What's Happening?
Brightstar Lottery PLC has reported a 7% increase in revenue for the third quarter of 2025, reaching $629 million, driven by a 7.9% growth in same-store sales. The company also achieved an adjusted EBITDA of $294 million, marking an 11% increase from
the previous year. Key milestones for the quarter included the sale of IGT Gaming for $4 billion, which has allowed Brightstar to focus on its core lottery operations. The company has also declared a 10% increase in its quarterly dividend to $0.22 per share. Brightstar's CEO, Vince Sadusky, highlighted the company's strategic refocusing and the introduction of medium-term targets, including a projected revenue of $2.75 billion by 2028.
Why It's Important?
The financial results and strategic initiatives announced by Brightstar Lottery PLC underscore the company's robust performance and its commitment to shareholder returns. The sale of IGT Gaming and the focus on lottery operations position Brightstar as a leading player in the global lottery market. The increase in dividends and share repurchase plans reflect confidence in the company's financial health and future growth prospects. These developments are significant for investors and stakeholders, as they indicate a strong financial foundation and a clear strategic direction aimed at sustainable growth and value creation.
What's Next?
Brightstar Lottery PLC plans to continue its strategic focus on organic growth and shareholder returns. The company has set ambitious targets for 2028, including a revenue goal of $2.75 billion and an adjusted EBITDA of $1.3 billion. The company also plans to return $1.7 billion to shareholders over the next few years. With a strong cash position and reduced net debt, Brightstar is well-positioned to execute its growth strategy, which includes expanding its iLottery operations in the U.S. and Italy. The company will host a conference call to discuss these results and future plans.
Beyond the Headlines
The strategic shift towards a pure-play lottery company and the focus on digital and retail solutions highlight Brightstar's adaptation to changing market dynamics. The company's emphasis on innovation and efficiency, as seen in its OPtiMa savings plan, suggests a commitment to maintaining competitive advantage. The financial targets set for 2028 reflect a long-term vision that could influence industry standards and drive further consolidation in the lottery sector.
