Intralot enjoys steady profit growth in Q1 as lottery dominates topline

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.
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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.