Inspired Entertainment Inc (INSE) 2025 Q1 法說會逐字稿

Good morning, everyone and welcome to the Inspired Entertainment first quarter 2025 conference call. Please note today's event is being recorded.

大家早安，歡迎參加 Inspired Entertainment 2025 年第一季電話會議。請注意，今天的活動正在記錄。

Please refer to the company's safe harbour statement that appears in the first quarter 2025 earnings press release, which is also available in the investor section of the company's website at www.inseinc.com.

請參閱該公司 2025 年第一季財報新聞稿中的安全港聲明，該聲明也可在本公司網站 www.inseinc.com 的投資者部分查閱。

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

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根據證券法和美國證券交易委員會規則被視為前瞻性的聲明。這些聲明是基於管理層目前的預期或信念，並受風險、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. A reconciliation is included in the earnings press release. With that completed, I would now like to turn the conference call over to Lorne Weil, the company's executive Chairman. Mr. Weil, please go ahead.

此外，請注意，公司將討論 GAAP 和非 GAAP 財務指標。收益新聞稿中包含了對帳內容。完成後，我現在想將電話會議交給公司執行董事長 Lorne Weil。韋爾先生，請繼續。

Thank you, operator. Good morning, everyone, and thank you for joining our first quarter call. With me here, as usual are Brooks Pierce, James Richardson, and Eric Carrera.

謝謝您，接線生。大家早安，感謝大家參加我們的第一季電話會議。和我一起來的還有布魯克斯·皮爾斯、詹姆斯·理查森和艾瑞克·卡雷拉。

First quarter adjusted EBITDA $18.5 million. It was nicely ahead of last year, growing at close to 20% despite some unexpected negatives, as Brooks will discuss in a few minutes. The leisure business was hurt by the slippage of the UK Easter holiday from the First to the second quarter, which is a very important period for the business.

第一季調整後EBITDA為1850萬美元。儘管出現了一些意想不到的負面因素，但今年的成長率仍接近 20%，這比去年有了很大的進步，布魯克斯將在幾分鐘後進行討論。英國復活節假期從第一季推遲到第二季度，這對休閒業務造成了影響，而第二季度是該業務非常重要的時期。

So, one time product sales similarly slipped from the first into the second quarter, and there were disturbances in Brazil as new regulations, including new taxes came into effect.

因此，一次性產品銷售額同樣從第一季下滑至第二季度，而且隨著新稅等新法規的生效，巴西出現了動盪。

And finally, we lost about a million of EBITDA due to the reclassification of least revenue, as we discussed recently at our year-end call. So, in summary then we were actually very pleased with the underlying progress in the first quarter.

最後，正如我們最近在年終電話會議上討論的那樣，由於最低收入的重新分類，我們損失了大約一百萬美元的 EBITDA。總而言之，我們對第一季的基本進展感到非常滿意。

Following the close of the quarter, we have successfully negotiated the refinancing of our existing publicly syndicated bonds.

本季結束後，我們已成功協商現有公開銀團債券的再融資。

Due in June 2026. With a five-year sterling denominated floating rate financing with Barclays and HG Bora. We expected to sign definitive agreements and to have the new financing in place next month.

預計 2026 年 6 月到期。與巴克萊銀行和 HG Bora 簽訂了五年期英鎊計價浮動利率融資協議。我們預計下個月簽署最終協議並獲得新的融資。

As previously discussed, we hope to complete the sale of our holiday park business in the relative near term. And we intend to use the proceeds towards deleveraging. Finally, as compared to our existing bonds.

正如之前所討論的，我們希望在相對較短的時間內完成我們的度假公園業務的出售。我們打算利用所得來去槓桿。最後，與我們現有的債券相比。

The new financing will allow much greater flexibility going forward. All in all, then, we're very pleased to have successfully negotiated this financing in a less-than-ideal environment.

新的融資方式將為未來帶來更大的彈性。總而言之，我們很高興能夠在不太理想的環境下成功協商完成這筆融資。

With two lenders with whom we had had a great relationship for many years. Let me say on this issue of deleveraging for a long time.

我們與兩家貸款機構保持了多年的良好關係。關於去槓桿這個話題，我講很久了。

Once we finalize the sale of our holiday park business, we will have divested the part of our business with the highest relative capital intensity.

一旦我們完成度假公園業務的出售，我們將剝離相對資本密集度最高的業務部分。

As we explained in the past, our recurring retail betting shop revenue in the UK and Europe is that at this point predominantly capital li. And in North America, our retail business is a combination of equipment sales and recurring content revenue similarly involving essentially no CapEx.

正如我們過去所解釋的那樣，我們在英國和歐洲的經常性零售投注店收入目前主要是資本。在北美，我們的零售業務是設備銷售和經常性內容收入的組合，同樣基本上不涉及資本支出。

So our one remaining capital intensive retail segment is the UK pub business, and here again we have begun to implement a plan to mirror our other retail businesses where we will sell the equipment, generating recurring and predictable content and server platform fees and minimize cap backs.

因此，我們剩下的一個資本密集型零售部門是英國酒吧業務，在這裡我們再次開始實施一項計劃，以反映我們的其他零售業務，我們將銷售設備，產生經常性和可預測的內容和服務器平台費用，並儘量減少資本回流。

As was the case with our betting shop business, there will be some loss of public revenue in the transition phase, since there will no longer be a return of capital component pricing. But this will be ultimately outweighed by the free cash flow and deleveraging benefit.

就像我們的投注站業務一樣，過渡階段將會出現一些公共收入損失，因為不再有資本成分定價的回報。但這最終將被自由現金流和去槓桿效益所抵消。

Our goal with all these initiatives is to get our annual cap back to around $25 million, almost all of the content related for both our retail businesses. And more importantly, are rapidly growing and very profitable digital businesses.

我們採取所有這些措施的目標是將年度上限恢復到 2,500 萬美元左右，幾乎所有內容都與我們的零售業務有關。更重要的是，數位業務正在快速成長，利潤豐厚。

So let me then turn to a discussion of our digital businesses. Our interactive business continues on its incredible growth trajectory.

那麼讓我來討論一下我們的數位業務。我們的互動業務繼續保持著令人難以置信的成長軌跡。

With revenue in EBITDA in the first quarter growing 49% and 79% respectively over quarter one 2024. In margins expanding from 54% in 2024 to 64% in 2025.

第一季的 EBITDA 營收分別比 2024 年第一季成長 49% 和 79%。利潤率將從 2024 年的 54% 擴大到 2025 年的 64%。

Demonstrating the incredible scalability of this business. Virtually every week since the close of the quarter has recorded a new high.

展示了該業務令人難以置信的可擴展性。自本季結束以來，幾乎每週都創下新高。

Our business in the United States in the first quarter grew by 90% against underlying market growth of about 20%. Reflecting the quality and quantity of our content and the intensity of our account management.

我們第一季在美國的業務成長了 90%，而同期基本市場的成長速度約為 20%。體現了我們內容的品質和數量以及我們帳戶管理的強度。

And bear in mind that we have only begun to see the potential for hybrid dealer. It's pretty clear at this point that looking ahead, the individual states in the United States are being forced to be far less dependent on the federal government in terms of healthcare, education, housing, and so forth. And there will be a predictable requirement for new sources of state revenue. This is inescapable.

請記住，我們才剛開始看到混合經銷商的潛力。目前很明顯的是，展望未來，美國各州在醫療保健、教育、住房等方面將被迫減少對聯邦政府的依賴。可以預見的是，國家將需要新的收入來源。這是無法避免的。

I have mentioned previously that in states like Michigan, New Jersey, Pennsylvania, and most recently Delaware, and gaming, where our interactive business participates, overwhelms sports betting in terms of revenue and profitability.

我之前提到過，在密西根州、新澤西州、賓夕法尼亞州以及最近的特拉華州，我們的互動業務參與的博彩業在收入和盈利能力方面都超過了體育博彩業。

So, looking back over the arc of the 50-year history of the relationship between gaming and state finances. We can see pretty clearly how this is going to play out and we're ideally positioned to benefit. Our virtual sports business continues to show a remarkable level of profitability, although obviously accompanied by difficult dynamics.

因此，回顧博彩業與國家財政關係的 50 年歷史。我們可以很清楚地看到事情將如何發展，並且我們處於理想的受益位置。我們的虛擬體育業務繼續展現出卓越的獲利水平，儘管顯然伴隨著困難的動態。

While the year over year quarterly decline in virtual sports, even though unfortunately masks the overall strength and acceleration in the rest of the business, the sequential performance is telling a somewhat different story.

儘管虛擬體育的季度同比下滑不幸掩蓋了其他業務的整體實力和加速發展，但連續的表現卻講述了一個略有不同的故事。

The data from the last several weeks is indicating that the business has essentially stabilized and as Brooks will discuss at far greater detail, driven by a number of important initiatives. We expect the business to return to year over year growth.

過去幾週的數據表明，業務已基本穩定，正如布魯克斯將更詳細地討論的那樣，這是由一系列重要舉措推動的。我們預計業務將恢復同比增長。

By the third quarter or certainly the second half of this year. Together with the strength in our interactive and retail businesses, this would allow for an acceleration in aggregate. And with that, I'm pleased to hand things over to Brooks.

到今年第三季或肯定是下半年。加上我們互動和零售業務的實力，這將加速整體成長。現在，我很高興將工作交給布魯克斯。

Okay, thank you, Lorne.

好的，謝謝你，洛恩。

I'll go through each business segment in some detail. My remarks will be a little longer than usual as we have a number of items to cover, to give a comprehensive perspective on what we're seeing in the business and the markets we serve.

我將詳細介紹每個業務部門。我的發言會比平常長一點，因為我們要討論很多內容，以便全面地介紹我們所看到的業務和我們所服務的市場的情況。

So again, just reiterating what Lorne said, let's start with the interactive segment that continues to produce incredibly strong results, and that momentum is carrying over into the second quarter with quarter one revenue increasing 49% and as Lorne mentioned, adjusted EBITDA increasing 75% over the same period, continuing the trend of substantial growth and increased operating leverage.

因此，再次重申 Lorne 所說的話，讓我們從互動部門開始，該部門繼續產生令人難以置信的強勁業績，並且這種勢頭延續到了第二季度，第一季度收入增長了 49%，正如 Lorne 提到的，調整後的 EBITDA 同期增長了 75%，延續了大幅增長和經營槓桿增加的趨勢。

All this growth is broad-based geographically where we've seen the biggest growth year over year in North America, where we've now added Delaware through our partnership with Brush Street and the partnership is off to an outstanding start.

所有這些增長都是基於廣泛的地理區域的，其中我們看到北美地區同比增長最大，現在我們通過與 Brush Street 的合作將特拉華州也納入其中，並且這一合作已經有了一個很好的開端。

Our game designers have increased their focus on US style games, which has really paid off with leading titles like Wolf It Up and Big Piggy Bank. They use a unique game mechanic that's resonated with players.

我們的遊戲設計師更加重視美式風格的遊戲，而像 Wolf It Up 和 Big Piggy Bank 這樣的領先遊戲確實帶來了回報。他們使用一種獨特的遊戲機制來引起玩家的共鳴。

We recently completed a tour of some of the key US operators, and they affirmed that our games are continuing to grow with them and that they are some of their key titles.

我們最近完成了對一些美國主要運營商的考察，他們肯定我們的遊戲正在與他們一起成長，並且是他們的一些關鍵遊戲。

Additionally, we're excited to be adding some key markets later this year in North America and abroad with our games going live in West Virginia as well as in South Africa.

此外，我們很高興今年稍後我們的遊戲將在西維吉尼亞州和南非上線，拓展北美和海外​​的一些關鍵市場。

Let's go over to hybrid dealer. The hybrid dealer, which comes from a combination of the game design and virtual design teams, is a product category we've talked about a lot and is now scaling rapidly.

我們去混合動力經銷商看看吧。混合荷官是由遊戲設計和虛擬設計團隊結合而成，是我們經常討論的產品類別，目前正在迅速擴大規模。

So, this product has three derivatives at the moment, so the branded wheel games, single zero roulette, and four ball extra bed roulette, but we have many more derivatives in development that we're excited to get out to the market.

因此，該產品目前有三種衍生產品，即品牌輪盤遊戲、單零輪盤賭和四球加床輪盤賭，但我們正在開發更多衍生產品，我們很高興將它們推向市場。

Our branded wheel games are live with both Bet MGM and Caesars in New Jersey, and in Michigan with Bet MGM and with Caesars going live in Michigan and Ontario, likely in the second quarter this year. We'll also deliver this product to the Pennsylvania market once we receive the requisite regulatory approvals.

我們的品牌輪盤遊戲已在新澤西州與 Bet MGM 和 Caesars 合作上線，在密西根州與 Bet MGM 合作上線，而 Caesars 將於密西根州和安大略省上線，可能在今年第二季度上線。一旦我們獲得必要的監管部門批准，我們也將把該產品推向賓州市場。

That MGM Bonus City has now been live for over 14 months and has enjoyed sustained performance and even has seen substantial increases in total value played over the last two months. We're obviously gratified to see that this product has the staying power and continues to be enjoyed by players more than a year after its launch.

MGM Bonus City 現已上線超過 14 個月，並且一直表現穩定，甚至在過去兩個月中總遊戲價值大幅增長。我們非常高興地看到，這款產品擁有持久力，在推出一年多後仍然受到玩家的喜愛。

We now also have both single zero roulette live in the UK with Bet365 and with GameSys and integrated with relax, which has it deployed with a number of operators. We expect to go live with Latto Quebec and May and expect that that will be a key launch for us.

我們現在還與 Bet365 和 GameSys 合作，在英國提供單零輪盤賭直播，並與 Relax 集成，後者已與多家運營商合作部署。我們期望與 Latto Quebec 和 May 合作上線，並期望這將是我們的一個重要的發布。

We'll also be rolling this out with a number of operators in Brazil here in the second quarter and later in the year starting with Bet365 in Brazil.

我們還將在第二季與巴西的多家營運商合作推出這項服務，並在今年稍後率先在巴西推出 Bet365 服務。

And then moving on to the latest derivative game, the four ball extra bet game, now live with GameSiss and relax, and the early results are encouraging. We'll be rolling this out to Bet365 and MGM in New Jersey later this quarter, as well as to another to a number of additional integrators in multiple markets.

然後轉到最新的衍生遊戲，四球額外投注遊戲，現在與 GameSiss 一起生活並放鬆，早期的結果令人鼓舞。我們將在本季稍後向新澤西州的 Bet365 和 MGM 推出這項服務，同時也將向多個市場中的其他一些整合商推出這項服務。

Needless to say, it's a very busy time with this product category, and we'll start sharing metrics later in the year as it settles in. But I can say safely that the combination of continued growth in the core I gaming segment along with the accelerating rollout of hybrid dealer has us feeling very good about the segment of the company.

不用說，這個產品類別現在是非常繁忙的時期，我們將在今年稍後開始分享指標。但我可以肯定地說，核心 I 遊戲部門的持續成長以及混合經銷商的加速推出讓我們對公司的這個部門感到非常樂觀。

Going over to the virtual business, we're encouraged by the stabilization we've seen in the business after a clearly challenging start to January due to the move to a fully taxed and regulated market in Brazil. It's been discussed broadly across the industry.

談到虛擬業務，由於轉向完全徵稅和監管的巴西市場，1 月開局明顯充滿挑戰，但之後業務逐漸穩定，這讓我們感到鼓舞。整個行業對此進行了廣泛的討論。

We're no different and we're impacted as well but have seen a steadying in that market from our two biggest customers in the last few months. We also have a number of key initiatives happening over the next several quarters that we believe will put virtual back on the growth trajectory.

我們沒有什麼不同，我們也受到了影響，但在過去的幾個月裡，我們的兩個最大客戶已經使該市場趨於穩定。我們也將在接下來的幾季推出一些重要舉措，我們相信這些舉措將使虛擬業務重回成長軌道。

We're focused on launching our licensed content such as the NFL, NBA, and NHL. They cater to a North American audience with key operators in North America, and we aim to be able to go live with that MGM during the second half of the year.

我們專注於推出我們的授權內容，例如 NFL、NBA 和 NHL。他們透過北美的主要營運商來滿足北美觀眾的需求，我們的目標是在今年下半年與米高梅合作上線。

In Brazil, although it's early days, we launched a Brazil-specific soccer game in Portuguese and with local stadium views. The early performance numbers are encouraging, with one operator showing stakes growth of over 25%, and we'll be deploying this version to our largest Brazil customers over the next several months.

在巴西，儘管還處於早期階段，但我們推出了一款葡萄牙語版、帶有當地體育場景觀的巴西特色足球遊戲。早期的業績數據令人鼓舞，其中一家業者的股份成長率超過 25%，我們將在未來幾個月內將此版本部署到我們最大的巴西客戶。

In Greece, oops adding a fourth virtual sports channel to its retail state that should drive incremental play. And we've also just gone live in Turkey through our partnership with Cle Flutter to add our virtual products in 2000 retail shops with monitors in addition, another 3,000 shops where customers would be able to bet using a QR code.

在希臘，零售州新增了第四個虛擬體育頻道，這應該會推動體育賽事的增加。我們也剛剛透過與 Cle Flutter 合作在土耳其上線，在 2000 家配備監視器的零售店中添加我們的虛擬產品，另外還有 3000 家商店，顧客可以使用二維碼進行下注。

Finally, we're excited to launch our lottery game with the Virginia Lottery here in the second quarter, which will be our first online lottery deployment in North America through a partnership with Aristocrat Interactive and with a very successful lottery operator in the Virginia Lottery.

最後，我們很高興在第二季度與維吉尼亞州彩票合作推出我們的彩票遊戲，這將是我們透過與 Aristocrat Interactive 以及維吉尼亞州彩票這家非常成功的彩票運營商的合作，在北美首次部署線上彩票。

We're very active in the lottery space in both North America and around the world, and they expect this to be a very good channel for the virtual sports product.

我們在北美和世界各地的彩票領域非常活躍，他們期望這成為​​虛擬體育產品的一個非常好的管道。

Moving on to the gaming segment, the business continues to perform well through a combination of new cabinets with a key customer, as well as cost savings initiatives being realized despite the macroeconomic challenges in the retail sector in the UK.

轉向遊戲領域，儘管英國零售業面臨宏觀經濟挑戰，但透過與關鍵客戶的新機櫃組合以及正在實施的成本節約舉措，該業務繼續表現良好。

We successfully delivered and installed the 5,000 vantage terminals to the William Hill estate on time and on budget, and we're seeing high single digit growth from this customer year over year.

我們按時、按預算成功地向威廉希爾地產交付並安裝了 5,000 個有利終端，並且我們看到該客戶的收入逐年呈高個位數增長。

In Greece, we also expect to see the benefit of the rollout of our newest terminals in the market throughout this year and have a roadmap of strong local-based content that will be delivered.

在希臘，我們也希望看到我們今年在市場上推出的最新終端帶來的好處，並制定出交付強大的本地內容的路線圖。

In Illinois, it's early in the trial period, but we are seeing strong performance from our portrait style, Valiant cabinet, and our game subscriptions were taken up by almost all customers in the market, leading to the strongest game performance since we went live there several years ago.

在伊利諾州，目前還處於試用期的早期階段，但我們的肖像風格、Valiant 機櫃表現強勁，而且我們的遊戲訂閱幾乎被市場上的所有客戶所接受，從而帶來了自幾年前上線以來最強勁的遊戲表現。

And finally, our leisure business performed as expected with the one notable point that Lauren mentioned, being that the UK holiday was in the first quarter last year and in the second quarter this year, which caused the disconnect in the performance numbers.

最後，我們的休閒業務表現符合預期，勞倫提到的一個值得注意的點是，英國的假期去年在第一季度，而今年在第二季度，這導致了業績數據的脫節。

And now that we've had that holiday period, we've seen strong results at the holiday parks over that holiday weekend. With that, I'll hand it back over to Lorne for any closing remarks.

現在我們已經度過了假期，我們看到假日公園在那個假日週末取得了很好的成績。說完這些，我將把發言權交還給 Lorne，請他做最後的總結發言。

Thanks, Brooks. That was a great.

謝謝，布魯克斯。那真是太棒了。

Summary of Actually an incredible range of activities going on in the company right now, but I don't have any. Further comments to make, so operator, if you could please turn the program over to Q&A.

事實上，目前公司正在進行一系列令人難以置信的活動，但我卻沒有參加。還有進一步的評論，所以操作員，請將程序轉至問答環節。

(Operator Instructions)

（操作員指示）

Our first question comes from the line of Barry Jones from Truist Securities. Please go ahead.

我們的第一個問題來自 Truist Securities 的 Barry Jones。請繼續。

Hey guys, the main question we're getting now is just on the tariffs in the US. Can you maybe just talk about the ramifications on the business both on the cost side and also if you're seeing any changes in operator or player behaviours?

嘿夥計們，我們現在的主要問題是關於美國的關稅。您能否談談這對業務的影響，包括成本方面，以及您是否看到運營商或玩家行為有任何變化？

Thank you.

謝謝。

Yeah, tariff is not a big issue for us because really the only impact could potentially be in sales in Illinois, which is not a huge part of our business. Ironically, being kind of UK based, we have an opportunity to sell and to the Canadian markets that we think actually the tariff.

是的，關稅對我們來說不是什麼大問題，因為實際上唯一可能的影響是伊利諾伊州的銷售，而這不是我們業務的很大一部分。諷刺的是，作為一家英國公司，我們有機會向加拿大市場銷售產品，而我們認為這實際上是一種關稅。

Issue could actually potentially help us, but frankly, the tariff issue not a big issue for us as we're seeing it right now.

這個問題實際上可能對我們有幫助，但坦白說，就我們目前所看到的情況而言，關稅問題對我們來說並不是什麼大問題。

Well, it was also a Barry, there was a thing in the press this morning. I didn't have a chance to read it carefully, but something about announcing that President Trump Did some kind of trade deal with the UK. So, if that's actually the case. Then we absolutely don't have any issue, with tariffs, obviously.

嗯，這也是巴里，今天早上媒體上有報導。我沒有機會仔細閱讀，但其中有一些關於宣布川普總統與英國達成某種貿易協議的內容。那麼，如果事實確實如此。那麼，我們顯然絕對不存在任何關稅問題。

Okay, and just I mean one of your customers reported last night on the interactive side and said not really seeing much, just confirming across your US interactive base it's the same thing no expected ramifications.

好的，我的意思是，您的一位客戶昨晚在互動方面報告說並沒有看到太多情況，只是確認了整個美國互動基地的情況都是同一件事，沒有預期的後果。

No, not at all, not from a consumer perspective.

不，從消費者的角度來看，完全不是。

No, I mean, I think as I said in my remarks, obviously the first quarter was great and the trends continue now that we're kind of almost halfway through the second quarter, we're not seeing any slowing down at all in the interactive numbers.

不，我的意思是，正如我在發言中所說的那樣，顯然第一季表現很棒，而且這種趨勢現在仍在繼續，因為我們已經快到第二季度的一半了，我們沒有看到互動數字有任何放緩。

Got it. So, I appreciate the commentary about the Holiday Park business and reworking the pub business. Does that sort of set you on the path to hit that 40%, even margin target you've talked about in the past and maybe just the sense of timing to achieve that goal, broadly speaking?

知道了。因此，我很欣賞有關假日公園業務和重新開展酒吧業務的評論。從廣義上講，這是否能幫助您實現您過去談到的 40% 甚至更高的利潤率目標，或者也許只是實現該目標的時機感？

Yeah, so. I think it more once it's done it more than sets us on the path it pretty much guarantees that we're going to have EBITDA margins, comfortably over 40%. We're cautiously optimistic that we will conclude that well, certainly this year and hopefully within the next few months.

是的，是這樣。我認為，一旦完成，它不僅能讓我們走上正軌，還能保證我們的 EBITDA 利潤率將輕鬆超過 40%。我們謹慎樂觀地認為，我們一定會在今年得出這個好結論，並且希望能夠在接下來的幾個月內得出這個結論。

Got it. All right, thank you so much, guys.

知道了。好的，非常感謝你們。

Thanks.

謝謝。

Our next question comes from the line of Ryan Sigdahl from Craig-Hallum Capital Group. Please go ahead.

我們的下一個問題來自 Craig-Hallum Capital Group 的 Ryan Sigdahl。請繼續。

Hey, good morning, guys. I want to go to virtual sports. So, if I look at comments from March 17 when you reported quarter four, so order almost over, it said we indeed we passed the inflection point, that we've seen stabilization in virtual sports in the first quarter thus far. Etc.

嘿，大家早安。我想參加虛擬體育賽事。因此，如果我看一下您報告第四季度時 3 月 17 日的評論，訂單幾乎結束了，它說我們確實已經過了拐點，到目前為止，我們已經看到第一季虛擬體育趨於穩定。ETC。

I guess what happened because the numbers stepped down in a pretty big way, sequentially even bigger year over year. I get the reasons, and we've heard the same thing from Brazil, the transition period flutter said it last night, etc. But just the friction with customers. But I guess what happened. From the last time you guys spoke at the tail end of the quarter to I guess the results in the quarter.

我想這是因為數字大幅下降，逐年下降幅度更大。我明白原因，我們也聽到了來自巴西的同樣的事情，過渡期波動昨晚也說過，等等。但這只是與客戶的摩擦。但我猜發生了什麼事。從你們上次在本季末的談話到我猜測的本季的結果。

Yeah, I mean, I think, well, a couple of things in terms of the stabilization now obviously here we are, in the early part of May, so we have another, five weeks of, well, actually since March 17, really probably seven or eight weeks of data that we look at very closely and we plot and we do see a stabilization.

是的，我的意思是，我認為，嗯，現在就穩定而言，顯然我們已經到了五月初，所以我們還有另外五週，嗯，實際上從 3 月 17 日開始，實際上可能有七八週的數據，我們非常仔細地觀察並繪製了圖表，我們確實看到了穩定。

Now on a week-to-week basis we do see, continued volatility. So, we feel, again, probably more comfortable. We were seeing those trends when we talked about it in March, but now that we're in the early part of May, we just have more time to be able to see that it really has stabilized. But I will say.

現在，我們每週確實看到持續的波動。因此，我們可能再次感到更加舒適。我們在三月談論這個問題時就看到了這些趨勢，但現在我們已經到了五月初，我們有更多的時間可以看到它確實已經穩定下來。但我會說。

In terms of the volatility over the course of the 13 or 14 weeks, it stabilizes, but each week, there's ups and downs. But the biggest issue is, we talked about was in the beginning of the quarter was the combination of obviously the changes in, signing up customers and everything else in Brazil and obviously the tax rate.

就 13 或 14 週內的波動性而言，它會趨於穩定，但每週都會有起伏。但最大的問題是，我們在本季初討論的是明顯的變化，包括簽約客戶和巴西的其他一切，以及明顯的稅率。

Yeah, but just, but Ryan, just to make it clear, when we talked in March, in the year-end conference call, so we at that point we had had January, February, March, most of March results.

是的，但是，瑞安，只是為了澄清一下，當我們在三月的年終電話會議上談論時，那時我們已經有了三月份、二月份、三月份的大部分業績。

And although we knew that the first quarter itself was going to be down sequentially from the fourth quarter, although at a diminishing rate.

儘管我們知道第一季的銷售額將比第四季環比下降，但下降速度正在減緩。

We saw pretty clearly in March that once we had that step down from the fourth quarter that had thought that we had definitely levelled out.

我們在三月就清楚地看到，一旦我們從第四季開始下滑，我們就認為我們已經完全穩定下來了。

In March, in January, February, March, and we're we still saw that in April and so far in May. So, I think we're as comfortable as we can be that we have seen the bottom of a of the virtual sports volume and we should be heading upwards from here.

三月、一月、二月、三月，四月和五月我們仍然看到這種情況。因此，我認為我們已經非常放心，我們已經看到了虛擬體育量的底部，並且我們應該從這裡開始向上發展。

Great, glad to hear the debt refinance, anything you can share from a term standpoint, how the rate may have may or may not compare to, the existing.

太好了，很高興聽到債務再融資的消息，您能從期限的角度分享什麼嗎，利率與現有利率相比可能如何或可能不如何。

Yeah. So let me start answering that Ryan, by saying that in that refi, we had a bunch of objectives. To push the maturity out obviously for five years. Very importantly, to minimize the call protection so that we have maximum flexibility. For example, to either refinance or to make a major M&A transaction going forward.

是的。因此，讓我先回答瑞安的問題，在那次再融資中，我們有很多目標。顯然要將成熟期延後五年。非常重要的是，盡量減少呼叫保護，以便我們擁有最大的靈活性。例如，要么進行再融資，要么進行重大的併購交易。

We wanted a floating rate to take advantage of the downward sloping forward, so when your sterling curve. And ideally, we also wanted a starting rate that was inside where our current bronzes were trading. In a pretty tough market, and I think we accomplished all these.

我們希望浮動利率能夠利用向下傾斜的優勢，因此當您的英鎊曲線。理想情況下，我們也希望起始匯率位於我們目前青銅交易的範圍內。在相當艱難的市場中，我認為我們完成了這一切。

Given obviously that there are trade-offs among them, we could have agreed to a fixed rate and had other better terms, but I think the idea was to get the best possible package of stuff.

顯然，考慮到它們之間存在權衡，我們本可以同意一個固定利率並提出其他更好的條款，但我認為我們的想法是為了獲得最好的方案。

So, with the rate reduction that coincidentally and fortuitously was announced this morning by the Bank of England. Are going in rate of six points. Over so-called Sonia is a little over 10%. And given the slope of the curve and the currently projected rate reductions. We feel that we'll comfortably be at about 9.5% by the end of this year.

因此，英格蘭銀行今天早上恰好宣布了降息。正以六分的速度前進。所謂的索妮亞超過了10%。並給出曲線的斜率和目前預期的降息幅度。我們預計，到今年年底，這一比例將輕鬆達到 9.5% 左右。

And beyond that we have two steps down in the spread as we do leverage. Beginning with the anticipated sale of our holiday park business later this year. A So in terms of an interest expense number.

除此之外，由於我們利用了槓桿，利差也降低了兩個等級。首先是預計今年稍後出售我們的度假公園業務。答：就利息支出數字而言。

Let's say Ryan for modelling purposes. I think $30 million in interest for 2026 is a very safe number. And we could see reductions from there. As either the senior rate drops more or more likely, we get the benefits from deleveraging.

為了建模目的，我們假設 Ryan 是這樣的。我認為 2026 年 3000 萬美元的利息是一個非常安全的數字。我們可以從那裡看到減少。隨著高級利率下降幅度加大或可能性加大，我們將從去槓桿中獲益。

This is a little higher than where we are now. But from a cash point of view, given a very significant reduction in CapEx, as I noted previously, we should be well ahead in terms of free cash flow.

這比我們現在的水準高一點。但從現金角度來看，鑑於資本支出大幅減少，正如我之前提到的，我們在自由現金流方面應該遙遙領先。

Hopefully that answers your question.

希望這能回答你的問題。

That was very helpful.

這非常有幫助。

Thank you, Lorne, and flexibility, yeah, is very important in this market with everything you have going on. Looking forward to hearing the holiday park sale, and that's it for us. Thanks. Good luck, guys.

謝謝你，洛恩，是的，靈活性在這個市場上非常重要，無論你做什麼。期待聽到假日公園促銷的消息，對我們來說就是這樣。謝謝。祝大家好運。

Thanks Ryan.

謝謝瑞安。

Your next question comes from the line of Jordan Bender from Citizens. Please go ahead.

您的下一個問題來自 Citizens 的 Jordan Bender。請繼續。

Good morning, everyone. I maybe want to follow up on the prior conversation. You mentioned several times, the attention to deleverage and in past quarters you've been comfortable with the balance sheet. Is that new way of thinking really just a function of the terms of the new debt?

大家早安。我可能想跟進之前的談話。您多次提到要專注於去槓桿，並且在過去幾個季度中您對資產負債表感到滿意。這種新的思維方式真的只是新債務條款的功能嗎？

They just become more favorable as leverage continues to fall. Is that kind of what you're getting at, Lorne?

隨著槓桿率持續下降，它們只會變得更有利。這就是你要表達的意思嗎，洛恩？

Well, yes, certainly with a new debt deal where we were we benefit from deleveraging, it gives us plenty of incentive to deleverage, but in a way, it was also the reverse that in negotiating the deal, because we were pretty confident that we were going to be leveraging.

嗯，是的，當然，透過一項新的債務協議，我們可以從去槓桿中受益，這給了我們很大的動力去去槓桿，但在某種程度上，這也是在談判協議時所採取的相反的做法，因為我們非常有信心我們將利用槓桿。

We were willing to enter into a deal where we would get to where we feel we want to be, once we deleverage. So, I think I think that deleveraging is It has always been sort of implicit.

我們願意達成協議，一旦我們去槓桿，我們就能達到我們想要的目標。所以，我認為去槓桿一直是隱性的。

As our fastest growing and most profitable and least capital-intensive business is the digital business and the slower growing business is the retail business, but the sale of holiday parks and the let's say remodelling of us of our business just accelerates that.

我們成長最快、利潤最高、資本密集度最低的業務是數位業務，而成長較慢的業務是零售業務，但度假公園的出售以及我們業務的重塑只會加速這一進程。

Great. And moving back to Brazil, it was fairly well telegraphed that market had a slow start, and it's good to see you seeing stabilization there.

偉大的。回到巴西，很明顯，市場起步緩慢，很高興看到那裡趨於穩定。

Curious on the adoption rate of the new wave of players, the virtual sports market, and you know we've all seen the estimates for the size and potential of Brazil, but is there any kind of aspirational number in terms of revenue that you could look to drive from that market?

我很好奇新一波玩家、虛擬運動市場的採用率，而且您知道我們都看到了巴西規模和潛力的估計，但是就收入而言，您是否希望從該市場獲得任何理想的數字？

Thank you.

謝謝。

Yeah, I mean, one of the things I mentioned is the performance that we've seen from this kind of localized content. I mean, obviously it's a very soccer slash football crazy market and that's where the majority, at least in virtual sports. I played out, we saw it with one of our smaller customers, this huge uplift.

是的，我的意思是，我提到的一件事就是我們從這種在地化內容中看到的表現。我的意思是，顯然這是一個對足球和橄欖球非常瘋狂的市場，而且至少在虛擬體育領域，足球佔據了主導地位。我示範了一下，我們在一位較小的客戶身上看到了這種巨大的提升。

We actually just went live yesterday with one of our two big customers in Brazil with that product, and we saw, a very nice day yesterday, obviously very early days. The thing that we need to do in Brazil, quite frankly, is we need to get, we have the two biggest customers, that 365 and Pettano, which we think represent about 40% of the market.

事實上，我們昨天才剛向巴西的兩個大客戶之一推出了該產品，我們看到，昨天的情況非常好，顯然，這只是個開始。坦白說，我們在巴西需要做的事情是，我們需要獲得我們最大的兩個客戶，即 365 和 Pettano，我們認為它們佔據了約 40% 的市場份額。

You add in in with sporting bet and you know we kind of have half the market, but we need to get the other half of the market live with virtual sports and that's going to take, sometime in terms of getting contracts negotiated, getting integrations done, we're working through channel partners down there.

加上體育博彩，我們佔據了一半的市場份額，但我們需要透過虛擬體育來佔領另一半市場，這需要一些時間來協商合同，完成整合，我們正在透過那裡的通路合作夥伴進行合作。

Such as Altar and Camby, so the market's just going to take, a little bit longer than probably we would hope to develop, but we are very bullish based on what we see from our existing customers that Brazil is going to be a very strong market for virtual sports.

例如 Altar 和 Camby，所以市場的發展可能比我們希望的要慢一點，但根據我們現有客戶的情況，我們非常看好巴西將成為虛擬體育的強大市場。

Great thank you very much.

非常好，非常感謝。

No problem.

沒問題。

Your next question comes from the line of Chad Benen from Macquarie. Please go ahead.

您的下一個問題來自麥格理的 Chad Benen。請繼續。

Morning, thanks for taking my question. I wanted to ask about just trends that you're seeing outside of the outside of the US or North America.

早上好，感謝您回答我的問題。我想問一下您在美國或北美以外看到的趨勢。

I think we all have a pretty good handle in terms of the consumer here, but as we look across the pond, kind of what we what you're seeing from a recurring basis, whether it's in the UK, Greece or Italy, Brooks.

我認為我們對這裡的消費者有很好的把握，但當我們把目光投向大西洋彼岸時，我們看到的是一種經常性的情況，無論是在英國、希臘還是義大利，布魯克斯。

I know you talked about some of the new product that's out there, so maybe it's a little harder to really kind of focus in on that. But any additional color just in terms of if you're seeing the consumer in those areas holding up through this period.

我知道您談到了一些新產品，所以可能真的很難集中精力於此。但是，如果您看到這些地區的消費者在這段期間內保持穩定，那麼任何額外的資訊都是如此。

Thank you. Yeah.

謝謝。是的。

Yeah, sure, yeah, and I know, some of the operators in the UK have already reported Entain, which is not a retail customer of ours, but they reported they were, I think, down 4%. On a retail basis, the good news for us is we're seeing William Hill get the uplifts that we were expecting from Vantage terminals, but if you're taking a year over year comparison.

是的，當然，是的，我知道，英國的一些運營商已經報告了 Entain，它不是我們的零售客戶，但他們報告說，我認為他們的收入下降了 4%。從零售角度來看，對我們來說好消息是，我們看到威廉希爾從 Vantage 終端獲得了我們預期的增長，但如果進行同比比較的話。

Our two other big customers, Betfed and Paddy Power have softened a bit, so the overall market for us is up, but it's, driven by the increase that we're seeing from William Hill. So, as I mentioned in my remarks, I think the UK retail. The high street market is a big challenged.

我們的另外兩位大客戶 Betfed 和 Paddy Power 的表現略有疲軟，因此我們的整體市場有所上漲，但這是由 William Hill 的成長所推動的。因此，正如我在評論中提到的，我認為是英國零售業。高街市場面臨巨大的挑戰。

Good news is on the gaming side is we're continuing to see growth out of the UK and continuing to see us take a bigger share of the UK pot kind of almost on a quarter-by-quarter basis.

好消息是，在遊戲方面，我們繼續看到英國以外的成長，幾乎每季都看到我們佔據英國遊戲市場更大份額。

In Greece it's relatively flat, but as we've talked about in the past, we're just rolling out some of our new terminals, so we would expect that to give us a lift over the course of the year, but Greece as a market itself is relatively. Flat. I'd say the same thing for Italy.

在希臘，這一增長相對平穩，但正如我們過去所談到的，我們剛剛推出了一些新的航站樓，因此我們預計這會在今年給我們帶來提振，但希臘作為一個市場本身的增長相對平穩。平坦的。對於義大利，我也會說同樣的話。

So, UK is the only one that we're seeing a little bit of softness with customers that have had the Vantage terminal for over a year, but thankfully William Hill's kind of hitting on all cylinders for us, so the market itself in total is up for us.

因此，我們看到，英國是唯一一個使用 Vantage 終端超過一年的客戶出現疲軟現象的國家，但值得慶幸的是，威廉希爾 (William Hill) 為我們全力以赴，因此整個市場本身對我們來說是有利的。

Great thank you and then Lorne, last quarter I believe it was you made a comment just in terms of where you expected digital to be at the end of the year as a percentage of, I believe it was a percentage of EBITDA.

非常感謝，然後 Lorne，上個季度我相信您就數字業務在年底所佔的百分比發表了評論，我相信是 EBITDA 的百分比。

Sounds like things are progressing pretty well and all the initiatives, continue to look good as we kind of get through the year. Has anything changed just in terms of how you view the contribution of EBITDA for the year?

聽起來事情進展得相當順利，隨著我們度過這一年，所有的舉措都繼續看起來很好。就您對今年 EBITDA 貢獻的看法而言，有什麼改變嗎？

No, I mean, I think the interactive. I Really so far outperforming where We might have expected it to be at this point. The, as I mentioned in my remarks, the growth. In North America or the United States of 90% year over year. A Without the benefit of any new states is kind of pretty remarkable. And I think for all the reasons that Brooks said.

不，我的意思是，我認為是互動的。我目前的表現確實超出了我們的預期。正如我在發言中提到的那樣，這是成長。在北美或美國年增 90%。沒有任何新州的利益，這真是太了不起了。我認為布魯克斯所說的所有原因都是正確的。

We're starting to feel. And the data is supporting it, pretty good about, where virtual is headed, so I think. The combination of ultimately divesting. The holiday park business and the tremendous performance we're seeing from digital, I would imagine that by the end of the year will be at least at the level that we talked about last time, if not higher.

我們開始感覺到了。我認為，數據很好地支持了虛擬的發展方向。最終剝離的組合。度假公園業務以及我們在數位領域看到的巨大表現，我想到今年年底至少會達到我們上次談到的水平，甚至更高。

Yeah, and I think just to add to that, we'll, I think in the next quarter, we'll look to give some hard data on hybrid dealer since it's really and it's scaling up phase, but now that we've seen it with, big operators like Caesars, Bet MGM, Bet365, GameSys, and a bunch of, what we would classify.

是的，我想補充一點，我們將在下個季度提供一些關於混合經銷商的硬數據，因為它確實處於擴大規模的階段，但現在我們已經看到了像 Caesars、Bet MGM、Bet365、GameSys 這樣的大型運營商，以及一些我們會分類的運營商。

Tier two operators, onto this relaxed integration, we're starting to see a pretty broad-based support for this, on a pretty much everyday basis. That side of the business is growing.

對於二級運營商來說，對於這種輕鬆的整合，我們幾乎每天都開始看到對此的廣泛支持。這方面的業務正在成長。

So now it's really about how can we get that out to as many customers as possible. It's definitely not a demand issue. It's a supply issue that we've got to get this out to as many customers as we can, but we'll, that's only going to add to the percentage of the business of the EBITDA contribution that will be digital.

所以現在真正的問題是我們如何推廣給盡可能多的客戶。這絕對不是需求問題。這是一個供應問題，我們必須將其提供給盡可能多的客戶，但這只會增加數位化業務在 EBITDA 貢獻中的百分比。

Thank you both.

謝謝你們兩位。

Your final question comes from the line of Josh Nichols from B Riley Securities. Please go ahead.

您的最後一個問題來自 B Riley Securities 的 Josh Nichols。請繼續。

Yeah, thanks for taking my question. Very nice step up during the quarter in cash. I just want to talk a little bit about how should we be thinking about free cash flow generation going forward just given the dynamics you have with increasing high margin digital revenue, you have as well as CapEx light model that you've been implementing in this new debt facility.

是的，感謝您回答我的問題。本季現金成長非常好。我只想稍微談一下，考慮到你們不斷增加的高利潤數位收入的動態，以及你們在這項新債務融資中實施的輕資本支出模式，我們應該如何考慮未來的自由現金流產生。

Yeah, I mean, I think without getting into any a specific number because we tend to try not to get involved in.

是的，我的意思是，我認為不需要涉及任何具體的數字，因為我們傾向於不參與其中。

Guidance per se, but certainly all the components. A that would go into Deciding what our free cash flow are moving positively, EBITDA is obviously going up. The portion of EBITDA that has relatively little CapEx is also going up.

本身是指導，但肯定是所有組成部分。這將決定我們的自由現金流是否呈正向流動，EBITDA 顯然正在上升。EBITDA 中資本支出相對較少的部分也在上升。

As I mentioned before, we've got a little bit. Of increase in interest expense, but that will be far more than offset by a decline in in CapEx, which we think, as I said earlier, it's going to probably settle at around $25 million a year, which is way below where it is now.

正如我之前提到的，我們已經得到了一點點。利息支出會增加，但這將遠遠被資本支出的下降所抵消，正如我之前所說，我們認為資本支出可能會穩定在每年 2500 萬美元左右，遠低於現在的水平。

So, I think Our free cash flow conversion. Is going to steadily increase. Maybe in the sort of 30% of EBITDA range. There are going to be years when it's going to be up or down depending upon how working capital plays itself out, it always seems.

所以，我認為我們的自由現金流轉換。將會穩定增加。可能在 EBITDA 的 30% 左右。看起來，未來幾年，這一數字將會上升或下降，這取決於營運資本的運作方式。

To be a pain at the end of the year, but I think we're feeling very positive about free cash flow in light of A In light of the deleveraging in light of the A reduction in CapEx. And obviously the growth in the A high margin A high cash convergent digital part of our business.

雖然在年底會很痛苦，但我認為，考慮到去槓桿和資本支出的減少，我們對自由現金流感到非常樂觀。顯然，我們業務中高利潤、高現金融合的數位部分正在成長。

Thanks.

謝謝。

And then just last follow up for me, just there's a lot of irons in the fire, so to speak, I think for the second half that provides some very interesting opportunities. If you were to pick what you're probably most excited about, I'm guessing hybrid dealer, if you could just talk about, is the expectation there that as this ramps that you think that the growth rate that that business is seeing is sustainable or could even possibly.

然後對我來說，最後一個跟進的是，可以說，有很多事情要做，我認為下半場將提供一些非常有趣的機會。如果您想要選擇最讓您興奮的事物，我猜是混合經銷商，如果您可以談論的話，那就是隨著這一增長，您認為該業務的增長率是可持續的，甚至可能是可持續的。

Accelerate, presumably it's not a very big right percentage of revenue today, but that should be increasing given the opportunities you've talked about over the last couple quarters.

加速，大概今天它佔收入的比例不是很大，但考慮到您在過去幾個季度談到的機會，這個比例應該會增加。

Yeah, I mean, I think you answered the question very well. That is exactly how we feel is that hybrid dealer, look, I mean, we're super excited about how just the core gaming business is growing and we're taking share, and the performance has been phenomenal.

是的，我的意思是，我認為你很好地回答了這個問題。這正是我們的感受，混合經銷商，你看，我的意思是，我們對核心遊戲業務的成長和市場份額感到非常興奮，而且業績非常出色。

And its early days with hybrid dealer, but you know it's clear the example I looked at was that I mentioned was the BMGM, bonus wheel that's been out now for 14 months, and this is it's not like IGaming where you know they have a kind of a short-lived trajectory and then they fade out.

混合經銷商還處於早期階段，但您知道，我看到的例子很明顯，我提到過 BMGM，獎勵輪盤已經推出 14 個月了，它不像 IGaming，您知道它們有一種短暫的軌跡，然後就會消失。

This is a game that's been out for 14 months and the numbers now are higher than they were when they started. So, we feel confident about that with and now we're starting to get, a good mix of the bigger operators and the smaller operators. We've got some big ones that are coming on board.

這款遊戲已經發布 14 個月了，現在的玩家數量比剛發佈時還要多。因此，我們對此充滿信心，現在我們開始實現大型營運商和小型營運商的良好組合。一些大公司即將加入我們。

FanDuel will come on board by the end of the year. So yeah, I mean that's the part that we're certainly the most excited about from a growth standpoint, starting from, a pretty small start, but yeah, that's. By the end of the year, I think we'll certainly be able to guide to how big we think that business can be for us.

FanDuel 將於今年底加入。是的，我的意思是，從成長的角度來看，這當然是我們最興奮的部分，從一個相當小的開始，但是，是的，就是這樣。到今年年底，我想我們肯定能夠確定這項業務對我們來說能有多大。

Appreciate it thank you.

非常感謝。

You're welcome.

不客氣。

I will now turn the call back over to Mr. Will for closing remarks.

現在我將把電話轉回給威爾先生，請他作最後發言。

Thank you, operator and thank you everyone for Joining us on our call, we know that 10 has their call starting at nine, so for those of you who are still on our call.

謝謝接線員，也謝謝大家參加我們的電話會議，我們知道 10 號的電話會議從 9 點開始，所以對於那些仍在參加我們電話會議的人來說。

We will now release you to jump on the pen call.

我們現在將允許你參加筆試。

But thank you for your support and we look forward to talking to you in a few months. Thanks.

但感謝您的支持，我們期待幾個月後與您交談。謝謝。

Ladies and gentlemen, which 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. You may now disconnect.

感謝大家的加入。您現在可以斷開連線。