Inspired Entertainment Inc (INSE) 2025 Q2 法說會逐字稿

Good morning, everyone, and welcome to the Inspired Entertainment second quarter 2025 conference call. (Operator Instructions) Please note, today's event is being recorded. Please refer to the company's safe harbor statement that appears in the second quarter 2025 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.

大家早安，歡迎參加 Inspired Entertainment 2025 年第二季電話會議。（操作員指示）請注意，今天的活動正在被記錄。請參閱本公司2025年第二季財報新聞稿中的安全港聲明，該聲明亦可在本公司網站www.inseinc.com的「投資者」版塊查閱。此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（SEC）規則被視為前瞻性的聲明。

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

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。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。

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.

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, and thanks, everyone, for joining our second quarter earnings call. With me today, as usual, are CEO, Brooks Pierce; CFO, James Richardson; and VP of Corporate Development, Eric Carrera. Also today, as you may have seen in our press release, we issued, I guess, last night, Investor Relations specialist, Aimee Remey, rejoins us following the two-year IR assignment with one of the world's leading B2C gaming enterprises.

謝謝您，接線生。早安，感謝大家參加我們的第二季財報電話會議。像往常一樣，今天與我一起的有首席執行官布魯克斯·皮爾斯 (Brooks Pierce)、首席財務官詹姆斯·理查森 (James Richardson) 和企業發展副總裁埃里克·卡雷拉 (Eric Carrera)。另外，正如您可能在我們的新聞稿中看到的那樣，我們昨晚發布了消息，投資者關係專家 Aimee Remey 在世界領先的 B2C 遊戲企業之一擔任了兩年的 IR 職務後，重新加入了我們。

And needless to say, we're thrilled to have Aimee back. We were quite pleased with the quarter in terms of headline numbers. EBITDA of $28.4 million was up 15% over Q2 2024 and well ahead of consensus. EBITDA margins improved from 33% to 35% in the same period. Our primary growth driver was once again the interactive business, which grew EBITDA by nearly 50% in the second quarter year-over-year. Interestingly, only about half excuse me, interestingly, about half the growth in EBITDA was contributed by North America, which represented less than one-third of interactive EBITDA a year ago. We believe that superior game content and intense focus on the account management were the underlying drivers of the North American performance.

不用說，我們很高興艾米回來了。就整體數據而言，我們對本季的表現非常滿意。EBITDA 為 2,840 萬美元，較 2024 年第二季成長 15%，遠超預期。同期，EBITDA 利潤率從 33% 提高至 35%。我們的主要成長動力再次是互動業務，該業務第二季的 EBITDA 年成長近 50%。有趣的是，大約只有一半，對不起，有趣的是，EBITDA 成長的一半來自北美，而北美在一年前佔互動 EBITDA 的比重不到三分之一。我們相信優質的遊戲內容和對帳戶管理的高度重視是北美業績的根本驅動力。

At the present time, less than 10% of the population of the United States is in jurisdictions that offer iGaming compared to sports betting, which covers at least 70% of the population. And in those major states that offer both sports betting and iGaming, particularly Pennsylvania, New Jersey and Michigan, iGaming is 4 times to 5 times larger than sports betting. So despite the remarkable growth that we've been experiencing recently, our feeling is that the Interactive business is still in its infancy. In other part of our digital business, Virtual Sports, there are similarly interesting dynamics at play.

目前，美國祇有不到 10% 的人口居住在提供 iGaming 的司法管轄區，而體育博彩則涵蓋了至少 70% 的人口。在那些同時提供體育博彩和 iGaming 的主要州，特別是賓夕法尼亞州、新澤西州和密西根州，iGaming 的規模是體育博彩的 4 到 5 倍。因此，儘管我們最近經歷了顯著的成長，但我們感覺互動業務仍處於起步階段。在我們的數位業務的另一部分——虛擬體育中，也存在著類似的有趣動態。

While second quarter Virtual Sports EBITDA declined year-to-year, the quarter-to-quarter sequential curve had been steadily flattening. And indeed, in the second quarter, we experienced both revenue and EBITDA increases from the first quarter to the second. In a moment, Brooks will discuss in some detail the range of product and market developmental opportunities taking place in Virtual Sports, but we're cautiously optimistic that the sequential upswing we saw in the second quarter will continue and that by the end of this year, we will once again be seeing quarterly year-over-year growth. This, of course, has a dramatic impact mathematically on our overall company growth rate.

儘管第二季虛擬體育 EBITDA 年比下降，但環比曲線卻一直穩定趨於平穩。事實上，在第二季度，我們的營收和 EBITDA 都從第一季成長到了第二季。稍後，布魯克斯將詳細討論虛擬體育領域出現的一系列產品和市場發展機會，但我們謹慎樂觀地認為，第二季度看到的連續上升趨勢將持續下去，到今年年底，我們將再次看到季度同比增長。當然，從數學角度來說，這對我們公司的整體成長率有著巨大的影響。

Our gaming business had a very strong quarter, both operationally and developmentally. Gaming EBITDA was up 35% year-to-year, driven importantly by William Hill, whose team has done an extraordinary job managing the new machine estate. Perhaps in part aided by the William Hill performance, we were recently awarded a contract to supply 100% of the gaming machines for Jenningsbet, the best performing and largest independent bookmaker chain in the UK, independent meaning not owned by Flutter, William Hill, Betfred or Entain. This was a very busy and very productive quarter for Inspired in other respects.

我們的遊戲業務在本季表現非常強勁，無論是營運還是發展。博彩業 EBITDA 同比增長 35%，其中威廉希爾 (William Hill) 發揮了重要作用，其團隊在管理新機器資產方面做得非常出色。也許部分得益於威廉希爾 (William Hill) 的出色表現，我們最近獲得了一份合同，為英國表現最佳、規模最大的獨立博彩連鎖店 Jenningsbet 供應 100% 的遊戲機，獨立意味著不屬於 Flutter、威廉希爾、Betfred 或 Entain。從其他方面來看，這對 Inspired 來說是一個非常忙碌且富有成效的季度。

During the quarter, as mentioned in the press release, we refinanced our credit facility prior to the date in June when the facility would otherwise have gone current. And despite the very choppy credit environment at that time, we were pretty happy with the result. Following the refinancing, we are in the final stages of arranging a swap of the floating rate Sterling facility into fixed rate debt, thereby both lowering our current effective rate and simultaneously capping it as insurance against rates going back up.

正如新聞稿中所提到的，在本季度，我們在 6 月份信貸額度到期之前對信貸額度進行了再融資。儘管當時信貸環境非常不穩定，但我們對結果還是相當滿意。再融資之後，我們正處於安排將浮動利率英鎊貸款互換為固定利率債務的最後階段，從而既降低當前的有效利率，又同時將其作為防止利率回升的保險。

At the same time, we still have two step-down opportunities to lower our spread over the Sterling benchmark as we deleverage with the first anticipated in connection with the expected completion of the Holiday Park sale subject to the customary grace period. In connection with the Holiday Park sale, I can say that we have now reached an agreement in principle with a strategic buyer we have been working with for several months, and we expect to sign the definitive agreement this month and close by the end of October.

同時，隨著我們去槓桿化，我們仍然有兩次降低英鎊基準利差的機會，第一次預計與假日公園銷售的預期完成有關，但須遵守慣常的寬限期。關於假日公園的出售，我可以說，我們現在已經與我們已經合作了幾個月的戰略買家達成了原則性協議，我們預計將於本月簽署最終協議，並於 10 月底完成交易。

The combination of cash at closing and ongoing platform and content fees will put us well within our liquidity target, and our cash position will benefit further from having owned the business through the peak cash trading generating period that we're in at the present time. The sale of the business will have a number of important benefits. Our overall company EBITDA margin will approach our target of 40%. Company-wide cash conversion percent will improve significantly, and our mix of business will swing further towards digital with concomitant benefits relating to margins, capital intensity and growth. And with that, I'll hand it over to Brooks.

交易結束時的現金和持續的平台及內容費用將使我們完全達到流動性目標，並且我們的現金狀況將因我們目前所處的現金交易高峰期而進一步受益。出售該業務將帶來許多重要的好處。我們公司整體的 EBITDA 利潤率將接近 40% 的目標。全公司範圍內的現金轉換率將大幅提高，我們的業務組合將進一步向數位化轉變，並帶來與利潤率、資本密集度和成長相關的伴隨效益。說完這些，我就把麥克風交給布魯克斯。

Okay. Thank you, Lorne. And I'll give a little bit more detail on our strong results in the quarter by segment and which we believe is building momentum as we move into the second half of the year. A big part of that confidence is based on the results in the second quarter for our Interactive segment and what we're already seeing thus far in Q3.

好的。謝謝你，洛恩。我將更詳細地介紹我們各部門在本季度取得的強勁業績，我們相信，隨著進入下半年，這些業績將不斷增強。這種信心很大程度上基於我們互動部門第二季的業績以及我們在第三季迄今為止所看到的情況。

To put it in context, we had the single best day in our history in this segment last week, and it's broad-based across our key markets in the UK, North America and Greece. But we're also starting to see growth in other key markets like Brazil as we get launched with additional operators and start delivering bespoke content to that market, alongside a very strong road map of gains for the second half of the year.

具體來說，上週我們在這一領域取得了歷史上最好的成績，而這一成績廣泛涵蓋了我們在英國、北美和希臘等主要市場。但隨著我們與其他業者合作並開始向巴西等其他主要市場提供客製化內容，我們也開始看到該市場的成長，同時我們也制定了下半年非常強勁的成長路線圖。

Q2 saw our eighth consecutive quarter of more than 40% year-over-year adjusted EBITDA growth. and a further expansion of our adjusted EBITDA margin by 200 basis points to 67%, which we believe clearly demonstrates the scalability and operating leverage from this part of the business. We're seeing the benefits of the investments we've made in studio expansions as well as a deeper base of account management talent delivering on this investment, but we feel we have considerable room for further growth as our wallet share in our key markets is still in the single digits, but growing quarter-by-quarter.

第二季度，我們的調整後 EBITDA 年成長已連續八個季度超過 40%，調整後 EBITDA 利潤率進一步擴大 200 個基點至 67%，我們認為這清楚地證明了該部分業務的可擴展性和營運槓桿。我們看到了在工作室擴張方面進行的投資以及更深層次的客戶管理人才基礎所帶來的好處，但我們認為我們還有相當大的成長空間，因為我們在主要市場的錢包份額仍然為個位數，但逐季度增長。

The other part of the Interactive segment that we remain bullish on is the hybrid dealer category. Like the Interactive segment, the key to success in this part of the business is getting your product out across a wide swath of both operators and aggregators across multiple geographies with differentiated content that resonates with players. Using those metrics as benchmark, we're happy with the progress we are seeing in Hybrid Dealer, but still feel it's very early in its development.

我們仍然看好的互動領域中的另一個部分是混合經銷商類別。與互動部分一樣，這項業務部分的成功關鍵在於將您的產品推廣到多個地區的眾多營運商和聚合商，並提供能引起玩家共鳴的差異化內容。以這些指標為基準，我們對混合經銷商所取得的進展感到滿意，但仍覺得它還處於發展的早期階段。

We're now deployed with multiple versions of our Roulette game and our game show themed wheel games and are starting to see the possibilities as we expand our product offerings across our key markets. A good example of that will be the game we'll be introducing with FanDuel in September that we're very excited about and think will appeal to a good cross-section of both casino players as well as sports betters. We won't give any more details about that, but we'll look forward to reporting on its progress in our third quarter call.

我們現在已經部署了多個版本的輪盤遊戲和遊戲節目主題輪盤遊戲，並且隨著我們在主要市場擴大產品供應，我們開始看到各種可能性。一個很好的例子就是我們將於 9 月與 FanDuel 合作推出的遊戲，我們對此感到非常興奮，並認為它將吸引大量賭場玩家和體育博彩玩家。我們不會透露更多有關細節，但我們期待在第三季電話會議上報告其進展。

Virtual Sports segment, as we've talked about frequently, has stabilized and even showed modest growth in the second quarter. The segment of the business has strong EBITDA margins, 72% in the second quarter and strong cash contribution due to the nature and maturity of the business, but we'll also be introducing some product innovations in the third and fourth quarter that we believe will resonate with players in key markets like Brazil, Greece and the UK.

正如我們經常談到的，虛擬體育領域在第二​​季度已經穩定下來，甚至還出現了適度的成長。該業務部門擁有強勁的 EBITDA 利潤率，第二季度為 72%，並且由於業務的性質和成熟度而貢獻了強勁的現金，但我們還將在第三季度和第四季度推出一些產品創新，我們相信這些產品創新會引起巴西、希臘和英國等主要市場參與者的共鳴。

Our bespoke soccer game for the Brazil market is resonating with our two biggest customers in that market, and we are in the midst of rolling our Virtual Sports content out to other key operators in that market, including BetMGM and EstrelaBet. And again, we'll update in our third quarter call as we'll be adding several additional operators yet this quarter. We launched our Virtual Sports content in the lottery vertical with the Virginia lottery. And although it's early, we're seeing the business build up as lottery players are introduced to it.

我們為巴西市場量身定制的足球遊戲引起了該市場兩個最大客戶的共鳴，並且我們正在向該市場的其他主要營運商推出我們的虛擬體育內容，包括 BetMGM 和 EstrelaBet。再次，我們將在第三季電話會議上進行更新，因為我們將在本季增加幾名額外的營運商。我們與維吉尼亞州彩票合作，在彩票垂直領域推出了虛擬體育內容。儘管還處於早期階段，但隨著彩票玩家逐漸接觸到彩票，我們看到其業務正在不斷發展。

Our horse racing game, in particular, is currently seeing the most activity, but we're confident that as we move into the football and basketball seasons, those sports will only grow. We think the lottery segment is a key and underappreciated vertical for us, and we'll be reporting on our progress in that segment further throughout the year. We continue to believe that we'll see demonstrable improvements in this segment in the second half versus the first half as we are live in more markets and introduce our latest innovations.

我們的賽馬比賽目前最活躍，但我們相信，隨著足球和籃球賽季的進入，這些運動項目只會發展壯大。我們認為彩票領域是我們的關鍵且被低估的垂直領域，我們將在全年進一步報告我們在該領域的進展。我們仍然相信，隨著我們進入更多市場並推出最新創新，與上半年相比，下半年這一領域將出現明顯改善。

Gaming segment had a strong second quarter with adjusted EBITDA increasing 35% year-over-year due in large part to the improvement in the results with William Hills, we've talked about for months now, and we see these coming through. We're also starting to see the early benefits of our new cabinets being deployed in Greece, and that will only accelerate and continue in the second half and into 2026.

博彩業第二季度表現強勁，調整後 EBITDA 同比增長 35%，這在很大程度上得益於威廉希爾 (William Hills) 業績的改善，我們幾個月來一直在談論這一點，我們看到這些改善正在實現。我們也開始看到我們的新內閣在希臘部署所帶來的早期好處，而這種好處只會在下半年和 2026 年加速並持續下去。

The quarter also benefited from a sale to the Alberta Gaming and Lottery Group, a key customer as we expand our VLT offerings across multiple provinces in Canada as well as our footprint and subscription sales growing in our key market in Illinois and as we've introduced the Valiant cabinet to that market. We were also very pleased to be awarded a new contract with Jenningsbet, the largest independent bookmaker in the UK, and we'll start to see the benefit of that by the end of the year, but mostly as we move into 2026.

本季也受惠於向阿爾伯塔博彩和彩券集團的銷售，該集團是我們的關鍵客戶，因為我們將 VLT 產品擴展到加拿大多個省份，同時我們在伊利諾伊州的主要市場覆蓋範圍和訂閱銷售額也在增長，並且我們已將 Valiant 機櫃引入該市場。我們也很高興與英國最大的獨立博彩公司 Jenningsbet 簽訂了一份新合同，我們將在今年年底開始看到這份合約帶來的好處，但主要是在進入 2026 年之後。

We're confident that our VLT cabinets and content are working across multiple geographies and that our server-based offering appeals to operators in markets where customers frequent venues multiple times a week and need the appeal of refreshing content on a regular basis and we believe there are many more markets for us to target to leverage the success we're seeing in the UK, Greece and North America.

我們相信，我們的 VLT 機櫃和內容可以在多個地區使用，並且我們基於伺服器的產品可以吸引那些客戶每週多次光顧場所並需要定期更新內容的市場的運營商，我們相信，我們可以瞄準更多的市場，以利用我們在英國、希臘和北美取得的成功。

The Leisure segment performed as expected and is in the process of a structural transformation as we complete the anticipated sale of the holiday parks part of the leisure segment and also move our pubs business to a more capital-light and less labor-intensive model. We believe that this aligns with what we've accomplished in the Gaming segment and will offer us the opportunity to deploy our capital in the higher growth and higher-margin digital segments of our business while still capitalizing on our key strengths of development and deployment of content as well as innovative new cabinets.

休閒部門的表現符合預期，並且正處於結構轉型過程中，因為我們完成了休閒部門度假公園部分的預期出售，並將我們的酒吧業務轉向資本更輕、勞動密集程度更低的模式。我們相信，這與我們在遊戲領域的成就一致，並將為我們提供機會，將我們的資本部署到我們業務中增長更快、利潤更高的數位領域，同時仍然利用我們在內容開發和部署以及創新型新機櫃方面的關鍵優勢。

Lastly, we're seeing the benefits of some of our cost improvements and efficiencies coming through with our EBITDA margin increasing by 200 basis points for the overall business year-over-year, but are confident that once we complete the leisure segment initiatives mentioned previously that we'll be comfortably ahead of our target EBITDA margins of 40%. Special thanks to our team for all their hard work, and we feel positively that the results are reflecting that. And with that, I'll hand it back over to Lorne.

最後，我們看到一些成本改進和效率提高帶來的好處，我們的整體業務的 EBITDA 利潤率同比增長了 200 個基點，但我們有信心，一旦我們完成前面提到的休閒部門計劃，我們將輕鬆超過 40% 的目標 EBITDA 利潤率。特別感謝我們團隊的辛勤工作，我們確信結果也反映了這一點。說完這些，我就把它交還給洛恩。

Thanks, Brooks. That was a great report. I don't have anything further to say. So operator, you can open the program up to Q&A, please.

謝謝，布魯克斯。那是一份很棒的報告。我沒有什麼要說的了。接線員，請您開啟程式進行問答。

(Operator Instructions)

（操作員指示）

Barry Jonas, Truist Securities.

巴里·喬納斯（Barry Jonas），Truist Securities。

Hey, good morning, everyone, and Welcome back, Aimee. This is Patrick Keough on for Barry this morning. I was hoping you could talk a little bit more about the momentum you're seeing in Hybrid Dealer. In your release, you stated you're gaining traction with regional operators who had traditionally lacked access. Could you give a little more color here and talk about the potential upside for the product and where it could be?

嘿，大家早上好，歡迎回來，艾米。今天早上，帕特里克·基奧 (Patrick Keough) 代替巴里 (Barry) 發言。我希望您能再多談談您在 Hybrid Dealer 中看到的發展勢頭。在您的新聞稿中，您表示您正在與傳統上缺乏訪問權限的地區運營商建立聯繫。您能否更詳細地介紹一下該產品的潛在優勢以及它可能的應用領域？

Sure. Yeah. It's interesting. What we're seeing is we have a very good mix of customers. We have the large Tier 1 customers, but we also have a number of what we would call kind of Tier 2 customers, many of which are through aggregators, Relax being the principal one, but we've just finished an integration with Games Global, and we'll start rolling out to their customers as well. So interestingly, some of the things that we had anticipated, the roulette game in particular, and the wheel games are doing very well.

當然。是的。這很有趣。我們看到的是，我們擁有非常好的客戶組合。我們擁有大型一級客戶，但也有許多所謂的二級客戶，其中許多是透過聚合器獲得的，Relax 是主要客戶，但我們剛完成與 Games Global 的整合，我們也將開始向他們的客戶推出產品。有趣的是，我們預期的一些東西，特別是輪盤遊戲和輪盤遊戲都表現得非常好。

I would say the 4-ball roulette game is not doing as well as we had expected, which kind of lends itself to what I had talked about in terms of product innovation. So for those of you that are out of G2E, I think it will be important for you to come by our booth and take a look at some of the stuff that we're showing, we think will accentuate some of the key brands that we've had in the interactive business successfully. So good news is the number of players, the volume, the customers, geographies are all kind of increasing on pretty much a week-by-week basis, and we'll start reporting those numbers in a little bit more detail going forward. But we're very happy with how it's progressing so far.

我想說的是，四球輪盤遊戲的表現並不像我們預期的那麼好，這與我之前談到的產品創新有關。因此，對於那些不在 G2E 展會現場的人來說，我認為你們有必要來我們的展位看看我們展示的一些東西，我們認為這些將突出我們在互動業務中成功擁有的一些關鍵品牌。好消息是，玩家數量、交易量、客戶和地理幾乎每週都在增加，我們將開始更詳細地報告這些數字。但我們對目前的進展感到非常滿意。

That's great. And as my follow-up, you had pointed out that Virtual Sports saw a sequential improvement in EBITDA. It's good to see a return to growth there. Last quarter, you had stated that Q3 could potentially be -- potentially see a year-over-year increase in EBITDA and be an inflection point for the business. Is that still the case?

那太棒了。作為我的後續提問，您指出虛擬體育的 EBITDA 連續改善。很高興看到那裡恢復增長。上個季度，您曾表示第三季的 EBITDA 可能會年增，並成為業務的轉捩點。現在還是這樣嗎？

I would say maybe Q3, but probably more likely Q4. There's a number of variables. We're getting some products out that we probably are getting out a little bit later in the quarter than we would have hoped. So it might not be exactly Q3, might be Q4.

我認為可能是第三季度，但更有可能是第四季。有很多變數。我們正在推出一些產品，但可能在本季推出的時間比我們預期的要晚一些。所以它可能不完全是 Q3，可能是 Q4。

But yes, that's certainly the target that we're having is seeing good growth from the existing customers, adding more customers, as I talked about, particularly in Brazil, which is a very robust market and then introducing some new products, again, another thing to come see G2E that nobody has seen yet, and our customers are pretty excited for it. So hopefully, Q3, but probably more likely Q4.

但是的，這確實是我們的目標，即看到現有客戶的良好增長，增加更多客戶，正如我所說的，特別是在巴西，這是一個非常強勁的市場，然後推出一些新產品，再次，另一件事是看到 G2E，這是還沒有人見過的，我們的客戶對此非常興奮。所以希望是第三季度，但更有可能是第四季。

Sounds good thank you very much I appreciate it.

聽起來不錯，非常感謝，我很感激。

Sure thing.

當然可以。

Ryan Sigdahl, Craig-Hallum.

瑞安·西格達爾、克雷格·哈勒姆。

Good morning. This is Will Yager on for Ryan Sigdahl. First wanted to touch on your gaming segment. You've seen really good momentum kind of with William Hill as you were talking about. You just added Jenningsbet as well. Curious what you're hearing from other customers in terms of the Vantage cabinets and if this is maybe just the start of kind of a greater expansion there?

早安.這是 Will Yager 為 Ryan Sigdahl 主持的節目。首先想談談您的遊戲部分。正如您所說的，您已經看到威廉希爾 (William Hill) 的發展勢頭非常好。您剛剛也加入了 Jenningsbet。好奇您從其他客戶那裡聽到了有關 Vantage 機櫃的什麼評價，以及這是否只是更大擴展的開始？

Well, I mean, obviously, we're getting very positive feedback from the results from the Vantage cabinet that we've been talking about for a while now with all our customers. I know evoke specifically mentioned in their call, William Hill, specifically mentioned in their call the improvement in their retail business, and they attributed that mostly to the Vantage cabinet. Jenningsbet is a big win for us. It's a customer that was with one of our competitors for about 20 years.

嗯，我的意思是，顯然，我們從 Vantage 機櫃的結果中得到了非常積極的回饋，我們已經與所有客戶討論了一段時間了。我知道 evoke 在電話會議中特別提到了威廉希爾 (William Hill)，他們在電話會議中特別提到了零售業務的改善，他們把這主要歸功於 Vantage 內閣。Jenningsbet 對我們來說是一個巨大的勝利。這是我們的一個競爭對手的客戶，合作了大約 20 年。

So the fact that they've made the decision to do business with us after that length of time, I think, bodes very well for the cabinet. In the UK LBO business, there's really kind of two of us that split the market. So I don't see a huge opportunity because of the length of the contracts for growth other than the ones that we've picked up. But the Vantage cabinet is out in multiple other markets, both on a recurring basis and on a for-sale basis. It's the cabinet that we're rolling out in Greece or one of the cabinets we're rolling out in Greece. So yes, the summary is we're very happy with the Vantage and how it's doing in pretty much every market we put it in.

因此，我認為，經過這麼長時間後，他們決定與我們做生意，這對內閣來說是一個好兆頭。在英國的槓桿收購業務中，其實有兩種公司分割了市場。因此，除了我們已經簽訂的合約之外，由於合約期限較長，我並不認為存在巨大的成長機會。但 Vantage 櫥櫃已在其他多個市場銷售，既有定期銷售的，也有待銷售的。這是我們在希臘推出的內閣，或是我們在希臘推出的內閣之一。所以，是的，總結一下，我們對 Vantage 非常滿意，而且它在我們投放的幾乎所有市場中都表現良好。

Great. And then a follow-up quickly on Brazil. It's a bit of a tough start at the beginning of the year. What do you think the factors for that? How those changed going into Q3? You're live with both of the market leaders, continue to add a lot of partners for Virtual Sports. Are there just certain games that people are maybe engaging with more? Or how is it developing there?

偉大的。然後快速跟進巴西的情況。今年年初有點艱辛。您認為造成這現象的因素有哪些？進入第三季後，這些情況發生了怎樣的變化？您與兩大市場領導者合作，繼續為虛擬體育增加大量合作夥伴。是否有某些特定的遊戲可能會吸引更多的玩家？或是那裡發展得怎麼樣？

Yeah. I mean I think it's the story in Brazil in Virtual Sports, but frankly, in iGaming as well is the beginning of the year was very choppy with moving from a nonregulated to a regulated market. But now that we're seeing customers and they see our product on a regular basis. And as we add both customers that we go direct and also through aggregators, we're just starting to see both in the Virtual Sports side, but also on the iGaming side starting to get some traction.

是的。我的意思是，我認為這是巴西虛擬體育的故事，但坦白說，在 iGaming 領域也是如此，今年年初從不受監管的市場轉向受監管的市場非常不穩定。但現在我們見到了客戶，他們也經常看到我們的產品。隨著我們直接接觸的客戶和透過聚合器接觸的客戶不斷增加，我們不僅開始看到虛擬體育方面，而且 iGaming 方面也開始獲得一些關注。

In particular, we've made a game of virtual soccer game that is really kind of more Brazil feeling fireworks in the stands and all kinds of crazy fan stuff that seems to be resonating with the players and obviously, in the native language, Portuguese as well. So and we've as I mentioned, we've got a couple of innovations that we're going to be bringing to the market here in the third and fourth quarter that we think will actually drive that even further. So Brazil is obviously a very key market for us in Virtual Sports, but kind of a key market overall.

特別是，我們製作了一款虛擬足球遊戲，它確實更有巴西的感覺，看台上的煙火和各種瘋狂的球迷活動似乎引起了球員的共鳴，顯然，也用母語葡萄牙語表達了出來。正如我所提到的，我們將在第三季和第四季將一些創新推向市場，我們認為這些創新實際上將進一步推動這一發展。因此，巴西顯然是我們虛擬體育領域非常關鍵的市場，但總體而言也是一個關鍵市場。

Thanks guys.

謝謝大家。

You're welcome.

不客氣。

Josh Nichols, B. Riley Securities.

喬許‧尼可斯 (Josh Nichols)，B. Riley 證券。

Hi, this is Matthew I for Josh Nichols. Thanks for taking my questions. I guess just going back to the gaming side. Gaming EBITDA up impressively. You mentioned William Hill and some Greece ramping. What do you think drives the next leg of growth maybe, I guess, to push that more in 2026?

大家好，我是 Josh Nichols 的 Matthew I。感謝您回答我的問題。我想只是回到遊戲方面。遊戲 EBITDA 大幅成長。您提到了威廉希爾和希臘的一些動向。您認為推動下一輪成長的因素是什麼，也許在 2026 年會進一步推動這一成長？

Yeah. I mean I think there's well, as I mentioned in my remarks, so I think it's really a combination of a couple of things. One is some of the existing customers that we have. The Canadian provinces are a great opportunity for us to add sales. I mean, obviously, the second quarter was benefited by a onetime sale to Alberta. But between all the other Canadian provinces we do business with, we think that, that's a good opportunity.

是的。我的意思是，正如我在評論中提到的那樣，我認為這實際上是幾件事的結合。一是我們現有的一些客戶。加拿大各省對於我們增加銷售額來說是一個絕佳的機會。我的意思是，顯然，第二季度受益於對阿爾伯塔省的一次性銷售。但我們認為，對於與我們有業務往來的所有其他加拿大省份來說，這是一個很好的機會。

In Illinois, we've been very successful selling subscriptions to our customers because they want to continue to refresh their content. But Illinois is approaching now a 40,000 machine market, and the replacement cycle is really just in its early days. So that's a market for sure that we'll be going after. And then as I mentioned in my remarks, we think what we're good at is where we can download content and refresh content and where people are going server-based gaming, where people are going to a venue multiple times a week.

在伊利諾州，我們在向客戶銷售訂閱方面非常成功，因為他們希望繼續更新其內容。但伊利諾州目前的機器市場規模已接近 40,000 台，而更換週期實際上才剛開始。因此我們一定會進軍這個市場。正如我在演講中提到的那樣，我們認為我們擅長的是下載內容和刷新內容，以及人們進行基於伺服器的遊戲，人們每週多次前往某個場所。

So there's many markets outside of the key markets that we've already talked about that we think will have a good opportunity. And I'm sure you probably read in the press, there's lots of discussion about Brazil as potentially a huge machine market. If that were to come to fruition, we think our product would be a perfect fit for the Brazil market. So yes, I mean, we think we're kind of hitting on both cylinders and that the existing business is showing good growth and good opportunity out of our existing customers, but we feel very confident that there's additional markets that we can go after that our product will fit very nicely in.

因此，除了我們已經討論過的關鍵市場之外，我們認為還有很多市場也將擁有良好的機會。我相信您可能在媒體上看到很多關於巴西作為潛在巨大機械市場的討論。如果這一目標得以實現，我們認為我們的產品將非常適合巴西市場。所以是的，我的意思是，我們認為我們正在同時進行兩個方面的工作，現有業務正在從現有客戶中顯示出良好的成長和良好的機會，但我們非常有信心，我們可以開拓更多的市場，我們的產品將非常適合這些市場。

Very helpful. And I guess kind of similar on the Hybrid Dealer front, I mean you mentioned multiple geographies and it seems like there's such a large TAM. I'm just wondering which new international markets do you think look promising for the next year or so?

非常有幫助。我想混合經銷商方面的情況也類似，我的意思是您提到了多個地區，而且似乎有如此大的 TAM。我只是想知道您認為未來一年左右哪些新的國際市場看起來很有前景？

Well, it's so early in the process. I mean, I think pretty much every market is new. I mean, I would say the existing markets where we are, North America, UK, Greece, but we're still in the very early stages of getting the product out to those markets, Brazil. But I don't see any gaming market where Hybrid Dealer is not an offering that makes sense. Now I mentioned the game that we're doing with FanDuel. And that's a very bespoke game that we're building for them that we've been working on that for probably close to a year. So we're pretty excited about seeing that out in September.

嗯，這個過程還處於早期階段。我的意思是，我認為幾乎每個市場都是新的。我的意思是，我想說我們現有的市場是北美、英國、希臘，但我們仍處於將產品推向巴西這些市場的早期階段。但我認為，混合經銷商在任何一個遊戲市場都是合理的選擇。現在我提到了我們與 FanDuel 合作製作的遊戲。這是我們為他們打造的一款客製化遊戲，我們為此已經工作了將近一年。因此，我們非常高興能夠在九月看到這項成果。

But I think just the general rolling out of the product across more and more markets, very similar to the iGaming business. I mean it's what we saw in iGaming. If you look way back a number of years ago, it took the combination of getting the kind of network wired with all the customers and then making sure you have content that resonates with the players.

但我認為，該產品將在越來越多的市場上推出，與 iGaming 業務非常相似。我的意思是，這就是我們在 iGaming 中看到的。如果你回顧幾年前，你會發現你需要將網路與所有客戶連結起來，並確保你的內容能夠引起玩家的共鳴。

And to me, I think the parallels between the iGaming segment and the Hybrid Dealer are very stark. And so we're just in the early stages. You're seeing the benefit of how that's working for us in iGaming. And obviously, I don't know if it will reach the size and scale of the iGaming segment, but it certainly has all the characteristics and attributes that we look for very similar to iGaming.

對我來說，我認為 iGaming 部分和混合經銷商之間的相似之處非常明顯。所以我們才處於早期階段。您將看到它在 iGaming 中為我們帶來的好處。顯然，我不知道它是否能達到 iGaming 領域的規模，但它肯定具備我們所尋找的與 iGaming 非常相似的所有特徵和屬性。

Got it. And last one for me. I mean just on the sort of capital deployment side. I mean, you had a strong quarter of free cash flow generation. You're expecting to close that holiday park sale soon and with the new debt facility also, I just -- I'm wondering like what in terms of priorities, where does -- where are you ranking things in terms of maybe just focusing on accelerating Hybrid Dealer Roulette or anything else?

知道了。對我來說這是最後一個。我指的是資本部署方面。我的意思是，本季你們的自由現金流產生強勁。您預計很快就會結束假日公園的銷售，而且還有新的債務融資，我只是 - 我想知道，就優先事項而言，您在哪裡進行排名，可能只是專注於加速混合經銷商輪盤賭或其他任何事情？

I'm not sure I understand exactly what the question is. Can you please ask it again?

我不確定我是否明白這個問題到底是什麼。你能再問一次嗎？

Yes. So in terms of focusing on and investing in growth for a certain segment, where do you think -- where are you ranking your priorities? Is it mainly something Hybrid Dealer Roulette...

是的。那麼，在關注和投資某個細分市場的成長方面，您認為您的優先事項排名如何？主要是混合莊家輪盤賭嗎？

Yes. Well, the interesting thing about all the digital business, Hybrid Dealer, but iGaming in particular, and Virtual Sports is that the capital intensity is so low that our growth in those areas is really not constrained by capital at all. We can grow almost as fast as we want. The constraints are like Brooks was talking about right now, we're in the process of doing integrations with Hybrid Dealer with some of the new customers. So we're not too concerned about that.

是的。嗯，所有數位業務、混合經銷商、特別是 iGaming 和虛擬運動的有趣之處在於，資本密集度非常低，以至於我們在這些領域的成長實際上根本不受資本的限制。我們幾乎可以按照自己想要的速度成長。這些限制就像布魯克斯現在談論的那樣，我們正在與 Hybrid Dealer 和一些新客戶進行整合。所以我們對此並不太擔心。

I think what I thought your question was, was more about what people today are calling capital allocation in terms of what our priorities were with the free cash flow that we're really beginning to see coming. And if that was sort of the question, then obviously, our first priority is always going to be funding the growth of the businesses. But again, as we swing to more and more digital, the capital required to do that becomes less and less.

我認為你的問題更多的是關於今天人們所說的資本配置，就我們真正開始看到的自由現金流而言，我們的優先事項是什麼。如果這是問題的話，那麼顯然，我們的首要任務始終是為企業發展提供資金。但隨著我們越來越走向數位化，所需的資本變得越來越少。

So I'd say in the short run, after that, our first priority would be debt reduction because in the deal that we did a couple of months ago to refinance our debt, we have significant benefits by deleveraging. So we want to get that done first. And then everybody always wants to know about share repurchases. We still have a program in place. And I would say after the priority of funding our business growth and then the priority of deleveraging that we would certainly consider share repurchase.

因此我想說，從短期來看，我們的首要任務是減少債務，因為在幾個月前我們達成的債務再融資協議中，我們通過去槓桿獲得了顯著的收益。因此我們希望首先完成這一點。然後每個人都想了解股票回購的情況。我們仍有一個計劃在實施中。我想說，在優先為我們的業務成長提供資金並優先去槓桿之後，我們肯定會考慮股票回購。

Got it, yeah. It was a mix of both, so you answered my questions. Thank you.

明白了，是的。兩者兼而有之，所以你回答了我的問題。謝謝。

Chad Beynon, Macquarie.

麥格理銀行的查德貝農 (Chad Beynon)。

Hi, good morning. Thanks for taking my question. Brooks, I wanted to start with virtual and the positive inflection that you talked about in the fourth quarter. Do you think as we look past this maybe more into '26, this could return to a growth market, maybe not as high growth as we saw in the past couple of years, but is this something that we should start to think about again growing maybe at the same as some of the global digital rates?

嗨，早安。感謝您回答我的問題。布魯克斯，我想從虛擬和你在第四季談到的積極轉變開始。您是否認為，當我們展望 2026 年時，這個市場可能會恢復成長，雖然成長速度可能不如過去幾年高，但我們是否應該開始考慮再次實現與全球數位利率相同的成長？

Yeah. Thanks, Chad. Yes, I mean I think the drivers of that are going to be how we roll out in some of the markets like we've talked about in Brazil, but really North America as well. It's kind of one of the bane of my existence that we haven't gotten as much traction in the North American market as I think we should have, and I think we will. It's just taken longer than I expect or expected.

是的。謝謝，乍得。是的，我認為推動這一趨勢的因素將取決於我們如何在一些市場推出產品，例如我們在巴西談到的，但實際上在北美也是如此。我覺得我們在北美市場沒有取得應有的進展，這是我生活中的一大痛點，但我認為我們會的。這只是比我預期或預期的時間要長。

But yes, I mean, I think if we get rolled out to -- we kind of have half the market right now in Brazil. And as we roll out to the other half, the second half is anywhere as good as the first half, that's going to be a very, very meaningful contribution to the business. As I mentioned, we've seen some success -- early success with the Virginia lottery, and we're bullish about a couple more opportunities we're looking at in the lottery vertical that we think will also add.

但是的，我的意思是，我認為如果我們推廣到——我們現在在巴西擁有一半的市場。當我們推廣到另一半時，下半部的表現與上半部一樣好，這將對業務產生非常非常有意義的貢獻。正如我所提到的，我們已經看到了一些成功——弗吉尼亞州彩票的早期成功，我們對彩票垂直領域中正在考慮的更多機會也充滿信心，我們認為這些機會也會增加。

But we also need to get some better penetration in the North American market with BetMGM should be the first customer that will go out in the market first, but we see it as a reasonable market for some of the other operators to add. So yes, long-winded answer is, yes, I'm hoping that we're building momentum each of the next couple of quarters and that '26 will get us back on a real growth trajectory, not just stabilized and beating slightly.

但我們也需要在北美市場取得更好的滲透率，BetMGM 應該是第一個進入該市場的客戶，但我們認為對於其他一些營運商來說，這是一個合理的市場。所以是的，冗長的回答是，是的，我希望我們在接下來的幾個季度中都能積聚動力，並且 26 年將使我們回到真正的增長軌道上，而不僅僅是穩定和略有增長。

Great. And then on the hardware side, now that some of these competitive privatizations have closed, have you seen anything in terms of just the competition out there positively or negatively? Are there more deals that are being done on the hardware side or some of these private companies potentially pulling back a little bit and kind of focusing on something different? I know it's very early, but wondering if you're seeing anything at this point.

偉大的。那麼在硬體方面，現在一些競爭性的私有化已經結束，您是否看到競爭方面有什麼積極或消極的影響？硬體方面是否有更多交易正在進行，或者其中一些私人公司可能會稍微退出並專注於其他領域？我知道現在還為時過早，但我想知道您現在是否看到了什麼。

Yes. I think your -- the last part of your statement is right. I think it's very early. I mean, I think the -- well, IGT would be probably the one that we would compete with the most because of their strength in the Canadian provinces. But obviously, Illinois is a pretty competitive market. And we actually just went through a whole big review on the Illinois business, and we're indexing higher than we've ever indexed in Illinois.

是的。我認為你的陳述的最後一部分是正確的。我認為現在還很早。我的意思是，我認為——IGT 可能是我們最有可能的競爭對手，因為他們在加拿大各省實力雄厚。但顯然，伊利諾州是一個競爭相當激烈的市場。事實上，我們剛剛對伊利諾伊州的業務進行了一次全面的審查，我們的指數比伊利諾伊州的歷史最高水平還要高。

So I feel very good about our chances in the replacement market, recognizing that our competition is pretty steep, but they're going through some transitions. So we would -- we're going aggressively after every one of those markets. But we're just not in the same -- we're not in the Class III market or the Class II market where you would see some of those companies you mentioned as that's their primary markets, and it's really not ours. So we don't go head-to-head with them other than Illinois and the Canadian provinces. But to answer your question, I haven't seen any substantive changes at this point.

因此，我對我們在替代市場的機會感到非常樂觀，並認識到我們的競爭相當激烈，但他們正在經歷一些轉型。所以我們會積極進軍每個市場。但我們並不處於同一水平——我們不在第三類市場或第二類市場，在這些市場中，您會看到您提到的一些公司，因為那是他們的主要市場，而這實際上不是我們的。因此，除了伊利諾州和加拿大各省以外，我們不會與他們正面交鋒。但回答你的問題，目前我還沒有看到任何實質的改變。

Thank you. Nice quarter, guys. Thanks, Chad.

謝謝。大家，這個季度過得真不錯。謝謝，乍得。

There are no further questions from the line at this time. I will now turn the call back over to Mr. Lorne Weil for any closing remarks.

目前，沒有其他問題。現在我將把電話轉回給洛恩·威爾先生，請他做最後發言。

Thanks, operator. I don't really have too much to add to what we've talked about so far. I think it's a very good quarter. I think we're feeling pretty positive about the rest of the year that we'll continue to see these trends moving in that same direction. And so we look forward to talking to everybody in a few months. Thanks.

謝謝，接線生。對於我們目前為止討論的內容，我真的沒有太多要補充的。我認為這是一個非常好的季度。我認為我們對今年剩餘時間的前景非常樂觀，我們將繼續看到這些趨勢朝著同一方向發展。因此，我們期待幾個月後與大家交談。謝謝。