Intralot is confident in achieving its full-year financial targets for 2025, despite experiencing a decline in revenue and incurring a net loss over the first nine months ending September. The company reported a revenue of €242.5 million ($281 million) during this period. This figure marked a 2.9% decrease compared to the previous year, though it showed a slight increase of 0.3% when assessed on a constant currency basis.
Robeson Reeves, who stepped into the role of group CEO in November, emphasized the challenges posed by “strong” foreign exchange headwinds. He noted that these factors skewed the year-on-year comparisons but remained optimistic about meeting the company’s full-year objectives. He remarked that despite these challenges, Intralot has shown resilience in its nine-month results, staying on course to fulfill its goals for 2025.
The context of Intralot’s performance is notably influenced by its recent acquisition of Bally’s International Interactive, a deal valued at €2.7 billion, finalized in November. As a standalone entity, Intralot’s financial results exclude Bally’s performance, yet Reeves highlighted the positive impact the acquisition will have in the future. Bally’s International Interactive reported €548 million in revenue and a 43% adjusted EBITDA margin for Q3 alone.
Looking ahead to the full-year 2025, Intralot projects that with the integration of Bally’s assets, the combined revenue could reach approximately €1.1 billion, with an adjusted EBITDA of €435 million and a combined margin of 40.65%.
Examining the specific performance metrics, the B2B and B2G segments were significant contributors, accounting for 95.1% of the revenue during the nine-month period. Adjusting for foreign exchange variations, this segment witnessed a modest decline of 0.5%. The company reported robust activity in its key markets: the US experienced a 2.3% revenue increase in constant currency terms, Australia saw growth of 3.9%, and Argentina surged by 19.8%. However, Turkey’s performance was adversely affected by the application of hyperinflation accounting.
The B2C segment also showed promise, with revenue in Argentina rising 12.4%, driven by strong economic momentum. Yet, this growth was tempered by the challenges of translating results into euros due to hyperinflation.
Intralot’s overall revenue distribution highlighted lottery games as the largest segment, comprising 53.6% of total revenue. Sports betting contributed 21.6%, video lottery terminals accounted for 13%, and IT products and services made up 11.8%.
Financially, Intralot reported a gross profit drop of 15.9% to €83.7 million, despite a 4.8% rise in other operating income, reaching €23.1 million. The company managed to cut operating costs by 16.1% to €69.3 million due to reduced spending in Turkey and the US, alongside the benefit of local currency devaluation. Adjusted EBITDA slightly decreased by 1.6% to €90.1 million, although the margin improved from 36.7% to 37.2%.
The company incurred €2.7 million in reorganization expenses and €51.3 million in depreciation and amortization, resulting in an operating profit of €34.7 million, a 6.5% decline. After factoring in interest and other expenses, pre-tax profit stood at €8.8 million, reflecting a 17.1% decrease from the previous year.
By the end of the nine months, Intralot recorded a net loss of €3.1 million, compared to a profit of €6.5 million in 2024.
In light of the UK government’s announcement of heightened tax rates on gambling in the autumn budget, Intralot signaled its strategic response. The new measures will see remote gaming duty rise from 21% to 40% and general betting duty from 15% to 25%. Reeves admitted the increases were “higher than anticipated” but assured that Intralot would pursue “aggressive” mitigation strategies to counterbalance the impact. Historically, such tax hikes have spurred market consolidation and growth for companies like Bally’s, which enjoy higher margins than their competitors.
Reeves outlined a plan to maintain growth in accepted wagers, alongside reductions in generosity, marketing, and accelerated synergies to soften the tax increase impact. While this may delay the growth plan by a year, it is expected to safeguard long-term objectives.
Consequently, Intralot adjusted its 2026 EBITDA guidance to a range of €420 million to €440 million. With the strategic acquisition of Bally’s and a structured response to regulatory changes, Intralot remains steadfast in its pursuit of financial stability and growth, setting a course to navigate the evolving gaming landscape effectively.
4.2/5
