#London #United Kingdom #share repurchase #Q2 Results #Brightstar Lottery

Brightstar Lottery PLC Reports Second Quarter 2025 Results

On July 29, 2025, Brightstar Lottery PLC (NYSE: BRSL) unveiled its financial outcomes for the second quarter of 2025, highlighting a global same-store sales growth of 2.6% in instant ticket and draw games, coupled with a commendable double-digit surge in product sales revenue. CEO Vince Sadusky remarked on the quarter's milestones, stating, "We achieved several important milestones over the last few months." Among these, the company successfully secured the Italian Lotto license, valid until November 2034, and finalized the sale of its Gaming Digital business for an impressive $4 billion in cash. Additionally, plans have been announced to return considerable capital to shareholders through accelerated share repurchase programs.

Financial Overview

The financial highlights of the quarter include a slight increase in revenue to $631 million, reflecting a 3% year-over-year rise, while operating income fell to $139 million, down 22% from the previous year. The loss from continuing operations totaled $60 million, attributed largely to non-cash effects stemming from currency translations and restructuring charges associated with a comprehensive cost reduction initiative.

Despite these challenges, the company reported an Adjusted EBITDA of $274 million, underscoring its capacity to maintain resilient profits amid ongoing investments in the business. CFO Max Chiara noted, "We are investing in key initiatives to drive sustainable, long-term growth while also delivering structural cost reductions to right-size the business."

Key Performance Indicators

• - Revenue: $631 million, a 3% increase year-over-year.
• - Operating Income: $139 million, down 22% compared to 2024.
• - Adjusted EBITDA: $274 million, a 5% decline from last year's $290 million, demonstrating ongoing operational resilience despite business headwinds.
• - Loss from Continuing Operations: $60 million versus a profit of $84 million a year prior.

According to the company, growth in instant ticket and draw games contributed positively, especially in Italy, which saw a 3.7% increase in same-store sales. The U.S. market reported a modest increase of 0.6%, whereas the rest of the world experienced a strong rise of 8.4% in similar categories.

Strategic Initiatives and Shareholder Value

The company is shifting its focus towards enhancing shareholder value through several strategic actions. Brightstar plans to launch a $250 million accelerated share repurchase program in conjunction with a broader $500 million share buyback strategy. Additionally, a quarterly cash dividend of $0.20 per common share was declared, reinforcing the company's commitment to returning value to its shareholders.

The board also authorized a special cash dividend of $3.00 per share, underpinning the company's robust liquidity position of $2.9 billion at the end of the quarter.

Looking Ahead

Looking forward to the remainder of 2025, Brightstar reaffirms its outlook for Adjusted EBITDA, estimating approximately $1.1 billion. The company expects recreational and commercial demands to evolve optimally, consistent with the strategic efforts to foster growth while capitalizing on operational efficiencies. Last quarter's challenges, including elevated multi-state jackpot activities, are anticipated to stabilize, allowing the company to optimize its offerings and enhance profitability.

In conclusion, Brightstar Lottery PLC's recent quarterly results showcase its solid footing in the lottery sector despite several operational challenges. With a clear focus on strategic investments and strong liquidity, the company is well positioned to navigate the fiscal landscape while prioritizing shareholder returns and long-term growth.