Bally's Intralot H1 revenue grows but UK duty hike hits EBITDA

Bally's Intralot has reported group revenue of €544.2 million for the first half of 2026, a period bolstered by the full inclusion of its online arm. The Bally's International Interactive (BII) division was the primary growth driver, generating €377.6 million of the total revenue. For its first full six-month reporting period, the group posted an adjusted EBITDA of €184.8 million, of which the BII segment contributed €132.8 million.

UK duty increase impacts profitability

Despite strong underlying performance in the United Kingdom, where Q2 net gaming revenue grew 11.6% year-on-year on a constant currency basis, profitability was significantly affected by new tax measures. The near-doubling of the remote gaming duty from 21% to 40% as of 1 April created an estimated €34 million adverse impact on adjusted EBITDA in the second quarter. The company reported that it had managed to mitigate approximately 65% of this financial pressure.

A breakdown of the second quarter shows a 3% sequential rise in group revenue to €276.1 million. Performance was strong in key markets, with UK revenue reaching an all-time high after a 5.3% increase from Q1, and revenue from Spain surging 9.7% over the same period. The BII division’s revenue grew 5.4% quarter-on-quarter to €193.8 million. However, reflecting the tax headwinds, group adjusted EBITDA for Q2 dropped to €84.6 million from €100.2 million in Q1.

Legacy decline and financial position

In contrast to the growth in its interactive arm, the legacy Intralot business saw revenues fall to €166.5 million in H1, compared to €182 million in the same period last year. The decline was most pronounced in its B2B segment, where revenue decreased by 10.1% to €128.1 million. This included an 11.7% drop in US B2B revenue on a constant currency basis. The legacy B2C segment also recorded a slight revenue dip to €38.5 million from €39.5 million year-on-year.

Bally's Intralot ended the half-year with an adjusted net debt of €1.62 billion and a pro forma adjusted net leverage ratio of 4.05x. The company attributed the elevated leverage in part to an €85 million capital expenditure for a 15-year electronic gaming machine monitoring licence in Victoria, Australia. For the 12 months ending 30 June 2026, the pro forma combined business generated €1.06 billion in revenue and an adjusted EBITDA of €399.9 million.

Evoke acquisition progresses

The company is also moving forward with its planned acquisition of Evoke, which was first announced on 5 June for a consideration of approximately £243.1 million. A general meeting for Evoke shareholders to approve the deal is scheduled for 17 August, with holders of over 40% of the company's share capital having already declared their intention to vote in favour. The move comes as Evoke faces similar market pressures, with its own Q2 results showing a 12% fall in EBITDA following a £46 million year-on-year rise in gaming duties, largely stemming from the UK.