Group 1: Telecommunications Industry - Singapore's telecommunications market is dominated by three major players: Singtel, StarHub, and M1, with M1 pending a merger with SIMBA Telecom [2] - Malaysia's telecommunications landscape features a consolidated giant, CelcomDigi Berhad, along with Maxis Berhad, Telekom Malaysia, and Axiata Group Bhd [2] - Both Singaporean and Malaysian telcos face heavy capital requirements and hold significant amounts of debt due to the high costs of network infrastructure [3] Group 2: Consumer Brands and Investment Opportunities - The brand "Maggi" has become synonymous with instant noodles in Malaysia, similar to how Scotch Tape and Google represent their respective categories [5] - Nestlé Malaysia, which has been operating for over 100 years, serves as a hub for halal products and is publicly traded on the Malaysian stock market [6] - Heineken Malaysia Bhd, which controls the rights to Tiger Beer, is another investment opportunity available in Malaysia [7] Group 3: Lottery and Gaming Sector - Singapore Pools operates a significant lottery draw, but shares are not available for investment in Singapore [8] - In contrast, Sports Toto Berhad is publicly traded in Malaysia and operates over 600 outlets across the country [9] Group 4: Aviation Industry - The Penang International Airport expansion is expected to enhance capacity by 2028, while Singapore's Changi Airport is developing a new Terminal 5, projected to be operational by the mid-2030s [10] - Malaysia Airports Holdings Bhd is a publicly traded company that offers investment opportunities in the aviation sector, unlike the government-owned Changi Airport Group in Singapore [11]

Group 1 - Pollard Banknote (PBL:CA) is identified as a potential investment opportunity within the iLottery sector that has not yet realized its growth potential [3] - The company has experienced a decline in stock performance since the last 'Strong Buy' recommendation [3]

Core Insights - Pollard Banknote experienced a "transformational" year in 2025, marked by significant digital lottery launches and major contract wins, including a 12-year contract with Belgium's Nationale Loterij valued at approximately CAD 289 million [2][4][6] Financial Performance - Fourth-quarter revenue increased to CAD 150.8 million from CAD 140.3 million year-over-year, driven by higher average instant ticket selling prices and increased sales from Kansas iLottery and charitable gaming [5][7] - Adjusted EBITDA rose to CAD 27.7 million from CAD 25.2 million, with net income turning positive at CAD 4.6 million compared to a net loss of CAD 1.8 million in the previous year [13] - Combined sales, including Pollard's share of NeoPollard Interactive, reached CAD 185 million, up 10% from CAD 168.2 million a year earlier [8] Margins and Costs - Gross margin fell to 14.9% from 16.0%, primarily due to startup losses from the Kansas iLottery and higher amortization costs [10][9] - Cost of sales increased to CAD 128.4 million, attributed to higher charitable gaming volumes and increased iLottery operating costs [9] Future Outlook - Management anticipates margin improvement in 2026, targeting a return to the "very low 20% range" as Kansas startup losses and Minnesota eTab pressures are expected to ease [14][15] - First-quarter 2026 is projected to be significantly better than Q4 2025, with faster ramp-up in Minnesota eTabs [15] Strategic Developments - The company launched its first iLottery solution with the Kansas Lottery in February 2025, noted for being the fastest rollout of a greenfield iLottery operation [3][6] - Pollard secured a primary supply role for instant tickets with the California Lottery, the largest seller of instant tickets in the U.S., under a 12-year contract [6]

Financial Data and Key Metrics Changes - The company reported a full-year EBITDA of $111 million, an 11% increase over 2024, with an EBITDA margin of 37% [19] - The fourth quarter EBITDA margin reached a record 42%, the highest in the company's history [5] - The company is projecting 2026 EBITDA guidance of $112 million to $118 million, with a midpoint of $115 million representing low double-digit growth over 2025 [6][19] Business Line Data and Key Metrics Changes - The interactive business grew revenue and EBITDA by 53% and 60% respectively in the fourth quarter [4] - More than 80% of the company's revenue is recurring, indicating a stable revenue stream [9] - The digital business accounted for 51% of EBITDA in 2025 and is expected to grow to over 60% by 2027 [19][20] Market Data and Key Metrics Changes - The company is experiencing strong growth in the North American market, particularly with the launch of its Virtuals business with BetMGM [10] - iGaming is more than three times the size of sports betting in states where they compete head-to-head, presenting a significant opportunity for the company [12] Company Strategy and Development Direction - The company is focusing on an asset-light business model, which is positively impacting free cash flow and is expected to continue through 2026 [7][9] - The company plans to combine its gaming and remaining leisure businesses into one reporting entity called Retail Solutions, simplifying its story and reflecting its current management structure [20] - The company is targeting to de-leverage to 2.5-3 times net leverage by year-end 2026 [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing momentum of the interactive business, with no signs of slowing down [11][35] - The company is optimistic about the potential for additional states to legalize iGaming, which could significantly enhance growth [12] - Management noted that the impact of tax changes in the UK is manageable and that operators are adjusting their strategies accordingly [24][25] Other Important Information - The company launched a cloud-based lottery platform, which is expected to generate significant revenue in the coming years, particularly outside the U.S. [61][63] - The company is focused on maintaining strong relationships with key customers, which is crucial for contract renewals and product innovation [9] Q&A Session Summary Question: Impact of UK tax changes on guidance - Management indicated that UK operators are adjusting their RTP and bonusing structures to mitigate the impact of tax changes, and they feel comfortable with the expected outcomes [24][25] Question: Capital allocation strategy amid changing valuations - Management acknowledged the potential for share repurchase but emphasized a focus on deleveraging, while also considering stock valuations in their asset allocation [29][30] Question: Expectations for iGaming market share growth - Management noted that the momentum in the interactive business is expected to continue, with strong performance from major customers [36][38] Question: Retail strategies in response to tax changes - Management stated that operators are looking to balance online and retail business to mitigate tax impacts, with some lower-performing shops being taken over by independent operators [42][45] Question: Virtual Sports revenue expectations - Management acknowledged a mixed performance in Virtual Sports but expressed confidence in margin sustainability and ongoing revenue growth initiatives [46][49]

Financial Data and Key Metrics Changes - The company reported a full-year EBITDA of $111 million, an 11% increase over 2024, with an EBITDA margin of 37% [19] - The fourth quarter EBITDA margin reached a record 42%, marking a significant improvement [5] - The company is projecting 2026 EBITDA guidance of $112 million to $118 million, indicating low double-digit growth over 2025 [5][19] Business Line Data and Key Metrics Changes - The interactive business grew revenue and EBITDA by 53% and 60% respectively in the fourth quarter [4] - The digital business accounted for 51% of EBITDA, with expectations to grow to over 60% by 2026 [19] - The company is focusing on a CapEx-light business model, which is expected to improve cash flow significantly [9] Market Data and Key Metrics Changes - The company is optimistic about expanding its footprint in North America, particularly in Illinois, where it has strong relationships with key customers [12] - iGaming is projected to be more than three times the size of sports betting in states where they compete directly, presenting a significant opportunity [18] Company Strategy and Development Direction - The company is transforming towards a higher growth, higher margin, and less capital-intensive business model [21] - A new cloud-based lottery platform has been launched, with plans to expand its market presence outside the U.S. [63] - The company is combining its gaming and leisure businesses into one reporting entity called Retail Solutions to reflect its current management structure [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth momentum, particularly in the interactive segment, with no signs of slowing down [34][70] - The company is prepared for potential impacts from tax changes in the UK, with strategies in place to mitigate effects [25] - Management remains optimistic about the company's ability to navigate challenges in the operating environment, including geopolitical factors [56] Other Important Information - The company is targeting to reduce net leverage to 2.5-3 times by year-end 2026, which may lead to lower interest rates and better financing options [6] - The company has secured long-term contracts with major customers like bet365 and Entain, ensuring a stable revenue stream [48] Q&A Session Summary Question: Impact of UK tax changes on guidance - Management indicated that customers are adjusting their RTP and bonusing structures to mitigate tax impacts, and they feel comfortable with the expected outcomes [25] Question: Capital allocation strategy amid changing valuations - Management acknowledged the potential for stock repurchase or acquisitions but emphasized a focus on deleveraging at present [28] Question: Expectations for digital business growth - Management confirmed ongoing momentum in the interactive business and highlighted opportunities in new markets like Brazil [34] Question: Retail vs. online marketing strategies - Management noted that operators are looking to balance their marketing strategies between retail and online to mitigate tax impacts [44] Question: Performance of Virtual Sports and Bet Builder product - Management reported modest growth in the Bet Builder product and acknowledged some softening in the Brazil market, but remains optimistic about margin sustainability [50]

Core Insights - Brightstar Lottery PLC received its first score in the 2025 S&P Corporate Sustainability Assessment, achieving an overall score of 56, which is nearly double the industry average of 31 [1] - The company has been included in the S&P Global Sustainability Yearbook for 2026, highlighting its strong sustainability performance as a pure play lottery company [1] Company Performance - Brightstar Lottery's score of 56 reflects its commitment to sustainability and positions it as a leader in the lottery industry [1] - The company emphasizes integrating sustainable practices into its corporate identity through strategic efforts focused on stakeholders [1] Industry Context - The S&P Corporate Sustainability Assessment evaluates companies across 61 industries, using a best-in-class approach to score companies on approximately 20 financially relevant sustainability criteria [1] - Brightstar Lottery serves nearly 90 lottery customers globally and is a primary technology provider to 26 of the 46 lottery jurisdictions in the U.S. [1]

Core Viewpoint - Brightstar Lottery PLC is taking a leadership role in responsible gaming by funding the International Problem Gambling and Gaming Certification Organization, marking it as the first lottery industry supplier to do so [1] Group 1: Company Initiatives - Brightstar's funding will support the expansion of IPGGC programs, including the Global Gambling Counselor Certification and the new Collegiate Counselors Gambling Certification [1]

Core Insights - Brightstar Lottery PLC (NYSE:BRSL) is identified as one of the best undervalued UK stocks to invest in, with fiscal Q4 2025 results showing a revenue growth of 2.61% year-over-year to $668 million, exceeding expectations by $4.57 million, and an EPS of $0.36, which also surpassed estimates by $0.04 [1][2] Financial Performance - The CEO, Vince Sadusky, described the quarter as "better-than-expected" in terms of revenue and profit growth, driven by a 3.5% year-over-year increase in same-store sales [2] - Revenue growth was attributed to increased US multistate jackpot activity and strong iLottery performance, with adjusted EBITDA for the quarter growing by 5% year-over-year to $304 million, although partially offset by UK contract transition costs [2] Future Outlook - Management anticipates fiscal 2026 revenue to be in the range of $2.50 billion to $2.55 billion, with adjusted EBITDA expected to be between $1.16 billion and $1.19 billion [3] Company Overview - Brightstar Lottery PLC operates as a pure-play global lottery company, providing end-to-end solutions including lottery management services, instant lottery systems, land-based operations, and iLottery platforms [4]

Core Viewpoint - Brightstar Lottery PLC has filed its 2025 Annual Report on Form 20-F with the U.S. Securities and Exchange Commission, which includes audited financial statements for the year ended December 31, 2025 [1] Company Overview - Brightstar Lottery PLC is a global leader in the lottery industry, focusing on innovation and forward-thinking strategies [1] - The company operates as a premier pure play global lottery provider, delivering secure technology and comprehensive solutions [1] - Brightstar serves nearly 90 lottery customers across six continents and is the primary technology provider to 26 of the 46 lottery jurisdictions in the U.S. [1] - The company has approximately 6,000 employees [1] Financial Reporting - The 2025 Annual Report on Form 20-F is available in the Investor Relations section of the company's website and can be requested in hard copy by all holders of its securities [1] - The report complies with Section 203.01 of the New York Stock Exchange Listed Company Manual [1]

Core Viewpoint - The company's performance was bolstered by the resilience of its global lottery portfolio, although normalized growth was impacted by challenges from the UK technology contract transition [1] Group 1: Sales and Growth - Same-store sales increased nearly 4% for the quarter, but normalized growth was only 0.5% due to headwinds from the UK technology contract transition [1] - Management noted an acceleration in North America during the second half, attributed to improved multistate jackpot activity and successful game launches in Indiana and New Jersey [1] Group 2: Cost Management and Capital Allocation - The OPTIMA program successfully achieved cost reductions, enabling the company to reallocate capital towards high-growth digital and technology initiatives [1] Group 3: Strategic Opportunities - Securing the nine-year Italy Lotto license is seen as a foundational catalyst for significant B2C digital expansion across iLottery, iCasino, and sports betting [1] - The Sao Paulo greenfield opportunity is highlighted as a rare large-market launch, utilizing a 50/50 joint venture to mitigate risk while developing a scalable retail and digital ecosystem [1] Group 4: Valuation Insights - Management pointed out a significant valuation disconnect, indicating that the company trades at a discount to peers despite having more stable cash flows and higher margins compared to adjacent gaming sectors [1]