Brightstar Lottery cuts annual outlook after quarterly revenue decline
UK-based lottery company Brightstar Lottery lowered its 2026 revenue and adjusted earnings outlook while maintaining its operating cash forecast. Third-quarter revenue and income from continuing operations declined. Management cited updated same-store sales expectations, the timing of Italian expansion efforts and currency effects in the revised forecast. The company also reduced its capital expenditure estimate and declared a quarterly cash dividend.
Economics & Markets··Morning
Annual revenue and adjusted earnings forecasts fall
UK-based lottery company Brightstar Lottery lowered its revenue outlook for 2026 when it released third-quarter results on November 10. The new range is 2.435 billion dollars to 2.455 billion dollars, replacing a forecast of 2.50 billion dollars to 2.55 billion dollars. Management revised its expectations for the full year as the business entered the final quarter following lower reported sales in the three months through September.[1], [2]
Brightstar attributed the revision to updated expectations for second-half same-store sales, the timing of certain consumer-facing expansion efforts in Italy and foreign exchange effects. It also cut its adjusted earnings forecast before interest, taxes, depreciation and amortization to between 1.14 billion dollars and 1.16 billion dollars. The prior range was 1.16 billion dollars to 1.19 billion dollars. This adjusted measure is calculated outside generally accepted accounting principles.[1]
Quarterly revenue declines to 607 million dollars
For the quarter ended September 30, revenue was 607 million dollars, down 4 per cent from 629 million dollars a year earlier. Income from continuing operations declined from 95 million dollars to 45 million dollars. Adjusted earnings before interest, taxes, depreciation and amortization slipped from 294 million dollars to 289 million dollars. Over the first nine months, revenue fell to 1.78 billion dollars from 1.84 billion dollars.[1]
The company said higher noncash amortization of service revenue associated with the new Italy Lotto license affected reported revenue. Product sales and other service revenue contributed growth, alongside cost efficiencies. Performance in large-jackpot games played across multiple US states weighed on results, as did the transition of the UK service contract. Brightstar described these operating factors within its quarterly results and its updated expectations for the remainder of the year.[1]
Cash forecast is maintained as investment estimate eases
Brightstar maintained its forecast for cash generated by operating activities. Capital expenditure is now expected to be approximately 450 million dollars, compared with the previous range of approximately 450 million dollars to 475 million dollars. The board declared a quarterly cash dividend of 0.23 dollars per common share. Shareholders on the register on November 24 are eligible, with payment scheduled for December 8. These dates accompany the dividend declared with the quarterly results.[1]
