Intralot announced a net loss of €3.1 million for the first nine months of 2025, yet maintained its confidence in achieving full-year targets. This came as the integration of Bally’s assets set a transformative course for the company. Despite experiencing a 2.9% drop in revenue year over year—reaching €242.5 million—the business noted a slight 0.3% increase in revenue on a constant currency basis.
The CEO, Robeson Reeves, who took office in November, pointed out that foreign exchange fluctuations had skewed the comparisons. However, he remained optimistic about meeting the group’s annual financial goals. The acquisition of Bally’s international assets, completed in November and valued at €2.7 billion, marked a new financial chapter for Intralot.
The transformation brought by Bally’s integration is significant, with Bally’s International Interactive reporting €548 million in revenue and a robust 43% adjusted EBITDA margin for the third quarter. Reeves projected that the newly combined entity is poised to achieve €1.1 billion in annualized revenue and €435 million in adjusted EBITDA, which translates to a 40.65% margin. This consolidation is one of the most substantial restructuring efforts for Intralot in recent history.
The company’s B2B and B2G sectors, which contributed to 95.1% of total revenue, showed resilience under currency pressures. On a constant currency basis, these operations only dipped by 0.5% year over year, buoyed by stable activities in key regions. The United States showed a 2.3% growth, Australia 3.9%, and Argentina 19.8%. However, Turkey’s performance suffered due to hyperinflation accounting adjustments.
In the B2C segment, Argentina experienced a 12.4% revenue climb, driven by favorable local economic conditions that spurred wagering activity. Yet, hyperinflation accounting tempered its impact when translated into euros.
Across Intralot’s portfolio, lottery products accounted for 53.6% of revenue, with sports betting at 21.6%, video lottery terminals at 13%, and IT products and services at 11.8%.
Operational challenges also weighed on profitability, with increased depreciation and reorganization costs leading to a net loss. Gross profit dropped 15.9% to €83.7 million, but operating income increased by 4.8% to €23.1 million. Despite a 16.1% reduction in operating costs—thanks to lower expenses in Turkey and the U.S. and currency movements—adjusted EBITDA saw a slight decline of 1.6% to €90.1 million. However, margins improved from 36.7% to 37.2%.
Reorganisation expenses amounted to €2.7 million, while depreciation and amortization costs reached €51.3 million, contributing to an operating profit of €34.7 million, which was a 6.5% decrease. Pre-tax profit declined by 17.1% to €8.8 million, ultimately resulting in the €3.1 million net loss compared to a €6.5 million profit in the previous year.
Intralot also faces new challenges from the UK’s revised gambling tax structure, which looms over its future profitability. The UK autumn budget introduced tax hikes, raising remote gaming duty from 21% to 40% and general betting duty from 15% to 25%. These changes are expected to impact the company in 2026. Reeves acknowledged that the tax increases surpassed expectations and indicated that the company will implement “aggressive” strategies to mitigate their effects. These measures will include adjustments in marketing, generosity, and efforts to accelerate synergies.
While past tax hikes in other markets have sometimes led to market consolidation and improved market share for higher-margin operators like Bally’s, the impact of the UK changes might slow Intralot’s growth trajectory by a year. Consequently, the company revised its projected 2026 adjusted EBITDA to fall between €420 million and €440 million, considering the anticipated tax implications.
Despite these hurdles, the company remains hopeful. The integration of Bally’s assets is seen as a pivotal move that could enhance Intralot’s competitive edge and market positioning. Yet, industry observers are cautious, noting that the real test will lie in how effectively Intralot can navigate the complex interplay of market dynamics and regulatory changes.
As the year progresses, some analysts suggest that Intralot might need to recalibrate its strategies further. While the acquisition of Bally’s positions the company for potential growth, the external pressures of currency fluctuations and tax increases present significant challenges. The strategic focus will likely need to balance aggressive expansion with careful management of operational and financial risks.
The contrasting perspectives underscore the complexity of the current economic landscape for Intralot. On one hand, there is optimism about the company’s long-term potential post-acquisition. On the other, the immediate challenges of market volatility and regulatory pressures cannot be ignored. As Intralot continues to implement its integration plans, industry stakeholders will be closely monitoring its ability to adapt and thrive in this evolving environment.
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