Sparks - Bally’s Intralot

Bally’s Intralot saw a further sequential, ie quarter-on-quarter, improvement in revenue while profitability improved in absolute and percentage terms following Q226’s dip. Q326’s revenue of €286.1m compares with Q226’s €276.1m and Q126’s €268.1m. Q326’s adjusted EBITDA of €88.9m (31.1% margin) compares with Q226’s €84.6m (30.7% margin) and Q126’s €100.1m (37.4% margin).

The revenue growth continues to be driven by the B2C business with Bally’s Interactive International (BII) growing by 4% and Intralot’s legacy revenue growing by 2.7%. BII’s growth includes 12.2% year-on-year constant currency growth in the UK online despite lower marketing investment, which is very encouraging for customer acquisition and retention efficiency, and Spain reached an all-time high revenue. Intralot’s legacy B2C revenue grew due to a strong recovery in Turkey and ongoing growth in Argentina.

The sequential improvement in adjusted EBITDA versus Q226 reflects progress in both B2C and B2B. For 9M26, group adjusted EBITDA declined 14.7% against the pro forma comparative to €273.6m, demonstrating that underlying growth has yet to compensate fully for the tax increase and legacy weakness. On a trailing 12m pro forma basis, revenue was c €1,102m and adjusted EBITDA was c €377m, a margin of 34.2%. Compared to H126’s comparable figures, the trailing 12m pro forma revenue has increased from c €1,061m while the adjusted EBITDA figure has reduced from c €400m. With the H126 results, management reduced its FY26 adjusted EBITDA guidance to €402-415m from  the prior €422m, indicating a step up in performance is required.

Adjusted net debt increased slightly to €1,629.9m from €1,618.9m in June. Liquidity increased to €472.4m following the July financing, providing funding flexibility, although earnings recovery remains central to deleveraging.

The proposed evoke acquisition has received both companies’ shareholder approvals; management expects the remaining gaming approvals and court sanction process to conclude by Q127.