Bally's Intralot (BYLOT) Q2 2024 earnings summary

Executive summary

• Maintained stable performance in H1 2024 despite FX headwinds and seasonality, with strong marketing-driven growth in Turkey and key contract renewals in the Netherlands and Ireland.

• Continued deployment of advanced lottery technology, including Lotos X and a milestone cloud-based system in Canada.

• Pursued new commercial opportunities in North America and Australia, with several RFPs submitted and more expected in H2 2024.

• Major contract extensions secured in the Netherlands (retail sportsbook) and Ireland (lottery contract) through 2027.

• Focus remains on technology deployment and ecosystem development to support growth.

Financial highlights

• 1H24 revenue was €173.6m, down 0.9% year-over-year, mainly due to FX impact in Argentina (€-10.3m); Q2 revenue up 3.1% year-over-year.

• Gross profit increased by €2.7m (4.2%) to €65.6m, with gross margin up 1.9pps to 37.8%.

• EBITDA was €59.5m, down 5.3% year-over-year, with a margin of 34.3%.

• Net income after tax and minorities rose 4.4% to €4.6m, aided by a deferred tax liability reversal.

• Free cash flow for H1 was €22.4m; CAPEX was €11.7m, mainly for US projects and Turkey license renewal.

Outlook and guidance

• Management is cautiously optimistic for H2 2024, expecting a major U.S. jackpot and stronger performance in Turkey and Argentina due to seasonality.

• Focus on leveraging improved financial position and technology deployment to pursue growth in North America and Australia.

• Marketing spend in Turkey expected to normalize, with readiness to adjust if market conditions change.