Brightstar Lottery (BRSL) Q4 2024 earnings summary

Executive summary

• Completed sale of Gaming & Digital business for $4.05 billion in cash, transforming into a pure-play lottery company and shifting focus to the lottery segment.

• FY 2024 revenue from continuing operations was $2.51 billion, driven by strong instant ticket and draw game sales across geographies, with robust performance in the U.S., Canada, and Italy.

• Generated over $1 billion in consolidated cash from operations and approximately $660 million in free cash flow, with 80%+ from lottery operations.

• Income from continuing operations reached $271 million for FY 2024, with a 10.8% margin.

• Pro forma net debt leverage improved to 2.4x after debt reduction from sale proceeds, the lowest in company history.

Financial highlights

• FY 2024 revenue was $2.51 billion, down 1% year-over-year; Q4 revenue was $651 million, down 4% year-over-year.

• Adjusted EBITDA for FY 2024 was $1.17 billion (46.6% margin), down 4% year-over-year; Q4 Adjusted EBITDA was $290 million (44.5% margin), down 8%.

• Free cash flow for 2024 was $540 million, down 30% from the prior year; $161 million paid in dividends.

• Diluted EPS from continuing operations was $0.57 for FY 2024; Adjusted EPS was $0.67, down from $0.95.

• Net debt at year-end was $4.78 billion, down from $5.16 billion in 2023.

Outlook and guidance

• FY 2025 revenue expected at $2.55–$2.65 billion, up low- to mid-single digits; global same-store sales up low-single digits.

• Adjusted EBITDA guidance for FY 2025 is $1.10–$1.15 billion; Q1 2025 Adjusted EBITDA expected down ~$70 million year-over-year due to lower U.S. multi-state jackpot activity.

• Capital expenditures for 2025 estimated at ~$450 million, focused on contract wins and extensions.

• Net cash used in operating activities projected at ~$300 million in 2025, including €800 million Italy Lotto license fee.

• Growth expected to resume in H2 2025 after Q1 softness.