<\/p>\n
Performance was driven by the 2025 strategic divestiture of the holiday park business and restructuring of the pubs segment to reduce capital and labor intensity.<\/p>\n<\/li>\n
Management reduced total headcount by approximately 1\/3 and lowered annualized capital spending from the mid-$40 million range to the low $30 million range.<\/p>\n<\/li>\n
Interactive revenue grew 38% year-over-year, serving as the primary growth engine alongside share gains in the retail business across the U.K. and Greece.<\/p>\n<\/li>\n
The company achieved an 1,100 basis point expansion in EBITDA margin, attributed to the shift toward higher-margin digital businesses and improved retail performance.<\/p>\n<\/li>\n
Retail growth in Greece was supported by an 11% increase in win per unit following the introduction of the Valor Slant top machine.<\/p>\n<\/li>\n
Management attributed sustained Interactive growth to superior content development and enhanced account management teams securing prime placements with operators.<\/p>\n<\/li>\n<\/ul>\n
Management expects steady sequential growth in EBITDA starting from Q1 2026 now that the holiday park sale has removed most business seasonality.<\/p>\n<\/li>\n
An additional internal game development studio is scheduled to come online in the second half of 2026 to increase content output and variety.<\/p>\n<\/li>\n
The company is targeting strong cash flow conversion and declining leverage, with plans to continue both debt repayment and share repurchases.<\/p>\n<\/li>\n
Expansion in North America is expected to scale over the next 12 to 18 months, specifically through the Chicago market launch in Q4 2026 and growth in Canadian provinces.<\/p>\n<\/li>\n
Management anticipates a ‘tipping point’ for Virtual Sports driven by upcoming product releases, the World Cup tailwind, and potential North American lottery partnerships.<\/p>\n<\/li>\n<\/ul>\n
A U.K. Interactive tax rate increase from 21% to 40% took effect April 1, 2025; however, April revenue grew 10% as share gains offset the tax impact.<\/p>\n<\/li>\n
Virtual Sports performance remains flat as growth in other regions is currently being offset by ongoing headwinds in the key Brazilian market.<\/p>\n<\/li>\n
The company successfully reduced its leverage to 3x and generated $16 million in free cash flow during the quarter.<\/p>\n<\/li>\n
Management noted they are monitoring macro and geopolitical issues closely but have not seen a material impact on the top line thus far.<\/p>\n<\/li>\n<\/ul>\n
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