Zona de Azar Greece – Argentina Boosts Intralot and Levels Its Revenue Drop in Europe

Greece.- December 6th 2022 www.zonadeazar.com Athens-listed gaming supplier and operator Intralot has reported a marginal decline in group revenue to €301.7 million in the first nine months of 2022. The company’s growth in the Americas, particularly in Argentina, offset the decline in Europe.

Revenues fell by 0.3% compared to the same period last year, as revenues from licensed operations (B2C) declined by 13% to €82.2m. This was due to lower revenues in Malta following the expiry of the company’s licence at the beginning of July, which was partially offset by higher revenues in Argentina, up 49% year-on-year.

Technology and support services (B2B/B2G) revenues increased by 6% to €184.2 million, driven by growth in Australia, Croatia and other jurisdictions, mainly due to services-related sales. This offset a 1% decline in US operations, mainly due to lower product sales.

Gaming management (B2B/B2G) revenues increased 2% year-on-year to €35.3 million, driven by growth in Morocco and sports betting contracts in Montana and Washington DC, together with a stable performance from its Turkish operations.

On a constant currency basis, revenues for the nine-month period would have increased 6% compared to a year ago.

Lottery gaming continued to be the largest contributor to Intralot’s revenues, with a 65% share, followed by sports betting at 14%, VLT tracking at 12%, technology contracts at 9% and racing at just 0.3%.

The Americas remained the company’s largest geographic market during the period, with revenues up 10% to €177.5m, helping to offset a 22% decline in revenues in Europe to €90.7m. In other regions, revenues increased by 12% to €50.2 million, with a further €16.6 million in disposals.

“Intralot’s significantly improved financial results over the 9-month period reflect the benefits of extensive business reorganisation and capital structure efforts during 2021 and 2022, along with healthy cash flow generation and profit margins that create stability and provide us with the runway to deploy our plans on opportunities, particularly in the online arena, in the US and globally,” said Intralot president and CEO Sokratis Kokkalis.

Total gross gaming revenues increased 5% to €256.6m during the period, while operating expenses rose 4% to €70.2m and other operating income increased 13% to €17.9m.

Intralot’s EBITDA from continuing operations was thus €88.0m, up 7% year-on-year.

After interest expenses of €27.4 million, the company recorded a negative net income after tax and minority interests (NIATMI) from continuing operations of €6.0 million, compared to a positive result of €44.5 million a year ago, which was boosted by a gain of €40.8 million related to the disposal of its stake in Taiwan.

At 30 September, the company had cash and cash equivalents of €98.8 million, compared to €107.3 million a year ago, with net debt of €509.6 million.

Intralot SA (ASE:INLOT) shares were trading at €0.494 per share in Athens early Monday.