Bally's Intralot (BYLOT) Q3 2024 earnings summary

Executive summary

• Q3 and 9M24 showed sequential improvement in revenue and EBITDA, but year-over-year declines due to absence of major US jackpots, adverse FX in Argentina and Turkey, and contract changes in Morocco.

• Organic growth in Turkey and Argentina partially offset negative impacts, with Turkey's online sports betting market performing strongly despite currency devaluation.

• Profitability and leverage metrics remained within targets, with adjusted net debt at €326.2m and leverage ratio at 2.7x.

• Key contract extensions and new projects were secured in Australia and Canada, and ongoing participation in global tenders continues.

Financial highlights

• Revenue for 9M24 was €263.5m, down 5.9% year-over-year; Q3 revenue was lower by €14.8m year-over-year.

• EBITDA for 9M24 was €91.5m, down 9.4% year-over-year, with margin at 34.7%.

• Net income after tax and minority interest (NIATMI) dropped 28.2% to €6.5m.

• Operating cash flow for 9M24 was €81.6m; CAPEX increased to €24.7m, mainly for US projects and Turkey license renewal.

• Free cash flow for the period was €39.5m; net interest payments totaled €28.4m.

Outlook and guidance

• Second half of the year is expected to outperform the first, with further improvement anticipated in Q4, especially if a major US jackpot occurs.

• Management maintains focus on profitability and leverage, with ongoing contract renewals and new project bids globally.

• The impact of last year's currency devaluations is diminishing, and Argentina's performance is expected to strengthen in Q4.

• No specific EBITDA guidance provided, but sequential improvement trend confirmed.