Sparks - Bally’s Intralot

Bally’s Intralot’s (BI’s) Q226 preliminary figures highlight similar trends as Q126 of good growth in its online gaming business that is partially offset by continued softness in US lotteries and Turkey. Management has done a good job of mitigating the increase in UK remote gaming duties that were introduced at the start of April so that adjusted EBITDA declined by c 16% from Q126 to Q226.

On a sequential basis versus Q126, Q226’s revenue increased by 3% and adjusted EBITDA fell by c 16%. International online revenues grew strongly with the UK growing by 11.6% and Spain increasing by 9.7% y-o-y. B2B lottery is described as resilient with 2.7% growth, but Turkey was very weak with a decline of c 22%. The decline in adjusted EBITDA reflects the increase in UK remote gaming duties on 1 April, of which management has mitigated c 65% of the impact through a combination of higher revenue and cost optimisation.

The B2B division continues to demonstrate revenue weakness with a 9.5% reported revenue decline in Q226, which is comparable with Q126’s 10% decline. The main source of weakness is the US, with constant-currency declines of 11.7% in H126, which is attributed to softer lottery markets and lower equipment sales. Despite the revenue weakness, there was good progress on the adjusted EBITDA margin, which increased by c 330bp to 37.6% in Q226 and 460bp to 37.3% in H126.

As a result of Q226’s performance, the pro forma headline figures for the 12 months to the end of June 2026 show some drift versus the comparable figures provided at the end of March 2026 and December 2025. The company’s pro forma figures for the 12 months ended 30 June 2026 for revenue of c €1,061m and adjusted EBITDA of c €400m compare with March 2026’s respective figures of c €1,063m and c €427m and the December 2025 figures of c €1,087m and c €431m.