The Apostle Manthus
The Bally’s Intralot (BYLOT) It presented in the first quarter of 2026 the first comprehensive imprint of the new unified organization after the acquisition of Bally’s International Interactive and the reading of financial data has more depth than a simple increase in turnover.
The group appeared revenue €ECU 268.1 million, custom EBITDA €ECU 100.2 million and profitability margin 37,4%. On a 12-month pro-forma basis, the unified organism is now moving at levels €1,06 billion revenue and €EBITDA 427,2 million.
What changes substantially for the market is the composition of the business model. Bally’s Intralot now has much stronger exposure to higher efficiency online activities, as the iGaming and sports betting participated with about 75% in total turnover The first quarter.
For investors internationally monitoring the gaming industry, this is of particular importance, as markets tend to value with higher multipliers companies showing increased participation in online activities, recurring revenues and strong conversion of EBITDA into cash flows.
At this point the group's performance begins to stand out.
Operating cash flows almost doubled to €84.4 million Even more substantial was production free cash flow €ECU 59.1 million, despite increased interest payments, investments, reorganisations and purchase of own shares.
In such companies, cash production is the key indicator of profitability. And Bally’s Intralot already shows that the new composition of the group has high cash efficiency.
A second point which deserves special attention concerns stability of the B2B sector. Despite a 10% reduction in revenues, mainly due to exchange pressure and lower lottery activity in the US, the B2B EBITDA remained generally stable.
This practically means that the company maintained its profitability despite a decrease in turnover, which is usually linked to more efficient cost control and better business mix.
The dynamics of the British market are also of particular interest. Management reported an increase 10.5% in UK online business, while preliminary April figures moved even higher.
This market is one of the most mature and competitive internationally. Therefore, such growth rates have a particular readership for institutional investors.
On the other hand, the market continues to closely monitor the high lending of the group, which was formed in €1,49 billion However, the pro-forma net leverage ratio in 3,5x EBITDA is considered manageable for international gaming operators with strong cash flow and recurring revenues.
The market will continue to assess mainly the rate of seduction over the next three months. If the company continues to produce free cash flows at these levels, the financial picture can be significantly improved over a relatively short period of time.
At the same time, the new 12 year contract with the Greek Lotteries of the Allwyn Hellas Group strengthens the predictability of future revenue and brings to the fore the strong know-how of Intralot in the regulated lottery space.
Another point that the market is likely to underestimate is the position Bally’s Intralot can acquire in the new wave of concentration of online gaming in Europe. The administration itself had pointed out to analysts that the large increase in taxation in online games in the UK by 21% in 40% creates pressure conditions for several operators and at the same time acquisition opportunities for groups with high profitability margins and strong cash flows.
Within this framework is also the interest in Evoke plc. Bally’s Intralot confirmed that she is in talks about a possible public proposal in 0,50 pounds per share, with a combination of stock swaps and partial cash payment. The evaluation of the proposal corresponds approximately to 5,25 times EV/EBITDA, significantly below the levels at which Bally’s Intralot herself is valued.
Evoke carries a high loan and in recent years showed a weak trade course, mainly around its development online brand 888 and its lowest efficiency William Hill network retail betting, already moving on to a business closure program on the British market. For Bally’s Intralot, such a move could add size, client base and stronger online brands In an attractive valuation, it is, of course, sufficient to reach a functional agreement with Evoke's creditors on debt management in the coming years.
So if the possible agreement with EVoke is added, then Bally’s Intralot not only buys additional turnover but places on a mature market, identifiable brands, customer base and potential cost synergies at a time when several competitors are pressured by taxes, debt and lower margins. This is why the evaluation of the proposal in 5,25 times EV/EBITDA is of particular importance, as allows the group to add a size below its own relevant valuationAs long as the agreement with creditors is properly locked.
At the same time, the group continues to hunt large projects in the U.S. lottery, in VLTs monitoring in Australia, and has left open and the possibility of expanding online gaming to markets such as Romania, Spain and Greece.
The main conclusion from the first quarter is that Bally’s Intralot has now passed into a completely different business category than in previous years. And that sooner or later changes the way the market will start reading it.
In terms of diagram analysis, the share has recently broken down the short-voltage downward line."R1"in €1,14, opening up up ground to buyers for movement within the range of €1,20 with €1,242.
* Apostolos Manthos is responsible for technical analysis & investment strategy
** The content of the Article may in no way be regarded as advice or suggestion or recommendation or invitation to purchase or sell any share or investment or financial product traded on an organised or non-market.
