Intralot expects to hit FY targets despite nine-month net loss

Intralot said it remains on track to reach its full-year financial targets despite reporting a fall in revenue and a net loss for the nine months through to the end of September.

Revenue during the period reached €242.5 million ($281 million), Intralot reported. This was 2.9% short of the previous year but 0.3% higher on a constant currency basis.

Reflecting on the year-to-date, Robeson Reeves, who took over as group CEO in November, noted the impact of “strong” foreign exchange headwinds. He said these skewed year-on-year comparisons for the period and backed the group to deliver its full-year goals.

“Intralot’s nine-month results as a standalone company show that it has been on track to deliver its goals for 2025, weathering strong FX headwinds,” Reeves said.

Considering the Bally’s impact for Intralot

Reference to standalone relates to the recent purchase of Bally’s international assets. The €2.7 billion acquisition completed in November, with Intralot taking full ownership of the Bally’s International Interactive.

While the nine-month figures refer only to Intralot, Reeves noted the impact the addition of Bally’s will have moving forward. For the same period, Bally’s International Interactive saw revenue hit €548 million plus a 43% adjusted EBITDA margin in Q3.

“Our guidance for full-year 2025 pro forma the two entities annualised is expected in the area of €1.1 billion revenue and €435 million in adjusted EBITDA, with a combined margin of 40.65%,” he said.

B2B/B2G decline pushes revenue down

Breaking down performance during the 9M period, the B2B and B2G segment accounted for 95.1% of revenue. Excluding foreign exchanges variances, this was broadly in line with last year, falling 0.5%.

Intralot said its key markets continued to demonstrate “resilient” activity. In the US, revenue was up 2.3% in constant currency, while Australia saw 3.9% growth and Argentina 19.8%. In Turkey, however, results were negatively impacted by the application of the hyperinflation accounting treatment.

Turning to B2C, revenue increased 12.4% in Argentina. Intralot said that the local market saw strong expansion, supported by sustained economic momentum. However, the translation of results into euros was moderated by the effects of hyperinflation accounting.

For the business as a whole, lottery games drew 53.6% of overall revenue. Sports betting contributed 21.6% to the total, video lottery terminals 13% and IT products and services 11.8%.

Intralot slips to €3.1 million net loss

Gross profit for the period fell 15.9% to €83.7 million, although other operating income was up 4.8% to €23.1 million. In addition, operating costs were reduced 16.1% to €69.3 million amid lower spending in Turkey and the US, further supported by local currency devaluation.

Adjusted EBITDA edged down 1.6% to €90.1 million while margin increased from 36.7% to 37.2%.

Intralot noted €2.7 million in reorganisation expenses and a further €51.3 million worth of deprecation and amortisation. This resulted in €34.7 million in operating profit, a decline of 6.5%.

After accounting for interested and related expenses, as well as other costs, pre-tax profit was €8.8 million. This fell 17.1% short of the figure posted in the same period last year.

Intralot ended the nine months with a net loss of €3.1million, compared to a €6.5 million profit in 2024.

Intralot commits to ‘aggressive’ mitigation amid UK tax rises

The group also acknowledged news of higher tax rates on gambling in the UK. Set out in the autumn budget, these will see remote gaming duty increase from 21% to 40% and general betting duty from 15% to 25%.

Reeves said the increases were “higher than anticipated” and that Intralot will follow its “aggressive” mitigation scenarios to manage impact.

“Such tax increases have happened periodically in our markets and, historically, have led to market consolidation and market share growth for companies like Bally’s who have higher margins than other peers,” he said. “We still intend to deliver growth in the wagers accepted which combined with generosity reductions, marketing reductions and accelerated synergies will limit the tax increase impact and will only delay our growth plan by a year.”

With this, Intralot revised its 2026 EBITDA guidance to within the range of €420 million to €440 million.