customers.

正如我所說，我們相信這將推動 Inspired 和我們的營運商客戶的玩家參與度、收入和 EBITDA 成長。

Gaming segment headwinds are primarily due to a couple of key items.

遊戲領域的逆風主要是由於幾個關鍵因素造成的。

First is the loss of a service contract for SSBTs that we were providing to a customer that has decided to bring that service in-house.

首先是我們向決定將該服務引入內部的客戶提供的 SSBT 服務合約遺失。

Second factor is due to a delayed rollout of our Vantage cabinet with a key customer who's not reaping the benefits yet of the double-digit growth we are seeing with our other customers in the sector.

第二個因素是由於我們的 Vantage 機櫃的推出推遲，而我們的一個關鍵客戶尚未從該行業其他客戶的兩位數成長中獲益。

We're hopeful that this will be mitigated by year-end and will be a significant EBITDA contributor starting in Q4 this year, but fully realized in 2025.

我們希望這種情況能夠在年底前得到緩解，並從今年第四季開始成為 EBITDA 的重要貢獻者，並在 2025 年完全實現。

We announced the sale of 720 Valor terminals to WCLC that we will deliver by the end of the year, which will be a big driver of the improvement in gaming performance by year-end, and we are seeing improved performance and good take-up on our game subscriptions to our Illinois customers.

我們宣布向 WCLC 出售 720 台 Valor 終端，我們將在年底前交付，這將是年底遊戲性能改善的一大推動力，我們看到性能的改善和良好的使用率我們向伊利諾伊州客戶提供的遊戲訂閱。

Lastly, our backlog of equipment sales in the AGC segment in the UK is robust and will help drive improvement in Q2 and throughout the rest of the year.

最後，我們在英國 AGC 部門的設備銷售積壓情況強勁，將有助於推動第二季和今年剩餘時間的改善。

Q1 is the seasonally lowest quarter for the holiday park segment, and we are gearing up to growing that part of the leisure business in Q2 and peaking by Q3.

第一季是假日公園細分市場季節性最低的季度，我們正準備在第二季度實現這部分休閒業務的成長，並在第三季度達到頂峰。

Pubs business continues to perform well with Vantage cabinet.

Vantage 櫥櫃的酒吧業務繼續表現良好。

And as most of our revenue as part of leisure is in weekly rentals.

我們的休閒收入大部分來自每週的租金。

We are aggressively installing Vantage cabinets in Q2 to reach our targeted installed base as we move into the second half of the year.

我們在第二季度積極安裝 Vantage 機櫃，以在進入下半年時達到我們的目標安裝基礎。

Our MSA business, our motorway services has been challenged by extensive road works in the U.K., impacting footfall in that part of the business, but we hope to see that improve also by the second half of the year.

我們的 MSA 業務和高速公路服務受到了英國大規模道路工程的挑戰，影響了該部分業務的客流量，但我們希望看到這一情況到今年下半年也能有所改善。

And finally, as Lorne mentioned, we're laser-focused on our cost reduction plan to reach our target of 40% EBITDA margins, and a number of these plans are being implemented right now but the benefit of those is not expected to contribute until later in the year and will be offset to some degree by the cost to implement these changes, but we are confident that these necessary steps will be actioned and contribute to improved margins and cash flow in the second half of the year.

最後，正如 Lorne 所提到的，我們專注於降低成本計劃，以實現 40% EBITDA 利潤率的目標，其中許多計劃目前正在實施，但預計這些計劃的效益要到 2020 年才會顯現出來。時候，實施這些變革的成本將在一定程度上抵消，但我們相信，這些必要的步驟將得到實施，並有助於提高下半年的利潤率和現金流。

And with that, I'll hand it back over to Lorne for Q&A.

然後，我會將其交還給洛恩進行問答。

Thanks, Brooks.

謝謝，布魯克斯。

That was an excellent summary.

這是一個非常好的總結。

Operator, if you can open the program now to Q&A, please.

接線員，請您現在打開程式進行問答。

(Operator Instructions) Barry Jonas, Truist Securities.

（操作員指令）Barry Jonas，Truist Securities。

I wanted to start on the hybrid dealer.

我想從混合經銷商開始。

Is it possible maybe to give any more color on early performance.

是否有可能為早期的表現提供更多的色彩。

And I'm also wondering if you've seen or been communicated, any comparisons you can share relative to the live dealer product.

我還想知道您是否已經看到或被告知過，您可以分享與真人荷官產品相關的任何比較。

Thank you.

謝謝。

Thank you, Barry.

謝謝你，巴里。

Yes.

是的。

So as Lorne mentioned, and I think I mentioned in our remarks, it is still relatively early days.

正如洛恩所提到的，我想我在我們的演講中也提到過，現在還處於相對早期的階段。

It's one product in one market in New Jersey.

這是新澤西州一個市場的一種產品。

But what we've seen is a pretty steady growth with some spikes of some big plays where we have some days where we have some very big players engaged.

但我們看到的是相當穩定的成長，一些大型遊戲出現了一些高峰，有些時候我們有一些非常大的玩家參與。

And that's really what we're looking for is the number of players and the stickiness of the product.

我們真正要尋找的是玩家數量和產品的黏性。

But as Lorne also mentioned and you would know from obviously, following the industry like you do, Roulette is probably a much bigger driver of the game performance and so I think we'll hold off on talking about any comps until we have a little bit more data, both in terms of having more than one market in New Jersey.

但正如洛恩也提到的，你顯然會知道，像你一樣關注這個行業，輪盤賭可能是遊戲性能的一個更大的驅動因素，所以我認為我們會推遲談論任何比較，直到我們有一點更多數據，無論是在新澤西州擁有多個市場方面。

Michigan is hopefully the market that will go next and then obviously, adding the Roulette game.

密西根州有望成為下一個市場，然後顯然會增加輪盤遊戲。

So as we talk in our next call, I guess, in August, maybe we can give some more on that point.

因此，我想，當我們在八月的下一次電話會議中討論時，也許我們可以就這一點提供更多資訊。

Okay.

好的。

Great.

偉大的。

We'll definitely follow up then.

到時候我們一定會跟進的。

And then, Lorne, do you really appreciate the comments on sort of the sequential increase you expect Q2 and Q1.

然後，洛恩，您真的很欣賞您對第二季和第一季預期的連續成長的評論嗎？

But just curious, last quarter, you talked about being comfortable with full year consensus.

但奇怪的是，上個季度，您談到了對全年共識感到滿意。

Do you still feel the same way at this point?

此時此刻你還有同樣的感覺嗎？

Let me answer that in a slightly different way, and then you can draw your reference from it.

讓我以稍微不同的方式回答這個問題，然後你可以從中學習。

So we're pretty comfortable that, as I said a second ago, we'll see a 50% increase conceivably more from the first quarter to the second quarter.

因此，我們非常滿意，正如我剛才所說，我們將看到第一季到第二季的 50% 的成長，這一點是可以想像的。

We know from experience that the third quarter is typically the seasonally peak quarter.

根據經驗，我們知道第三季通常是季節性高峰季度。

So there's no reason to think that the third quarter won't be better than the second quarter.

因此，沒有理由認為第三季不會比第二季更好。

Generally, the fourth quarter is not that strong, but as I mentioned, as Brooks mentioned, we have a tremendous and growing backlog of equipment sales that will occur largely in the fourth quarter.

一般來說，第四季度的表現不是那麼強勁，但正如我所提到的，正如布魯克斯所提到的，我們有大量且不斷增長的設備銷售積壓，這些積壓將主要發生在第四季度。

So I think if you think about it in those terms and you put all those pieces together, I think you can get to where we're still pretty comfortable with $1 million or $2 million up or down from where the consensus is.

所以我認為，如果你從這些方面考慮，並將所有這些部分放在一起，我認為你可以達到我們仍然對比共識水平增加或減少 100 萬美元或 200 萬美元感到滿意的水平。

Great.

偉大的。

All right.

好的。

Thank you so much.

太感謝了。

Appreciate it.

欣賞它。

Ryan Sigdahl, Craig-Hallum Capital Group.

瑞安‧西格達爾 (Ryan Sigdahl)，克雷格-哈勒姆資本集團。

Want to start on Virtual Sports.

想開始虛擬運動。

So EBITDA up slightly sequentially, revenue down slightly sequentially.

因此，EBITDA 環比小幅上升，收入環比小幅下降。

I guess any structural change to the longer term were kind of historical margins you've seen from that segment?

我想從長遠來看，任何結構性變化都是您從該領域看到的歷史利潤？

And then can you talk through any trends you've seen thus far in Q2?

那麼您能談談到目前為止您在第二季度看到的任何趨勢嗎？

Yes.

是的。

So Ryan, as you know, we're kind of in the very early days, in fact, with the NBA day 2 of a product that we think is going to have very wide appeal across the business, not just in North America but throughout the world.

所以瑞安，正如你所知，事實上，我們在 NBA 第二天推出了一款產品，我們認為該產品將在整個行業中產生廣泛的吸引力，不僅在北美，而且在整個行業。

So the drivers that we see for the business going forward is, obviously, the NBA and the NFL.

因此，我們認為未來業務的驅動力顯然是 NBA 和 NFL。

We'll have the new hockey game coming out as well in the fall and then some new geographies.

我們還將在秋季推出新的曲棍球比賽，然後推出一些新的地區。

Brazil obviously is lining up to hopefully happen this year.

巴西顯然正在為今年的情況做好準備。

So we're expecting to see growth return in the virtual sports business.

因此，我們期望看到虛擬體育業務的成長回報。

In terms of the second quarter thus far, with whatever we are six weeks, five weeks into the quarter, it's pretty steady state.

就目前的第二季而言，無論本季已經過去六週、五週，情況都相當穩定。

Last week happened to be a very good week.

上週碰巧是非常好的一周。

But we'll kind of report on that when we can.

但我們會盡可能地對此進行報告。

But we're not seeing anything that's changed dramatically so far in the second quarter.

但到目前為止，我們在第二季度沒有看到任何顯著變化。

And then just a follow-up kind of as you think about other markets you mentioned Brazil, but we've seen recent launches with an operator in Spain with ComeOn Group in Scandinavia.

然後，當你想到你提到的巴西其他市場時，這只是一種後續行動，但我們最近看到西班牙的一家營運商與斯堪的納維亞半島的 ComeOn Group 合作推出了這項服務。

But can you talk through kind of maybe not as talked about, but various markets around the world and the potential for virtual sports there.

但您能否談談世界各地的各個市場以及虛擬體育的潛力？

Yes.

是的。

I mean I think as you -- again, as you would know, the predominant product in Virtual Sports is soccer or football depending on where you're speaking.

我的意思是，我認為，正如您所知道的那樣，虛擬體育的主要產品是足球或橄欖球，這取決於您所說的地方。

And particularly in Latin America, with Brazil, obviously, because of the size of the population and because of the fact that they're going to a regulated market, and is a soccer crazy market.

尤其是在拉丁美洲，例如巴西，顯然是因為人口規模，而且因為他們將進入一個受監管的市場，而且是一個瘋狂的足球市場。

That's the one that we think has the most hope.

這是我們認為最有希望的。

But there's no doubt the Perus, the Columbias of the world where you see iGaming expansion in some of these markets, Virtual Sports should come along as well.

但毫無疑問，在秘魯、哥倫比亞，你會看到 iGaming 在其中一些市場的擴張，虛擬運動也應該隨之而來。

So we're kind of bullish on all of that.

所以我們對這一切都持樂觀態度。

And clearly, North America, we still have to -- I think I had mentioned it on the call last time.

顯然，北美，我們仍然必須——我想我在上次電話會議上已經提到過這一點。

This is the year for us to kind of put up or shut up in North America.

今年是我們在北美要么忍受要么閉嘴的一年。

And so we're seeing some early data coming out of Ontario with a big customer that's helping us feel confident that as we get to more and more customers in North America that this will appeal to players.

因此，我們看到一些來自安大略省的大客戶的早期數據，這幫助我們充滿信心，隨著我們在北美獲得越來越多的客戶，這將吸引玩家。

Our next question comes from the line of Jordan Bender from Citizens JMP.

我們的下一個問題來自 Citizens JMP 的 Jordan Bender。

Please go ahead.

請繼續。

Good morning, everyone.

大家，早安。

I want to talk about the consolidation that we're seeing here in the US in the slot supplier market. typically, that could bring some disruption when we do go through consolidation cycles like this.

我想談談我們在美國看到的老虎機供應商市場的整合。通常，當我們確實經歷這樣的整合週期時，這可能會帶來一些幹擾。

Does this bring opportunity for you guys to maybe expand or gain some market share here in the US.

這是否為你們帶來了擴大或獲得美國市場份額的機會？

Yes.

是的。

I mean, I think certainly -- I mean, we're not in some of the space where the disruption is happening.

我的意思是，我認為當然 - 我的意思是，我們並不處於正在發生破壞的某些領域。

So we're not in Class II or Class III or HHR but that's not to say that we couldn't be because we certainly have the skill set and the technology to be able to do that.

因此，我們不屬於 II 類、III 類或 HHR，但這並不是說我們不能，因為我們當然擁有能夠做到這一點的技能和技術。

I guess the way I would look at it Jordan, is the validation that we got from WCLC in that two years ago, they took a leap of faith going with us as a new supplier and then subsequently two years later, once again gave us 100% of their capital, which to me is an affirmation that our product is working in the VLT markets.

我想我看待喬丹的方式是兩年前我們從 WCLC 得到的驗證，他們信心十足地選擇我們作為新供應商，然後兩年後，再次給了我們 100他們資本的%，對我來說，這是對我們的產品在VLT 市場上發揮作用的肯定。

So that's where our focus is, all the regulated G2S, VLT markets.

這就是我們關注的重點，所有受監管的 G2S、VLT 市場。

But do we think that the content that we have would resonate in those other markets?

但我們認為我們擁有的內容會在其他市場產生共鳴嗎？

Sure.

當然。

No doubt.

毫無疑問。

And then on the follow-up, your margin goal of 40%.

然後在後續行動中，你的利潤目標是 40%。

Now that those processes are kind of underway, can you just talk about how you get there between -- is this more of a revenue growth mix are on the line?

現在這些流程已經開始進行，您能談談您是如何實現這一目標的嗎？

Or is it more just kind of through some of your cost controls?

還是透過一些成本控制來實現？

Yes, I mean, I think it's both.

是的，我的意思是，我認為兩者都是。

I think it's -- there's some actions that we have to take and we probably shouldn't comment on at this point.

我認為我們必須採取一些行動，但目前我們可能不應該發表評論。

But we think that there's ways to increase the efficiency and improve kind of as Lorne alluded in his remarks, is there's a very big functional overlap.

但我們認為，正如洛恩在他的演講中提到的那樣，有一些方法可以提高效率和改進，即存在很大的功能重疊。

And so that's something that we'll obviously try and accelerate and take the benefit of that.

因此，我們顯然會嘗試加速並從中受益。

It's come out in the press in the UK.

它已在英國媒體上發表。

publicly that we're going to fully outsource manufacturing so that's yet another improvement that we'll see going forward.

公開表示我們將完全外包製造，這是我們未來將看到的另一項改進。

So a number of cost initiatives.

所以採取了一些成本措施。

And then on the revenue driver side, it is -- as you'll know, we obviously talk about the digital businesses a lot because they're the fastest growing, highest margin part of the business.

然後在收入驅動因素方面，如您所知，我們顯然經常談論數位業務，因為它們是業務中成長最快、利潤率最高的部分。

And as that continues to expand, it's just going to expand our margins.

隨著這規模的不斷擴大，我們的利潤率也將不斷擴大。

But we do, as I think Lorne mentioned in his remarks, on the gaming side, we have a couple of initiatives that we think will both increase and drive the revenue, but also at a higher margin.

但我們確實如此，正如我認為洛恩在他的演講中提到的那樣，在遊戲方面，我們有一些舉措，我們認為這些舉措既會增加並推動收入，但也會帶來更高的利潤。

So you take the totality of all of those things, and that's why we're comfortable in targeting these 40% margins.

因此，考慮所有這些因素的總和，這就是為什麼我們願意以 40% 的利潤率為目標。

But as these things always do, they just take a little bit of time.

但正如這些事情總是發生的那樣，它們只是需要一點時間。

David Bain, B. Riley Securities.

大衛‧貝恩 (David Bain)，B. 萊利證券 (Riley Securities)。

Great.

偉大的。

Thank you.

謝謝。

Good morning, Lorne.

早安，洛恩。

Good morning, Brooks.

早上好，布魯克斯。

I was hoping we can go back to what you were just discussing, Brooks.

我希望我們能回到你剛才討論的話題，布魯克斯。

Obviously, you discussed some changes in leisure and potentially beyond that with -- you seem to indicate that the holiday park segment of that was less synergistic than the rest.

顯然，您討論了休閒方面的一些變化，並可能超越這一點——您似乎表明，假日公園部分的協同作用不如其他部分。

And I guess I'm trying to get an idea of what is revenue and EBITDA from that particular segment within leisure.

我想我正試圖了解休閒領域特定細分市場的收入和 EBITDA 是多少。

I have to look at our accounting experts.

我必須看看我們的會計專家。

I don't know that we break that out.

我不知道我們能否打破這個局面。

We break that revenue in our -- we break out the revenue from holiday parks in our KPIs, and that's probably the most level we're willing to sort of be concerned at this stage.

我們在 KPI 中細分了假日公園的收入，這可能是我們現階段最願意關注的水平。

But can I assume it's lower margin?

但我可以假設它的利潤率較低嗎？

And obviously, it's very seasonal, correct?

顯然，這是非常季節性的，對嗎？

Much lower margin.

利潤率低得多。

Okay.

好的。

Thank you.

謝謝。

That's helpful.

這很有幫助。

And then I guess back to the M&A, what Jordan asked somewhat about, with regard to the announcement yesterday that I'm sure you've digested by now.

然後我想回到併購，喬丹問了一些問題，關於昨天的公告，我相信你現在已經消化了。

Any kind of new thoughts around M&A?

關於併購有什麼新的想法嗎？

And are we seeing different private M&A multiples than we're seeing in the public?

我們看到的私人併購倍數是否與公開市場不同？

Well, I think the AGS announcement, which was -- I think it was a 40% premium over the recent stock price and the multiple was at least, I think, a turn and a half or two turns higher than where they have been.

嗯，我認為 AGS 的公告——我認為這比最近的股價溢價了 40%，而且我認為該市盈率至少比之前的水平高出一個半或兩個回合。

So that's at least one data point.

所以這至少是一個數據點。

There are other instances, the most significant was the acquisition of -- which I think is probably finally about to close.

還有其他例子，最重要的是收購——我認為這可能最終即將結束。

Yes, it has closed of Aristocrat buying Neo and that was for 15x EBITDA.

是的，Aristocrat 已經結束了以 15 倍 EBITDA 收購 Neo 的交易。

Now the -- which is a significantly different multiple, obviously, than what AGS is getting bought for, but the difference there is that Neo is essentially a 100% digital business.

顯然，這與 AGS 的收購價格有很大不同，但區別在於 Neo 本質上是 100% 的數位業務。

And I think AGS is a terrific company, as you know, but I think they're probably more like 90% retail equipment business.

如你所知，我認為 AGS 是一家很棒的公司，但我認為他們 90% 的業務可能更像是零售設備業務。

So that would account for the difference in multiples between those two.

這樣就可以解釋兩者之間倍數的差異。

But yes, I mean, I think generally particularly -- I mean, there hasn't been that much in the retail business like the AGS deal, but there -- over the last couple of years, there have been several acquisitions or M&A in the digital area like the Neo and those multiples have tended to be generally double what those companies were when they were independent companies.

但是，是的，我的意思是，我認為一般來說，特別是——我的意思是，零售業務中並沒有像AGS 交易這樣的交易，但是——在過去的幾年裡，在零售業中發生了幾起收購或併購。

So I think this is sort of the general state of affairs.

所以我認為這就是一般情況。

Just for what it's worth, I think the -- my own view is the acquisition or the going private of AGS is very clever, and I think the buyer is going to have a very, very successful investment.

就其價值而言，我認為——我自己的觀點是，收購或私有化 AGS 是非常明智的，而且我認為買方將獲得非常非常成功的投資。

(Operator Instructions) Chad Beynon, Macquarie.

（操作員說明）Chad Beynon，麥格理。

On the Interactive business, you talked about some nice market share gains in one of the biggest markets in the world, the UK&I.

關於互動業務，您談到了世界上最大的市場之一英國和愛爾蘭的一些不錯的市場份額增長。

Are you able to tell us kind of where your market share stands or maybe just kind of talk about opportunities to grow that even more in the UK?

您能否告訴我們您的市場份額處於什麼位置，或者只是談談在英國進一步增長市場份額的機會？

And then secondly, I know you talked about this last month.

其次，我知道你上個月談到這個問題。

Any change in terms of how you're seeing the white paper implementations in Interactive.

您在 Interactive 中查看白皮書實施方式的任何變更。

I know you talked about it in virtuals but any change in Interactive?

我知道您在虛擬環境中談到這一點，但是互動方面有什麼變化嗎？

Yes.

是的。

Well, since maybe I'll answer this your question in kind of two parts.

好吧，因為也許我會分兩部分來回答你的問題。

Yes, we -- it's kind of the first time we've really talked about our market share in the U.K. because it's kind of public information, we can track that.

是的，我們——這是我們第一次真正談論我們在英國的市場份額，因為這是一種公共訊息，我們可以追蹤它。

So the fact that we're at our highest levels ever and have grown pretty substantially over the last few years, but still we're roughly 7%.

事實上，我們正​​處於有史以來的最高水平，並且在過去幾年中增長相當大，但仍然約為 7%。

So there's, again, continued headroom for us to grow I think interestingly, there's not as much public data in North America, but we think our market share in North America is somewhere between 2% and 3%.

因此，我們還有持續的成長空間，我認為有趣的是，北美沒有那麼多的公開數據，但我們認為我們在北美的市佔率在 2% 到 3% 之間。

So for us, being able to consistently provide good games on time to increase our market share in North America is a huge opportunity.

所以對我們來說，能夠持續按時提供好遊戲來增加我們在北美的市場份額是一個巨大的機會。

And as you can imagine, the increased market share is almost kind of 100% margin falling to the bottom line.

正如你可以想像的那樣，市場份額的增加幾乎相當於 100% 的利潤率跌至底線。

So clearly, we're focused on that market as well, and we've talked in the past about having a dedicated studio to the North American business, which we'll comment on as we develop.

很明顯，我們也專注於該市場，我們過去曾討論過要為北美業務建立一個專門的工作室，我們將在開發時對此進行評論。

So even though the business is growing at kind of consistently 30% year-over-year, we still think we have plenty of headroom just because we have such a small market share.

因此，儘管業務每年持續以 30% 的速度成長，但我們仍然認為我們有足夠的發展空間，因為我們的市場份額如此之小。

In terms of the white paper, probably the single biggest thing in the white paper is the allotment of B3 machines that's still yet to be determined.

就白皮書而言，白皮書中最大的事情可能是尚未確定的 B3 機器的分配。

But if they increase the number of B3 machines, we would see that as a very big opportunity to add to our equipment backlog because we think there'll be some increased terminal deployments in the U.K. But the rest of it is kind of been baked in already into the operating model.

但如果他們增加 B3 機器的數量，我們會認為這是增加我們的設備積壓的一個非常大的機會，因為我們認為英國的終端部署會有所增加，但其餘的都已經被考慮在內了已經進入營運模式。

So I don't think that there's much that other than that, that we see in the white paper that would have any real impact.

因此，我認為除此之外，我們在白皮書中看到的內容不會產生任何真正的影響。

Okay.

好的。

Perfect.

完美的。

Thank you.

謝謝。

And then on the accounting items that you talked about at the -- outside of the call, should we expect any more in the second quarter and I'm sorry, Lorne, I believe you quantified in terms of the impact for Q1.

然後，關於您在電話會議之外談到的會計項目，我們是否應該對第二季度做出更多預期？

Could you hit on that again, please?

請你再講一下好嗎？

I think -- yes, Q1, it was about $5 million.

我想——是的，第一季度，大約是 500 萬美元。

I don't actually think I did comment on.

我實際上認為我沒有發表評論。

I said it's been $10 million since the whole episode.

我說從整集到現在已經1000萬美元了。

Said a bunch was below the line, but some

說有一堆是線下的，但也有一些

--

--

$5 million is what we spent in the first quarter.

我們第一季的支出為 500 萬美元。

Okay.

好的。

And anything to expect in Q2 or Q3?

第二季或第三季有什麼值得期待的嗎？

Or is this behind us?

還是這已經在我們身後了？

I think that we'll have some additional charges, but much less than $5 million as we continue some of the remediation efforts around our material weaknesses, but we would expect those to be much less and then additional legal costs, but that's it.

我認為我們會收取一些額外費用，但遠低於500 萬美元，因為我們將繼續圍繞我們的實質缺陷進行一些補救工作，但我們預計這些費用會少得多，然後會增加額外的法律費用，但僅此而已。

There are no more questions at this time.

目前沒有更多問題。

I will now turn the conference back over to Lorne Weil for closing remarks.

現在，我將把會議轉回洛恩·韋爾進行閉幕致詞。

Thanks, operator.

謝謝，接線生。

Again, thanks, everyone, for joining.

再次感謝大家的加入。

I think the first quarter clearly is not indicative of where the company is right now and where we see it progressing through the balance of the year.

我認為第一季顯然並不能表明公司目前的狀況以及我們看到的今年剩餘時間的進展。

I think it's just one of those quarters that inevitably happens.

我認為這只是不可避免發生的情況之一。

But the second and third quarters and the quarters beyond will be dramatically improved from the first quarter.

但第二季、第三季以及以後的季度將比第一季有顯著改善。

And I think by the time we get to the end of the year, we're going to be very pleased with where we are.

我認為，到今年年底時，我們將對目前的狀況感到非常滿意。

So thanks again for joining, and we'll speak to you again in three months.

再次感謝您的加入，我們將在三個月後再次與您聯繫。

Ladies and gentlemen, that concludes today's call.

女士們、先生們，今天的電話會議到此結束。

Thank you all for joining.

感謝大家的加入。

You may now disconnect.

您現在可以斷開連線。