Company: BRSL
Filing Date: 2025-02-25
Form Type: 20-F
Source: 0001619762-25-000007
Chunk: 23

Company: Brightstar Lottery PLC
Filing Date: 2025-02-25
Form: 20-F
Item: Item 5
Chunk 23
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, also referred to as IGT Gaming, was classified as discontinued operations as of July 26, 2024 and accordingly, we report our results of continuing operations (i. e. what was formerly the Global Lottery segment) as a pure-play lottery business, representing the services and products we expect to continue to provide after the closing of the Proposed Transaction. Unless otherwise noted, the information and amounts provided in this “ Management’s Discussion and Analysis” relate to our continuing operations.

Divestitures

On September 14, 2022, the Company completed the sale of 100% of the share capital of Lis Holding S. p. A., a wholly owned subsidiary of IGT Lottery S. p. A. that conducted the Company’s Italian commercial services business, to PostePay S. p. A. - Patrimonio Destinato IMEL for a purchase price of €700 million. The net consideration received of €479 million resulted in a pre-tax gain on sale of $278 million, ($276 million net of tax). The business was a component of continuing operations through the closing date.

OPtiMa

During the third quarter of 2024, we initiated a restructuring plan (“ OPtiMa 3.0”) to realign and optimize our cost structure due to ending the transition services agreement (“ TSA”) period after the two Italian dispositions (Italian gaming B2C businesses & Italian commercial services business) and the Proposed Transaction for the sale of IGT Gaming.

Table of Contents

The plan is focused on realigning and optimizing our general and administrative activities to achieve annualized savings by the end of 2026 of $40 million of which about 50% will be realized by the end of 2025. Actions under the plan include the reduction of approximately 3% of our workforce, the optimization of our real estate footprint given our hybrid workforce and headcount reductions, and the reduction of other indirect costs previously incurred due to a larger business portfolio. Employee actions commenced in the third quarter of 2024 and are expected to be completed within the next 12 months. During the year ended December 31, 2024, we incurred $38 million in severance and related employee costs under the plan.

Key Factors Affecting Operations and Financial Condition

The Company’s worldwide operations can be affected by industrial, economic, and political factors on both a regional and global level. The ongoing conflict between Russia and Ukraine, the Israeli-Hamas conflict, the tightening of monetary policy by central banks and other macro