The Gaming Boardroom

Where the gambling industry comes to think

Brightstar pledges cost reductions as revenue rise fails to halt Q2 net loss

Steve Tyler Free Content

Brightstar pledges cost reductions as revenue rise fails to halt Q2 net loss

Summary

Brightstar Lottery reported a $58m net loss in Q2 even though revenue rose 3% year‑on‑year to $631m. This is the first quarter reported as a standalone lottery business after the split from IGT Gaming & Digital, following Apollo’s acquisition of the Gaming & Digital arm.

Product sales were the main growth driver, up 59% to $42m, while service revenues were flat at $588m. Regionally, US & Canada led with $293m (down 4%), Italy grew 10% to $259m and rest of world rose 9% to $79m. Brightstar also secured the Italian lottery tender running through November 2034.

Costs are the problem: operating expenses climbed 13% to $492m and non‑operating costs spiked (partly from FX losses and one‑off items). Brightstar has expanded its OPtiMa 3.0 cost‑reduction programme to $50m to “right‑size” the business post‑sale. Q2 pre‑tax loss was $10m; net loss attributable to Brightstar was $58m. Adjusted EBITDA fell 5% to $274m. For H1, revenue was $1.21bn (down 4.7%) and adjusted EBITDA was $524m (down 15%).

Source

Source: https://igamingbusiness.com/finance/quarterly-results/brightstar-revenue-rise-q2-net-loss/

Key Points

  • • Q2 revenue up 3% to $631m; product sales up 59%.
  • • Operating expenses rose 13% to $492m; non‑operating costs increased notably due to FX and one‑offs.
  • • OPtiMa 3.0 cost‑reduction programme expanded to $50m to “right‑size” following the IGT Gaming & Digital sale.
  • • Q2 pre‑tax loss $10m; net loss attributable to Brightstar $58m (impacted by discontinued operations adjustments).
  • • Adjusted EBITDA down 5% in Q2 to $274m; H1 revenue down 4.7% and adjusted EBITDA down 15% to $524m.
  • • Brightstar won the Italian lottery tender, securing a contract through November 2034.

Why should I read this?

Quick and blunt: revenue nudged up, but costs blew the quarter out. If you track lottery suppliers, corporate carve‑outs or who wins big public tenders (hello Italy), this tells you where Brightstar’s margin pain is and what management says it will do about it.

Context and relevance

The results matter because Brightstar is now a focused, standalone lottery operator after the IGT Gaming & Digital deal. The expanded cost‑cutting plan and the Italian tender win are both signals to investors and customers about how the company plans to stabilise earnings and defend market share. The heavy FX and one‑off charges also highlight ongoing risks for globally operating lottery suppliers in a post‑merger environment.