Bally’s Intralot nearly triples revenue but debt continues to head towards €2bn mark

(AsiaGameHub) –   Bally’s Intralot achieved a significant year-on-year increase in turnover during Q1 2026, as the company’s acquisition of Bally’s International Interactive (BII) substantially expanded its scale, online gaming operations, and profitability.

The newly combined entity reported first-quarter revenue of €268.1 million (£232.7m), marking an 180.5% increase compared to €95.6 million in the same period last year. Adjusted EBITDA surged by 231.8% to €100.2 million (Q1 2025: €30.2 million).

The EBITDA margin improved to 37.4%, up from 31.6% in the corresponding quarter of the previous year.

This growth was primarily driven by the October 2025 acquisition of BII, which contributed €183.9 million in revenue and €72.7 million in adjusted EBITDA during the quarter, achieving a 39.5% EBITDA margin.

Due to the deal, Athens-listed Bally’s Intralot has transformed into a larger online-focused gaming operator, with its strategic ambitions beginning to materialize as it pursues a cost-effective acquisition of LSE-listed evoke.

Management highlighted sustained performance in the company’s UK online business, where revenue grew by 10.5% year-over-year during the quarter.

This upward trajectory could accelerate significantly if the £225 million deal for the William Hill owner proceeds, although negotiations were postponed until 8 June.

Preliminary figures for April indicated continued momentum in the UK market, with revenue reaching £52 million—an 11.5% increase from the prior year—despite upcoming changes in gaming duty and broader regulatory challenges affecting the sector.

Bally’s Intralot’s B2B challenges

While the BII acquisition fueled headline growth, legacy operations delivered mixed results.

Excluding BII, legacy revenue declined by 11.9% on a reported basis and 7.1% in constant currency terms.

The downturn was attributed to foreign exchange pressures, weaker lottery activity in the US, and adjustments to the compensation model at Turkish betting platform Bilyoner, which saw revenue fall by 19.2% to €16.6 million.

Despite softer revenue trends in legacy segments, profitability demonstrated resilience, with legacy adjusted EBITDA declining only slightly while maintaining EBITDA margins above 32%.

The company also underscored the stability of its B2B lottery technology division, where EBITDA remained stable despite lower revenue. However, US B2B revenue dropped by 6.2%, and overall B2B revenue decreased by 10% to €63.5 million.

On a pro forma basis, combining Bally’s Intralot and BII for the trailing twelve months ending 31 March 2026, the group would have generated €1.06 billion in revenue and €427.2 million in adjusted EBITDA.

Tackling the debt situation

However, the acquisition has substantially increased the company’s debt burden. As of 31 March 2026, Bally’s Intralot recorded total debt of €1.75 billion and adjusted net debt of €1.49 billion.

The company maintains solid liquidity, supported by €257.3 million in cash and a fully undrawn €160 million revolving credit facility. Nevertheless, this elevated debt level has raised concerns regarding a potential evoke acquisition.

Evoke itself carries £1.9 billion in debt; thus, a merged entity would have over £3.4 billion in liabilities—a key factor that may have contributed to the delay in yesterday’s negotiations.

Despite these financial hurdles, Bally’s Intralot Chief Executive Officer Robeson Reeves expressed strong interest in acquiring the struggling group.

“We see a compelling opportunity to bring our operating model to a significantly larger business,” he stated.

Management also pointed to ongoing expansion opportunities following the quarter—including recently finalized agreements such as a new 15-year electronic gaming machine monitoring license in Victoria, Australia, and a long-term lottery and sports betting technology partnership with Chile’s state-run lottery operator, Polla Chilena de Beneficencia.

The primary challenge ahead will be managing continued growth alongside debt reduction, particularly as the company navigates increasingly stringent regulatory landscapes and potential major mergers and acquisitions.