Intralot S.A. Integrated Lottery Systems and Services (INLOT) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 increased by 10.9% year-over-year to €94.4m, driven by strong growth in licensed operations and management contracts, especially in Argentina and Turkey.

• EBITDA was stable at €30.2m (+0.3% year-over-year), while net profit after tax dropped to €2.1m from €8.6m in Q1 2024, mainly due to higher administrative expenses and FX losses.

• Solid cash flow generation and positive working capital trends supported financial stability, with cash and cash equivalents at €75.9m at quarter-end.

• Net leverage ratio improved to 2.4x from 2.7x at year-end, and adjusted net debt reduced to €316.5m.

• Key contract renewals in New Zealand (through 2032) and New Hampshire (through 2033), with the first US deployment of the Lotos X platform.

Financial highlights

• Revenue: €94.4m (+10.9% year-over-year); Gross profit: €32.2m (-2.2% year-over-year); Gross margin: 34.0%.

• EBITDA: €30.2m (+0.3% year-over-year); AEBITDA margin on sales: 32.0% (down 3.4pps year-over-year).

• Net profit after tax: €2.1m (down from €8.6m in Q1 2024); NIATMI was a loss of €0.6m.

• Operating cash flow reached €49m, with free cash flow of €38.4m and CAPEX at €6m.

• Adjusted net debt improved to €316.5m, and cash balance at quarter-end was €75.9m.

Outlook and guidance

• Management remains positive on the outlook for the year, with no changes to previously stated expectations.

• Focus continues on executing operational plans, deleveraging, and free cash flow generation.

• Continued commercial momentum expected from contract renewals and new platform deployments.

• Strategic review of total bank debt is ongoing, with further announcements expected.

• Recent contract extensions in New Zealand and the US are expected to support future revenue.