Lottery company Brightstar delivers robust Q2 earnings, attains strategic targets
Brightstar Lottery Achieves Strong Q2 2025 Results, Announces Growth Initiatives and Shareholder Returns
In a positive turn of events, Brightstar Lottery, a leading player in the global lottery industry, has reported impressive financial highlights for the second quarter of 2025. The company's strategic moves, including the divestment of its Gaming & Digital business, have contributed to its growth and plans to return capital to its shareholders.
The market in the United States recorded a 0.6% increase in its instant ticket and draw same-store sales, coinciding with the divestment of the strategic asset. This growth was partially offset by elevated U.S. multi-state jackpot activity and associated LMA incentives in the prior year.
Brightstar's Q2 2025 financials show a 3% year-over-year revenue growth to $631 million, supported by a 2.6% global same-store sales growth in instant ticket and draw games and a double-digit increase in product sales revenue. Despite incurring $21 million in restructuring costs related to the OPtiMa 3.0 cost reduction program and multi-state jackpot and license management agreement dynamics, the company reported an adjusted EBITDA of $274 million, demonstrating resilient profitability.
However, the company reported a loss from continuing operations of $60 million, which includes a $99 million non-cash foreign currency translation impact and the restructuring charges. Brightstar completed the sale of its Gaming & Digital business for approximately $4 billion in net cash proceeds on July 1, 2025, significantly improving its liquidity, with cash and cash equivalents reported at $2.9 billion.
The company secured several key contract wins and extensions, including a nine-year Italy Lotto license through November 2034, an eight-year contract in Missouri featuring a fully integrated OMNIA retail and digital solution, and multiple multi-year instant ticket printing contract renewals.
Brightstar's growth strategies focus on investing in key initiatives to drive sustainable, long-term growth while implementing structural cost reductions to right-size the business, reflecting a balanced capital allocation approach. The company announced a $250 million accelerated share repurchase program, reflecting confidence in its financial outlook and commitment to returning capital to shareholders.
Max Chiara, Brightstar Lottery's CFO, expressed excitement about the latest results and highlighted sustained global demand for instant ticket and draw games. He mentioned that the company is investing in key initiatives to drive sustainable, long-term growth and deliver structural cost reductions to right-size the business.
Instant ticket and draw same-store sales in Italy increased by 3.7% year-over-year, while product sales, specifically for instant ticket printing and terminals, experienced a 59% increase.
Vince Sadusky, Brightstar Lottery's CEO, spoke about several important milestones achieved by the company recently. He announced that the company secured a license with Italy Lotto and finalized the sale of Brightstar's Gaming & Digital business in a $4 billion deal. Lastly, Sadusky predicted further growth and expansion for the company, which is expected to create value for its stakeholders and deliver unique experiences to lottery players across the globe.
With these achievements, Brightstar Lottery is poised for continued success, leveraging strong sales growth, key contract renewals, and a large capital infusion from the Gaming & Digital business sale to both invest in growth initiatives and return value to shareholders while maintaining profitability through cost controls.
- Brightstar Lottery's strategic move, the divestment of its Gaming & Digital business, has not only contributed to its growth but also allowed the company to invest in growth initiatives and return capital to its shareholders, as announced by Max Chiara, the company's CFO.
- In the pursuit of long-term growth, Brightstar Lottery is planning to allocate a significant portion of the $4 billion net cash proceeds from the sale of its Gaming & Digital business towards financial investments, as predicted by Vince Sadusky, the company's CEO.
