Intralot has published its financial results for the six-month period ended June 30, 2020, showing a marked decline in fortunes for the international lottery and gaming solutions provider.
Reported consolidated revenue for H1 2020 was €168.2m (-55.5% H1 2019). Lottery games provided the biggest contribution to the firm’s top line, comprising 65.3% of revenue, followed by technology contracts which contributed 14.3% to group turnover. Sports betting accounted for 11.5% and VLTs represented 8.3% of group turnover, while racing constituted 0.6% of total revenue in the first half of 2020.
Gross gaming revenue (GGR) from continuing operations saw a decrease of 38.8% (or €-84.8m) year-on-year, driven by a drop in the firm’s payout-related GGR (-67.1% year-on-year or €-45.8m). Intralot also blamed recent developments in Bulgaria (- 74.9% year-on-year on wagers from licensed operations ) for GGR decline.
H1 EBITDA from continuing operations came in at €26.7m, a decrease of 54.5% (€-32m) year-on-year.
During the six-month period the firm handled €9.8bn of worldwide wagers, posting a 1.7% year-on-year increase. East Europe’s wagers increased by 61.6% reflecting, said the firm, the “new sports betting era dynamics in Turkey since September 2019”. North American wagers grew by 18.9%, driven mainly by Illinois’ full-half contribution.
There were negatives, however, with Morocco sending Africa wagers down by 47% in the period, while South America saw a decrease of 46.9%. West Europe fell by 28.9%, and Asia by 0.4%, due mainly to the COVID-19 pandemic.
More positively, Intralot’s US operations recorded increased revenue (€+7.6m), mainly driven by the higher contribution of its new contract in Illinois in the current period (project launched in mid-February 2019) and a one-off revenue recognition in relation to its new project with British Columbia Lottery Corporation in Canada.
A one-off equipment sale in Ohio fully absorbed the impact of the firm’s Ohio CSP contract termination as well as the effects of COVID-19 and a Powerball jackpot occurrence in Q1 2019. The firm also noted that performance was in part boosted by a favourable USD movement.
Group CEO Christos K Dimitriadis, updating investors, said: “During the first half of 2020 we have navigated through the COVID-19 pandemic as well as the effect of discontinued operations in Bulgaria and Turkey.
“We have revisited our strategy, accelerated its execution, reorganized the group, gave priority to our customers and to our people, addressed our financials with prudence, diversified our portfolio even further, ensured continuity in service provision and identified ways to unlock the hidden potential of our digital technology.
“As a result, we have achieved significant growth in our US operation, substantial reduction of the group’s OPEX and CAPEX and maintenance of strong liquidity levels. Most importantly we are continuously being prepared for the future and the new realities that are being established worldwide.”