Intralot reported a net loss for the first half of 2025, despite seeing a 1.7% increase in revenue compared to the same period in the previous year. The company disclosed that its total revenue for the six months ending on June 30 reached €168 million, up from €165.3 million in H1 2024.
Lottery operations were the principal revenue driver for Intralot, contributing 53% of the total income. Sports betting accounted for 22%, video lottery terminals added 12.8%, and IT products and services made up 12.2%. The chairman, Sokratis Kokkalis, maintained a positive outlook, describing the performance as stable. He emphasized that the results reflected solid financial performance, increased cash flows, and a notable reduction in debt and leverage.
In July, Intralot announced its acquisition of Bally’s International Interactive division. Valued at €2.7 billion, this cash-and-stock transaction will make Bally’s the majority shareholder in Intralot. The deal is expected to be finalized by the end of the year, marking a transformative phase for both companies. Kokkalis noted that this acquisition would bolster Intralot’s capabilities in the digital landscape, enhancing growth and expanding financial scale.
Intralot’s financial report highlighted a 2.4% year-on-year growth in revenue from technology and support services within its B2B and B2G segments, particularly due to better performance in the U.S. market. Despite lower-scale jackpots affecting service revenue, sales of equipment increased compared to 2024. Positive trends in Argentina and Croatia also contributed to revenue growth. Specifically, Argentina saw a 32% boost in B2B operations revenue, attributed to recovering economic activity and a strengthening local market.
Nevertheless, the company faced challenges in its Turkish operations, which led to a 5.9% drop in revenue from management contracts within the B2B and B2G businesses. Intralot attributed this decline to hyperinflation impacts and increased investment in player acquisition and retention activities, which weighed on revenues.
Despite revenue growth, Intralot’s gross profit decreased by 12% to €57.7 million for the first half of the year. However, other operating income rose by 10.4%, and operating expenses were reduced by 13.6%, which helped the adjusted EBITDA climb by 1.2% to €60.2 million. Earnings before interest and tax increased to €25 million, and earnings before tax was up 61.4% to €9.8 million. Nevertheless, the net income after tax and minority interest (NIATMI) turned from a €4.6 million profit in 2024 to a €0.1 million loss.
In the second quarter, Intralot’s revenue fell by 4.8% to €79.6 million, and gross profit dropped by 21.7% to €25.6 million. Adjusted EBITDA saw a 2.2% increase to €30 million. Earnings before interest and tax rose by 15.4% to €13.1 million, and earnings before tax surged by 810% to €6.2 million. However, NIATMI was down 34% to €0.5 million, meaning Intralot managed to remain in the black for Q2, albeit just barely.
The context of the igaming industry presents both challenges and opportunities for companies like Intralot. The sector is experiencing rapid technological advancements and an evolving regulatory landscape, which requires agile strategic maneuvers. While the company’s efforts to expand its digital footprint and optimize operations are commendable, the pressures from fluctuating markets and international economic conditions are significant.
There is another perspective to consider: the competitive environment in igaming is becoming increasingly intense. The entrance of new players and the consolidation among existing giants are reshaping market dynamics, making it crucial for established companies like Intralot to innovate continuously. The company’s strategic acquisition of Bally’s International Interactive is a bold step toward securing a competitive edge, although it also introduces new complexities and risks.
In the broader economic setting, Intralot’s efforts to streamline operations and reduce debt are strategic responses to external pressures such as inflation and currency fluctuations, particularly in volatile markets like Turkey. However, these measures alone may not be sufficient to counterbalance the challenges if revenue streams do not stabilize across all regions.
Furthermore, while the company’s strategic initiatives aim to enhance its market position, the success of these moves will likely depend on seamless integration and the ability to leverage combined strengths efficiently. As the industry continues to evolve, Intralot’s adaptability and strategic foresight will be crucial in navigating the path to sustainable profitability.
In conclusion, Intralot’s financial performance in the first half of 2025 reflects a complex interplay of growth opportunities and operational challenges. As the company advances with its acquisition of Bally’s International Interactive and focuses on expanding its digital reach, the coming months will be pivotal in determining its long-term trajectory in the igaming industry. Balancing strategic objectives with market realities will be key to unlocking value for stakeholders and achieving sustainable growth.
4.1/5
