Inspired Entertainment, Inc. (NASDAQ:INSE) Q3 2018 Earnings Conference Call - Final Transcript
Aug 14, 2018 • 08:00 am ET
right now most of our revenue and profit comes from, moving from an Ares loan having had a 17% annual coupon to a loan with our new lender at approximately 10.9%, equating to about 610 basis points of savings before any accounting for fees.
Secondly, the signing of new contracts in Greece that increases our base of gaming machines and provides an additional channel of Virtual Sports, reflecting the continued superior performance of our products and game content and indeed the strength of the overall marketplace in that country. Next, a contract extension with Paddy Power, one of our most important UK customers. And lastly, but by absolutely no means lastly, the launch of Virtual Sports in Pennsylvania. As it happens, it launched at 5:49 a.m. Eastern time this morning, when the first ticket was sold in Pennsylvania, and there were very quickly winners in both the football game and the car racing game.
Interestingly, as I think most of you know, pretty much all of the growth that we have generated since the acquisition of Inspired a little over 1.5 years ago has come from outside North America despite the fact that North America, as most of us know is the largest and most profitable gaming market in the world, and one to which myself and more importantly our recently recruited President and COO, Brooks Pierce, who by the way I can tell you was doing a terrific job, have devoted virtually our entire careers.
Brooks, again as many of you will know, was most recently Managing Director of Aristocrat Americas during a period of extraordinary growth in that business, and prior to that, Chief Revenue Officer of the gaming group of Scientific Games. So while we continue to focus on maintaining and indeed accelerating our growth outside North America, we are now very clearly and deliberately targeting North America in both our Virtual Sports and Server Based Gaming lines of business.
On the Virtual Sports side, as I mentioned a moment ago, we reached a critical milestone with the launch this morning of Virtual Sports, being sold in 9,000 retailers across the state of Pennsylvania; right now approximately 1,500 of these we would consider specialty Virtual Sports retailers with full video monitors, and we hope that this will fairly rapidly increase to 3,000 such specialty retailers.
Integrating our virtual sports product so that it plays seamlessly on a traditional North American lottery system platform, in the case of Pennsylvania the Scientific Games platform, was a fairly technically demanding process, but with this behind us, future implementations will be much easier. We continue to believe that the North American lottery market is a natural fit with Virtual Sports, and I'm very excited with the potential.
In parallel with the above mentioned integration effort, we've developed and delivered a virtual sports product that's been customized for the Pennsylvania marketplace. And our team has been educating Pennsylvania retailers and consumers about the product and how it plays. For those who are