Brightstar Lottery Earnings Call Transcripts
Fiscal Year 2025
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Revenue for 2025 was $2.51B with strong Q4 growth, while net debt leverage improved to 2.4x. Major digital expansion in Italy and U.S. retail, robust shareholder returns, and a positive 2026 outlook highlight ongoing transformation and growth.
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Q3 saw strong revenue and profit growth, driven by robust same-store sales and digital expansion. The company reaffirmed its 2025 outlook, highlighted significant shareholder returns, and set ambitious 2028 targets, with continued focus on innovation and global market leadership.
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Q2 revenue grew 3% year-over-year to $631M, with strong iLottery and instant ticket growth, while adjusted EBITDA declined 5% due to lower jackpot activity. Capital returns include a $3/share special dividend and a $500M buyback, as the company reaffirms its $1.1B EBITDA outlook for 2025.
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Secured a nine-year renewal of the Italian Lotto license with a €2.23 billion fee, aiming to drive growth through digital expansion, new games, and enhanced retail integration. Digital iLottery and B2C gaming are key focus areas, with significant investment in technology and a commitment to shareholder returns.
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Q1 2025 saw resilient demand for instant and draw games, with iLottery sales up 26% and EBITDA at $250 million, despite lower U.S. jackpot activity. Full-year guidance was revised to the low end due to jackpot and macro headwinds, while strategic initiatives and new product launches are expected to drive growth in the second half.
Fiscal Year 2024
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Announced sale of Gaming and Digital business for $4B, shifting focus to lottery operations. 2024 revenue was $2.5B with strong cash flow and a 47% EBITDA margin. 2025 guidance anticipates modest growth, significant CapEx, and continued debt reduction.
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Revenue and adjusted EBITDA remained strong, with growth in Italy and iLottery offsetting U.S. jackpot volatility. The business is transitioning to a pure-play lottery model, optimizing costs, and targeting further growth with a robust balance sheet and new product launches.
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Strong first-half 2024 results included record operating income and adjusted EBITDA, with a $4.05B sale of the Gaming and Digital business to Apollo set to unlock value and focus the company on its lottery operations. Net debt leverage reached a historic low, and the outlook for lottery remains solid.