Intralot prioritises debt reduction following bright Q1

Intralot SPA cites confidence in achieving its headline 2023 objectives of improving profitability and reducing long-term debt. 

The Athens-listed gambling technology group maintains its full-year expectations as Q1 revenues stand at €83.4m, a 4.5% increase from the same period in the previous year, despite encountering an 8.4% decrease in turnover to €89.5m.

The decrease in turnover was attributed to the discontinuation of the firm’s Malta B2C licence, which accounted for an estimated €21m revenue hit. 

The group’s Malta drags were overcome by the improved commercial results of Technology and Support Services (B2B) in the US (+11%), alongside a 54% increase in it’s Managed Services unit – which accounted for a €5.8 gain in its Turkish Bilyoner Contract.

The technology group’s Q1 EBITDA results experienced a significant year-on-year growth of 29.2%, reaching €33.7m (Q12022: €26m) – which Intralot deemed as a “substantial milestone in Intralot’s post-pandemic rebound”.

Period trading saw Intralot maintain its operating costs at circa €22m, helping the group achieve a net income after tax (NIATMI) of €3.1m, reversing 2021 comparative losses of €5.7m.

The firm’s improved bottom line results saw Intralot reduce its corporate net debt to €471.6m as of 31 March. This marked a reduction from the €500.6m and helped the firm maintain a debt to EBITDA ratio at circa x3.6.

Chairman & Group CEO Sokratis P. Kokkalis noted: “We are extremely proud of first quarter robust organic Ebitda growth of 29% and a return to Net Earnings, along with healthy cash flows and significant reduction of Group Net Leverage Ratio down to 3.6x, providing additional momentum to Intralot’s successful turnaround story as a result of our consistent efforts in the past few years.

“With healthy financials and new technical capabilities offered through next generation solutions for Lottery digital transformation, in both the retail and online worlds, we look forward to timely addressing upcoming maturities, further improving our capital structure, and implementing an ambitious plan for strong and sustainable growth in the US and key markets around the world, creating value for all stakeholders.”