Key Moments:
- Intralot reported a €3.1 million net loss for the first nine months of 2025, while confirming alignment with its 2025 financial targets
- The €2.7 billion integration of Bally’s international assets established a new financial framework for the group
- The UK government’s upcoming tax increases are expected to affect profitability and delay Intralot’s growth plan by one year
Financial Results and Market Performance
Intralot recorded a net loss of €3.1 million over the first nine months of 2025, maintaining that its full-year targets remain on course. The company’s revenue for the period stood at €242.5 million, representing a dip of 2.9% year on year, or a 0.3% uptick on a constant currency basis. CEO Robeson Reeves, who took office in November, stated that foreign exchange fluctuations had complicated year-over-year comparisons but repeated his confidence in fulfilling the group’s financial commitments for the year.
Bally’s Assets Acquisition Reshapes Group Structure
The recently completed €2.7 billion acquisition of Bally’s international assets has redefined Intralot’s strategic position. The reported results covered Intralot as a standalone operation, as the transaction closed in November. According to Reeves, the inclusion of Bally’s International Interactive – which posted €548 million in Q3 revenue and a 43% adjusted EBITDA margin – is anticipated to fundamentally alter subsequent financial disclosures.
The consolidated entity is projected to generate €1.1 billion in annualized revenue and €435 million in adjusted EBITDA, equating to a 40.65% margin on a pro-forma basis. This combination marks a significant transformation for Intralot.
B2B and B2G Segments Face Currency Headwinds
Foreign exchange volatility impacted performance throughout Intralot’s principal markets during the period. The B2B and B2G divisions accounted for 95.1% of total revenue. On a constant currency basis, this segment experienced a minor 0.5% contraction year on year, supported by stable activity in key geographies. Constant currency growth rates were 2.3% in the US, 3.9% in Australia, and 19.8% in Argentina. Turkey faced diminished performance due to adjustments stemming from hyperinflation.
Intralot’s B2C activity achieved 12.4% revenue growth in Argentina, supported by robust betting demand, but hyperinflation accounting limited its contribution in euro terms.
| Product Segment | Share of Revenue (%) |
|---|---|
| Lottery Products | 53.6 |
| Sports Betting | 21.6 |
| Video Lottery Terminals | 13 |
| IT Products and Services | 11.8 |
Cost Pressures Challenge Profitability
A combination of higher depreciation and reorganization expenses shifted Intralot into a net loss. Gross profit declined by 15.9% to €83.7 million, while operating income increased 4.8% to €23.1 million. Overall operating costs dropped 16.1% to €69.3 million, supported by reduced spending in Turkey and the US, and favorable currency movements.
Adjusted EBITDA edged down 1.6% to €90.1 million, though the margin rose from 36.7% to 37.2%. Reorganization costs amounted to €2.7 million, depreciation and amortization totaled €51.3 million, and operating profit reached €34.7 million – a decrease of 6.5%. After factoring in interest and related charges, pre-tax profit decreased 17.1% to €8.8 million, resulting in the €3.1 million net loss versus a €6.5 million profit in the previous year.
New UK Tax Measures Expected to Pressure Margins
Forthcoming changes in the UK’s gambling tax regime are expected to significantly affect Intralot’s future results. The government’s autumn budget raised remote gaming duty from 21% to 40%, and general betting duty from 15% to 25%. Reeves commented on the challenging nature of these increases, describing them as higher than anticipated and outlining plans for “aggressive” response measures, including modifications to marketing, generosity, and accelerated synergy efforts.
Reeves noted that previous tax hikes in other territories have sometimes led to increased consolidation and better market share for high-margin operators such as Bally’s, though the new changes are projected to delay Intralot’s growth plans by one year.
In response, Intralot has updated its 2026 adjusted EBITDA forecast, now expecting between €420 million and €440 million to reflect the projected impact of the UK taxation revisions.
- Author
Daniel Williams
