Intralot SPA continued its recovery from COVID in Q1 of 2022, displaying signs of improved business performance as market conditions strengthened compared to pandemic-ridden comparatives.
Publishing its Q1 trading update (period ending 31 March), the Athens-listed gambling technology group registered revenues of €97.7m, up 0.1% year-on-year.
Revenues increased by 30.6% in Australia, owing to the strict COVID-19 restrictions in place last year, while Croatian revenues increased by €0.9m, owing to the launch of a new lottery system with Hrvatska Lutrija.
However, US revenues witnessed a decline of 5.1% YoY, largely due to the nonrecurrence of the jackpot that boosted sales one year ago by around €4.0m. Other revenue deficits included from services ended lower by 3.4% YoY, while revenue from merchandise sales generated a deficit of 55.4% YoY due to their less frequent nature.
Lottery proved to be a dominant force in Intralot’s topline, providing 61.9% of revenues. This was followed by sports betting, which contributed 18.8% to group turnover in Q1. Technology contracts accounted for 7.7% and VLTs monitoring represented 11.2% of group turnover, while racing constituted 0.5% of total revenue.
The firm’s North American sports betting venture was enhanced by earning new contracts in Montana and Washington DC, with the division’s revenue increasing slightly by €0.1m.
In terms of expenses, the firm noted a downturn in operational costs, decreasing by €0.3m to €21.8m compared to €22.1m one year ago.
This bolstered Intralot’s profitability, with its EBITDA and EBITDA margin improving on last year’s comparatives. EBITDA stood at €26.1m, up 4.9% YoY, whilst EBITDA margin was 26.7% compared to 25.5% in Q1 of 2021.
Intralot Chairman & CEO Sokratis P. Kokkalis noted: “First quarter results show a consolidation of gains and recovery from the COVID impact and reflect an improved financial profile, with normalized revenues and a reduction in operational expenses and debt servicing costs consistent with the Company’s business plan.
“On the background of this strongly improved P/L and Balance Sheet, the Company has designed and is about to launch a Share Capital Increase by means of Rights Issue and has secured the commitment of Standard General Master Fund II L.P. as cornerstone investor for the unsubscribed rights in a move that will significantly strengthen our prospects to grasp the tremendous opportunities in the US and the global markets.”
Intralot ended Q1 with a stronger balance sheet, with cash at bank standing at €98m, compared to 90.6% this time last year.