Bally's Intralot (BYLOT) Q4 2024 earnings summary

Executive summary

• Achieved strong top-line growth in 2024, with revenue rising 3.4% to €376.4m, driven by organic expansion in the U.S., Turkey, and Argentina, and new contracts in the US and Canada.

• Focused on strengthening customer relationships, extending contracts, expanding operations, and upgrading to new technologies, while pursuing new tenders globally.

• Signed major agreements in Malaysia, Canada, and Nebraska, and completed significant technology upgrades, including a cloud-based lottery system for BCLC.

• Key contract extensions in Europe and Australia, with high-margin activities and VLT monitoring wins supporting profitability.

• Management aims to expand global footprint and enhance player engagement, while monitoring geopolitical and economic risks.

Financial highlights

• Revenue increased by 3.4% year-over-year to €376.4m; Q4 revenue up 34.3% to €112.8m.

• Adjusted EBITDA reached €130.7m (+1.0% y-o-y), with a margin of 34.7%; Q4 AEBITDA rose 38.0% y-o-y.

• Earnings before tax fell to €18m from €33.6m in 2023, mainly due to settlement costs, higher interest, increased depreciation, and reorganization expenses.

• Net income after tax and minority interest was €4.9m, down 16.5% year-over-year.

• Operating cash flow was €87.2m, with free cash flow at €34.6m and net interest payments at €32.2m.

Outlook and guidance

• Conservative start to 2025 due to lack of significant jackpots in the U.S.; focus remains on contract renewals, new business wins, and high-margin activities.

• No major changes in strategy anticipated; pipeline includes significant tenders in Maryland, Missouri, and Illinois, with decisions expected in the coming months.

• Emphasis on technological innovation, digital transformation, and operational efficiency to drive sustainable growth.