Inspired Entertainment, Inc. (NASDAQ:INSE) Q3 2018 Earnings Conference Call - Final Transcript
Aug 14, 2018 • 08:00 am ET
-- in terms of the ban on advertising for gaming, which clearly we would have preferred not to have happened, and it will take some time. I will tell you that our Italy business from a Server Based Gaming side is actually doing very, very well showing kind of north of 20% growth out of that market. So we're hopeful that both the tax, which is fairly modest and the advertising ban won't have a real negative impact, but time will tell.
And then my last question is just with respect to a little bit more emphasis on the North American opportunities from an SBG side. Obviously, Brooks and Lorne, you're very familiar with the markets and kind of the landscape and the opportunities. Is this something that could be as early as 2019? Or is this more of 2020 and beyond in terms of potential contribution in goals in terms of growing the North American SBG business? And that's all from me. Thank you.
Sure. So I would say that for the fiscal '19, there will be probably a very minor impact. We're -- we spend a lot of time in the North American market, as you probably know. I know that market well, but we've had teams over, meeting with customers, taking a look at locations both in Canada as well as in the United States. We have a very good idea of what product we need to succeed in that market, but it's probably not reasonable to think we'll have much contribution in '19, more of a '20 impact.
(Operator Instructions) Stavros Jones, Harwood Capital.
Just one question from me. What is the impact of Betfred's win on the VAT against HMRC? And in your view, what would be the overall impacts to your four clients once they get the VAT back?
Yes, I'll take that. It's Stewart here. So obviously we're aware of the Betfred news. And we actually supported them, as part of that, with evidence and witnesses. And I mean, I don't have the calculations to look at what I think the overall impact is from a full industry-wide view, but I guess, if I take your question as could it impact Inspired -- I mean guessing that's the real point of your question, but I think -- and Betfred got through the first two. There's more to get through.
We'll see if HMRC appeals that and how that goes. We'll see how the various claims go. And clearly Inspired's revenue share during the relevant period of 2005 to 2013 was based upon after-tax income levels. And therefore, we would have had that deducted. But like I said, there's a long way to go in this. We're not counting any upside from that. You'll see in our disclosures we put out tonight there's nothing in there. And I think that just shows how, which is further down the road, that we expect this to have to play out before we say anything.