Intralot S.A. Integrated Lottery Systems and Services (ATSE:INLOT) 2025 Capital Markets Day Transcript

Summary of Intralot S.A. Integrated Lottery Systems and Services and Bally's International Interactive Capital Markets Day Company Overview - Companies Involved: Intralot S.A. Integrated Lottery Systems and Services (ATSE:INLOT) and Bally's International Interactive - Event Date: September 08, 2025 - Key Speakers: Robson Reeves (CEO of Bally's) and Nikos (CEO of Intralot) Core Points and Arguments 1. Strategic Combination: The merger aims to create a global iGaming and lottery champion with over €1 billion in revenue and significant free cash flow generation [2][4] 2. Market Position: Intralot operates in over 40 jurisdictions with long-term contracts averaging 16 years, while Bally's is a multi-brand iGaming operator with a 14% market share in the UK [3][10] 3. Financial Projections: Post-synergy, the combined entity expects around €450 million in EBITDA and a free cash flow conversion of approximately 95% [4][12] 4. Acquisition Details: The acquisition of Bally's International Interactive division is valued at €2.7 billion, with €1.53 billion in cash and €1.136 billion through new share issuance [5][9] 5. Financing Structure: The acquisition will be financed through a bridge loan of €1.6 billion and a planned equity increase of €400 million [6][8] Industry Insights 1. Market Growth: The iGaming and lottery sectors are expected to double in the U.S. from 2024 to 2029 due to legislative changes and increasing demand [14][15] 2. Digital Convergence: The combination of iLottery and iGaming is seen as a critical growth driver, leveraging technology to enhance player experience [10][13] 3. Total Addressable Market (TAM): The combined entity aims to access a TAM of approximately €250 billion, with significant opportunities in both lottery and iGaming [11][19] Technology and Integration 1. Complementary Technology: The integration of Intralot's Player X Suite and Bally's Vitruvian platform is expected to enhance operational efficiency and customer data management [16][17] 2. Rapid Deployment: The new technology stack will be operational shortly after the acquisition, allowing for quick market entry [4][17] Financial Performance 1. Revenue and EBITDA: Intralot reported €356 million in revenue for 2024 with a 37% EBITDA margin, while Bally's aims for €270 million in EBITDA at a 39% margin in 2024 [48][35] 2. Cash Flow Generation: The combined entity is projected to generate significant cash flow, with a focus on reinvesting earnings for growth [29][64] Regulatory and Governance 1. Corporate Governance: The new group will remain listed on the Athens Stock Exchange, adhering to EU corporate governance standards [6][8] 2. Regulatory Approvals: All necessary regulatory approvals from the UK and Gibraltar have been obtained [8][9] Additional Considerations 1. Responsible Gaming: Both companies emphasize responsible gaming practices and have established relationships with regulators [31][32] 2. Market Expansion: Plans include launching new B2C operations in various countries, leveraging existing contracts and technology [22][26] Conclusion The merger between Intralot S.A. and Bally's International Interactive is positioned to create a leading global player in the iGaming and lottery sectors, with strong financial projections, a comprehensive technology integration plan, and a focus on market expansion and responsible gaming practices. The combined entity is set to capitalize on significant growth opportunities in both existing and new markets.