Intralot posted a small net loss and a reduction in gross profit during the first half of its 2025 financial year despite a year-on-year rise in revenue.
Group revenue for the six months to 30 June totalled €168 million ($196.2 million), Intralot reported. This surpassed the €165.3 million posted during H1 in the previous year by 1.7%.
Lottery remained the primary source of revenue, accounting for 53% of the total. Sports betting contributed 22%, video lottery terminals 12.8% and IT products and services 12.2%.
B2C revenue was higher year-on-year although B2B and B2G performance was more mixed. However, on the whole, Intralot Chairman Sokratis Kokkalis was upbeat about what he saw as a “stable” performance in H1.
“Our results for the first half of 2025 reflect stable financial performance in terms of revenue and operating profitability, strengthened cash flows and a significant reduction in debt and leverage,” Kokkalis said.
Intralot-Bally’s acquisition on track for Q4 completion
Kokkalis also referenced Intralot’s pending acquisition of Bally’s International Interactive division. Announced in July, the cash-and-stock transaction is valued at €2.7 billion. The reverse takeover deal will also see Bally’s become Intralot’s majority shareholder.
Intralot said the acquisition is still on track to complete before the end of the calendar year as previously stated. The group added that the deal will mark a “transformative” step for both companies, allowing it to pursue growth opportunities globally.
“The pivotal strategic decision to acquire Bally’s International Interactive will transform the company by enhancing its growth capabilities in the modern digital environment and substantially expand its financial scale,” Kokkalis said.
US and Argentina growth, decline in Turkey
Taking a closer look at Intralot’s financial performance in H1, revenue from the technology and support services within the B2B and B2G segment increased 2.4% year-on-year. This, the group said, was primarily due to an improved performance in the US.
“Although service revenue in the US was impacted by lower-scale jackpots compared to prior periods, this was offset by increased equipment sales relatively to 2024,” Intralot said. “Additionally, solid results in Argentina and a positive sales trend in Croatia further contributed to the growth.”
Also in reference to Argentina was a 32% increase in revenue from B2B operations in the country. This, Intralot said, followed the recovery in economic activity that led to the continued strengthening of the local market.
However, the management contracts segment of the B2B and B2G business reported a 5.9% drop in revenue. Intralot said this was mainly due to Turkish operations
“Despite continued growth of the local online sports betting market, revenue performance was impacted by adverse accounting effects related to hyperinflation in the Turkish economy, which contrasted with a positive effect in the same period last year,” Intralot said. “In addition, higher investment in player acquisition and retention activities also weighed on revenues during the period.”
Intralot in the red for H1
While overall revenue growth was positive for Intralot, the situation was different when it came to the bottom line for H1.
Gross profit dipped 12% to €57.7 million, although other operating income increased 10.4% and operating expenses were cut by 13.6%. This allowed adjusted EBITDA to edge up 1.2% to €60.2 million.
Earnings before interest and tax also increased to €25 million, while earnings before tax was also 61.4% higher at €9.8 million. However, bottom-line net loss, referred to by Intralot as net income after tax and minority interest (NIATMI), slipped from a €4.6 million profit in 2024 to a €0.1 million loss.
Mixed Q2 for Intralot
Looking to the second quarter, group revenue fell 4.8% to €79.6 million, with gross profit also down 21.7% to €25.6 million. Adjusted EBITDA, however, increased 2.2% to €30 million.
Earnings before interest and tax climbed 15.4% to €13.1 million, while earnings before tax rocketed by 810% to €6.2 million.
However, NIATMI in the second quarter was lower by 34% at €0.5 million. This meant that Intralot remained in the black for the three-month period.
Revenue at Intralot in H1 reached €168 million although the group fell to a net loss.