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Adjusted EBITDA (Q4 2024): $30.9 million, up 22% from last year.
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Full Year Adjusted EBITDA (2024): $100.1 million.
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Interactive Segment Revenue Growth (Q4 2024): 45% increase.
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Interactive Segment EBITDA Growth (Q4 2024): 105% increase.
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Interactive Segment EBITDA Margin (Full Year): Increased to 65% from 55% last year.
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Gaming Segment EBITDA Growth (Q4 2024): 42% year-over-year increase.
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Leisure Segment Revenue Growth (Q4 2024): 7% year-over-year increase.
Release Date: March 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Adjusted EBITDA for the fourth quarter was $30.9 million, up 22% from last year.
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The interactive business showed significant growth with fourth quarter revenue and EBITDA growth of 45% and 105%, respectively.
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The company received a letter from the SEC informing them that their inquiry is now closed with no further action.
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The digital business is expected to approach 60% of EBITDA by year-end, driven by growth in interactive and virtual sports.
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The gaming segment had EBITDA growth of 42% year over year in the fourth quarter, partly due to gaming hardware sales.
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The press release for the earnings call was delayed, causing potential inconvenience.
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Virtual sports did not hit the expected inflection point during the fourth quarter as previously predicted.
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There was a significant year-to-year increase in accounts receivable, resulting in lower than anticipated year-end cash.
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The cash balance is expected to be lower than previously guided due to delays in receivables and accelerated supplier payments.
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The virtual sports segment faced challenges due to a revenue reduction from its largest customer.
Q: Can you provide more details on the challenges faced by the virtual sports segment? A: Brooks Pierce, President and CEO, explained that the challenges are primarily driven by one major customer. However, there is stabilization with this customer, and the rest of the business has shown modest growth. The company is reorganizing its product group and introducing new innovations, which have been well-received by major customers, giving confidence in the segment’s future growth.
Q: Are there any updates on M&A activities or the strategic review of holiday parks? A: Lorne Weil, Executive Chairman, stated that they are seriously exploring the sale of holiday parks and are cautiously optimistic about a favorable outcome. There are no current plans for other divestments, and while they are open to M&A opportunities, nothing is imminent.
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