Intralot S.A. Integrated Lottery Systems and Services (INLOT) Q2 2025 earnings summary

Executive summary

• Stable financial performance in H1 2025 with revenue up 1.7% to €168.0 million, driven by growth in the US, Argentina, and Croatia, and steady EBITDA, despite low jackpot activity in the U.S.

• Strong operating and free cash flow generation, supported by positive working capital movements and improved leverage.

• Major acquisition of Bally’s Interactive international division for €2.7 billion expected to close in Q4 2025, shifting revenue mix toward digital and B2C.

• Successful contract renewals and new project launches in the US, New Zealand, Idaho, Montana, and Nebraska.

• Net income after tax and minority interest was €-0.1 million, down from €4.6 million in H1 2024.

Financial highlights

• Revenues increased by 1.7% year-over-year to €168.0 million; EBITDA rose 1.2% to €60.2 million, with margin at 35.8%.

• Gross profit margin declined to 34.4% from 39.7% year-over-year.

• Operating cash flow reached €72.2 million, up from €45.0 million year-over-year.

• Adjusted net debt reduced to €303.0 million, with net leverage ratio improved to 2.3x from 2.7x at year-end 2024.

• Free cash flow generation of €43.5 million in H1 2025.

Outlook and guidance

• Expectation of continued strong cash generation and improved financial profile post-Bally’s Interactive acquisition, with greater scale and profitability.

• Target net leverage ratio of 2.5x within two years post-transaction.

• Dividend policy set at 35% of net profits once leverage target is achieved.

• U.S. market expected to benefit from high Powerball jackpots in H2 2025 and growth from digitalization and iLottery expansion.

• Focus remains on contract renewals and operational efficiency.