Loading...
01/11 03:19
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance with a 15% increase in EBITDA and improved margins, driven by growth in the interactive segment. Despite some challenges, such as delays in product launches affecting Q3 expectations, management remains optimistic about future growth, particularly in Brazil and new product innovations. Positive feedback on new products like Vantage cabinets and strategic market expansions further support a positive outlook. Shareholder return strategies, like potential share repurchases, also contribute to a positive sentiment. The Q&A session reinforced management's confidence, despite some vague responses regarding capital deployment.
EBITDA $28.4 million, up 15% over Q2 2024. The increase was driven by the interactive business, which grew EBITDA by nearly 50% year-over-year, with North America contributing significantly due to superior game content and intense account management focus.
EBITDA Margins Improved from 33% to 35% year-over-year. This improvement is attributed to the growth in the interactive business and operational efficiencies.
Interactive Segment EBITDA Achieved over 40% year-over-year adjusted EBITDA growth for the eighth consecutive quarter, with a further expansion of adjusted EBITDA margin by 200 basis points to 67%. This growth is due to investments in studio expansions and account management talent.
Virtual Sports EBITDA Declined year-over-year but showed sequential growth from Q1 to Q2. The segment has strong EBITDA margins of 72% in Q2, and the decline is attributed to market dynamics, though new product innovations are expected to drive future growth.
Gaming Segment EBITDA Increased by 35% year-over-year, driven by improved results with William Hill and the deployment of new cabinets in Greece. Sales to Alberta Gaming and Lottery Group and subscription sales in Illinois also contributed.
Overall EBITDA Margin Increased by 200 basis points year-over-year, reflecting cost improvements and efficiencies.
Interactive Business Growth: EBITDA grew by nearly 50% year-over-year in Q2 2025, driven by superior game content and account management. North America contributed significantly to this growth.
Hybrid Dealer Category: Progress in deploying Roulette and game show-themed wheel games across multiple geographies. A new game with FanDuel is set to launch in September.
Virtual Sports Innovations: New product innovations, including a bespoke soccer game for Brazil and Virtual Sports content for the Virginia lottery, are being introduced.
Gaming Cabinets: New cabinets are being deployed in Greece and Canada, with the Valiant cabinet introduced in Illinois.
North American Market Expansion: North America now represents a significant portion of Interactive EBITDA, growing from less than 1/3 to nearly half.
Brazilian Market: Growth in Brazil with bespoke content and partnerships with operators like BetMGM and EstrelaBet.
Lottery Vertical: Virtual Sports content launched with the Virginia lottery, showing early positive signs.
EBITDA Margin Improvement: Overall EBITDA margin increased by 200 basis points year-over-year to 35%.
Cost Efficiencies: Cost improvements and efficiencies contributed to margin growth, with a target of exceeding 40% EBITDA margin post-leisure segment restructuring.
Leisure Segment Transformation: Sale of the holiday parks business and shift to a capital-light model for the pubs business to focus on higher-margin digital segments.
Refinancing and Debt Management: Refinanced credit facility and arranged a swap to fixed-rate debt, improving financial stability.
Interactive Business Growth: Despite strong growth, the Interactive business is still in its infancy, with less than 10% of the U.S. population in jurisdictions offering iGaming. This presents a challenge in scaling operations and capturing market share.
Virtual Sports Segment: The segment has stabilized but experienced a year-over-year EBITDA decline. While sequential growth is promising, the segment faces challenges in maintaining consistent growth and introducing successful product innovations.
Credit Facility Refinancing: The company refinanced its credit facility in a volatile credit environment, which could pose risks if market conditions worsen or if the anticipated benefits from the refinancing do not materialize.
Holiday Park Sale: The sale of the Holiday Park business is expected to improve liquidity and margins, but delays or issues in finalizing the sale could impact financial targets and operational focus.
Gaming Segment Expansion: While the segment is growing, reliance on key contracts like William Hill and Jenningsbet introduces risks if these partnerships underperform or are not renewed.
Leisure Segment Transformation: The structural transformation of the Leisure segment, including the sale of holiday parks and a shift to a capital-light model, carries execution risks and potential disruptions to existing operations.
Interactive Business Growth: The Interactive business is expected to continue its growth trajectory, with significant potential in the North American market, where iGaming is still in its infancy. The company anticipates further growth in key markets like Brazil, supported by bespoke content and a strong roadmap of games for the second half of the year.
Virtual Sports Segment: The Virtual Sports segment is expected to show sequential growth in the second half of the year, with new product innovations being introduced in key markets such as Brazil, Greece, and the U.K. The company is optimistic about the segment's performance, particularly in the lottery vertical and with new operators.
Gaming Segment Expansion: The Gaming segment is projected to benefit from new cabinet deployments in Greece and Canada, as well as a new contract with Jenningsbet in the U.K. The company expects these initiatives to drive growth into 2026.
Leisure Segment Transformation: The anticipated sale of the holiday parks business and a shift to a more capital-light model in the pubs business are expected to improve margins and align the segment with higher-growth digital segments.
EBITDA Margin Improvement: The company expects its overall EBITDA margin to exceed the target of 40% following the completion of the leisure segment transformation and other cost efficiencies.
The selected topic was not discussed during the call.
The earnings call highlights strong growth potential in Interactive and Virtual Sports segments, supported by strategic initiatives in key markets like Brazil and North America. The sale of the holiday parks business is expected to improve margins and focus on high-growth areas. Despite some lack of detail in the Q&A, the overall sentiment is positive due to projected EBITDA margin improvements and strategic focus on growth areas.
The earnings call highlights strong financial performance with a 15% increase in EBITDA and improved margins, driven by growth in the interactive segment. Despite some challenges, such as delays in product launches affecting Q3 expectations, management remains optimistic about future growth, particularly in Brazil and new product innovations. Positive feedback on new products like Vantage cabinets and strategic market expansions further support a positive outlook. Shareholder return strategies, like potential share repurchases, also contribute to a positive sentiment. The Q&A session reinforced management's confidence, despite some vague responses regarding capital deployment.
The earnings call presents a mixed picture: strong financial metrics like significant EBITDA and revenue growth, and high recurring revenue provide stability. However, challenges like competitive pressures, supply chain issues, and uncertainties in iGaming legislation pose risks. The lack of share buyback or dividend programs and unclear management responses in the Q&A add to the uncertainty. Overall, these factors balance each other out, leading to a neutral sentiment.
The earnings call indicates strong financial performance with significant EBITDA growth, especially in the Interactive Business. Challenges in Virtual Sports are stabilizing, and the Brazil market is promising. While there are supply chain issues, the company's resilient structure and high margins are reassuring. The lack of share buybacks or dividends is a slight negative, but overall, the positive financial metrics and optimistic guidance suggest a likely stock price increase in the short term.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
