UK's Brightstar Lottery Q3 revenue falls on higher amortization

Overview

• UK-based lottery operator's Q3 revenue fell 4% yr/yr, driven by higher service revenue amortization

• Adjusted EBITDA down 2% yr/yr; adjusted EPS dropped mainly due to non-cash amortization

• Company deployed over $200 mln for dividends and share repurchases year-to-date

Outlook

• Company now sees FY26 revenue of $2.435-$2.455 bln, down from $2.50-$2.55 bln prior

• Company expects FY26 adj EBITDA of $1.14-$1.16 bln, down from $1.16-$1.19 bln prior

• Company maintains FY26 cash from operations outlook at about $750 mln, excluding Italy Lotto payment

Result Drivers

• PRODUCT SALES AND SERVICE REVENUE - Co said growth was led by higher product sales and increased software service revenue, especially from new contracts and Italy B2C expansion

• SERVICE REVENUE AMORTIZATION AND JACKPOT PERFORMANCE - Co cited higher service revenue amortization from the Italy Lotto license and lower U.S. multi-state jackpot sales as key drags on results

• COST EFFICIENCIES - Co said cost efficiencies contributed to profitability, offsetting some revenue pressures

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 16 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)