-- 2.6% global same-store sales growth in instant ticket and draw games and double-digit increase in product sales revenue; prior year comparisons impacted by ongoing multi-state jackpot and LMA dynamics -- Loss from continuing operations of $60 million includes $99 million non-cash impact of foreign currency translation and $21 million restructuring charge associated with upsized OPtiMa 3.0 cost reduction program -- Delivered Adjusted EBITDA of $274 million, demonstrating resilient profit despite incremental investments in the business and multi-state jackpot and LMA dynamics -- Strong financial condition with significant liquidity of $2.9 billion -- 2025 Adjusted EBITDA outlook reaffirmed, cash flow improved -- Launching $250 million accelerated share repurchase program
LONDON, July 29, 2025 /PRNewswire/ -- Brightstar Lottery PLC ("Brightstar" or the "Company") (NYSE:BRSL) today reported financial results for the second quarter ended June 30, 2025. Today, at 8:00 a.m. EDT, management will host a conference call and webcast to present the results; access details are provided below.
"We achieved several important milestones over the last few months," said Vince Sadusky, CEO of Brightstar. "We secured the Italy Lotto license through November 2034, closed the sale of our Gaming & Digital business for $4 billion in cash, and announced plans to return significant capital to shareholders. With a singular focus on lottery and unmatched industry expertise, we are well positioned to create value for all stakeholders with our mission to elevate lotteries and inspire players around the world."
"Our second quarter results reflect sustained global demand for instant ticket and draw games," said Max Chiara, CFO of Brightstar. "We are investing in key initiatives to drive sustainable, long-term growth, while also delivering structural cost reductions to right-size the business. The Company's attractive profit profile and strong, predictable cash flows support our balanced approach to capital allocation."
Overview of Consolidated Second Quarter 2025 Results
Quarter Ended --------------- ------- --------- All amounts from continuing operations June 30, --------------- Constant Y/Y Currency 2025 2024 Change Change --------------------------------------- ------- ------ ------- --------- ($ in millions, except per share data) GAAP Financials: --------------------------------------- Revenue 631 613 3 % -- % Operating income 139 179 (22) % (27) % Operating income margin 22.0 % 29.2 % Income from continuing operations (60) 84 NA Income from continuing operations margin (9.5) % 13.8 % Earnings per share - diluted $(0.47) $0.21 NA Net cash provided by operating activities 265 250 6 % Cash and cash equivalents 1,309 374 250 % Non-GAAP Financial Measures: --------------------------------------- Adjusted EBITDA 274 290 (5) % (9) % Adjusted EBITDA margin 43.5 % 47.3 % Adjusted earnings per share - diluted $0.12 $0.20 (41) % Free cash flow 167 210 (21) % Net debt 5,240 5,173 1 % Note: Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures, and other disclosures regarding non-GAAP financial measures, are provided at the end of this news release
Key Highlights
-- Successful completion of Gaming & Digital sale for approximately $4.0 billion of net cash proceeds on July 1, 2025. -- Secured several meaningful contract wins and extensions including a nine-year Lotto operator license in Italy, an eight-year contract in Missouri which includes a fully-integrated OMNIA$(TM)$ retail and digital solution, and several multi-year instant ticket printing contract extensions. -- Expanding OPtiMa 3.0 cost reduction program to $50 million to right-size the business following the Gaming & Digital sale.
Second Quarter 2025 Financial Highlights
Second quarter revenue was $631 million, up 3% or stable at constant currency.
-- Instant ticket & draw same-store sales increased across geographies with Italy increasing 3.7%, U.S. higher by 0.6%, and Rest of World climbing 8.4%. -- Product sales rose 59% on higher instant ticket printing and terminal sales. -- Foreign currency translation had a positive impact on growth. -- Growth from the drivers above was partially offset by elevated U.S. multi-state jackpot activity and associated LMA incentives in the prior year.
Loss from continuing operations was $60 million compared to income from continuing operations of $84 million in the prior year period.
-- Incurred a foreign exchange loss versus a foreign exchange gain in the prior year, primarily reflecting the non-cash impact of fluctuations in the EUR/USD exchange rate on debt. -- Operating income was lower, driven by the high profit flow-through from elevated U.S. multi-state jackpot sales and associated LMA incentives in the prior year and restructuring charges related to the expanded OPtiMa 3.0 cost reduction program in the current year. -- Increased provision for income taxes. -- Dynamics noted above were partially offset by reduced interest expense.
Adjusted EBITDA was $274 million compared to $290 million in the prior-year period, demonstrating resiliency despite incremental investments in the business and multi-state jackpot and LMA dynamics.
-- Prior year results include the high profit flow-through from elevated U.S. multi-state jackpot sales and associated LMA incentives. -- Selling, general, and administrative costs were modestly higher as ongoing investments in the business were partially offset by OPtiMa cost savings. -- The Q2'25 period benefited from positive foreign currency translation.
Diluted loss per share from continuing operations was $0.47 compared to diluted earnings per share from continuing operations of $0.21 in the prior year. Adjusted diluted earnings per share from continuing operations was $0.12 compared to $0.20 in the prior year, primarily driven by lower operating income.
YTD 2025 Financial Highlights
Year-to-date revenue of $1.2 billion compares to $1.3 billion in the prior-year period.
-- The decline was due to higher U.S. multi-state jackpot activity and associated LMA incentives in the prior year. -- Global instant ticket & draw same-store sales rose 1.2%.
Loss from continuing operations was $52 million compared to income from continuing operations of $200 million in the prior year period.
-- Lower operating income, primarily due to the items affecting Adjusted EBITDA as noted below. -- Foreign exchange loss versus foreign exchange gain in the prior year, primarily reflecting the non-cash impact of fluctuations in the EUR/USD exchange rate on debt.
Adjusted EBITDA of $524 million compares to $617 million in the prior-year, primarily driven by high profit flow-through from elevated U.S. multi-state jackpot sales and associated LMA incentives in the prior year, partially offset by positive foreign currency translation.
Diluted loss per share from continuing operations was $0.59 compared to diluted earnings per share from continuing operations of $0.56 in the prior year. Adjusted diluted earnings per share from continuing operations of $0.20 compares to $0.47 in the prior year primarily driven by lower operating income, partially offset by reductions in net interest and income tax expense.
Net debt was $5.2 billion compared to $4.8 billion at December 31, 2024. The increase was primarily driven by an approximate $340 million impact from fluctuations in the EUR/USD exchange rate. Net debt leverage was 3.0x pro forma for $2 billion debt reduction completed in July.
Cash and Liquidity Update
Total liquidity was $2.9 billion as of June 30, 2025 with $1.3 billion in unrestricted cash and $1.6 billion in additional borrowing capacity from undrawn credit facilities.
Other Developments
The Company plans to launch a $250 million accelerated share repurchase program $(ASR)$ by entering into an accelerated share repurchase agreement with a counterparty bank. The Company plans to execute the ASR as part of its $500 million share repurchase authorization outlined below and in accordance with the share repurchase authorization provided by the Company's shareholders at the Company's 2025 Annual General Meeting. The Company has been informed by De Agostini S.p.A., that it does not intend to participate in the ASR.
The Company's Board of Directors declared a quarterly cash dividend of $0.20 per common share with a record date of August 12, 2025 and a payment date of August 26, 2025.
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