Intralot S.A. Integrated Lottery Systems and Services (INLOT) Q3 2025 earnings summary

Executive summary

• Completed acquisition of Bally's International Interactive for up to €2.7 billion, making Bally's the largest shareholder with a 58% stake and establishing a long-term capital structure for future growth.

• Proforma annualized 2025 guidance: €1.1 billion in revenue and €435 million in adjusted EBITDA, with a margin above 39%.

• UK government increased remote gaming duty from 21% to 40% effective April 2026, expected to delay growth plans by one year but not derail them.

• Revenue for the nine months ended September 30, 2025, was €242.5 million, down 2.9% year-over-year, mainly due to adverse FX movements.

• Net income after tax and minority interest (NIATMI) was -€3.1 million for 9M25, compared to €6.5 million in the prior year.

Financial highlights

• 9M25 revenues: €242.5 million, down 2.9% year-over-year; gross profit: €83.7 million, down 15.9%.

• AEBITDA for 9M25: €90.1 million, down 1.6% year-over-year; margin improved to 37.2%.

• Net debt reduced to €298.8 million as of September 2025; leverage ratio improved to 2.3x.

• Operating cash flow for 9M25: €86.4 million, up 5.9% year-over-year; CAPEX: €20.4 million.

• Free cash flow for the period was €48.1 million.

Outlook and guidance

• Combined pro-forma 2025 revenue projected at €1.1 billion, with EBITDA margins above 39%.

• 2026 EBITDA guidance revised to €420-440 million due to UK tax increase, with mitigation plans in place.

• Growth plan delayed by one year due to tax changes, but medium-term growth prospects remain intact.

• Turnover expected to grow to €1,150 million in 2026 and €1,245 million in 2027, with EBITDA margins stabilizing around 35%.

• Strategic focus on leveraging cross-selling opportunities and expanding in the global iGaming and lottery market.