Intralot maintains EBITDA growth despite B2C setbacks

Intralot SPA maintains a stable outlook for year-trading, despite the Athens-listed technology group reporting continued revenue declines impacting its commercial performance.

Publishing its latest year-to-date (YTD) report, Intralot corporate revenues stand at €280m, down 7% on 2022 comparatives of €301m.

The decline in YTD headline revenues reflects the absence of discontinued Malta lottery (B2C) revenues, accounting for a decrease of €44m. Negative effects were due to the expiration of the company’s license for the Malta Lottery contract in early July 2022.

Elsewhere, Intralot’s revenue performance continues to be impacted by severe currency fluctuations in Argentina, where the company encountered a €5.5m decline in revenue results against 2022 FX rates.

B2C declines were partially offset by Intralot recording continued growth of its Tech Management unit, which tracked a €16m revenue increase (+77%) in Turkey, servicing the Bilyoner state-affiliated bookmaker contract.

Despite revenue declines, Intralot’s outlook is strengthened as Earnings Before Taxes (EBT) rose to €32.1m in 9M23, a notable increase from €19.4m in 9M22.

Improved operational earnings see the firm’s Net Income After Tax and Minority Interest (NIATMI) improve significantly, reaching €9m in 9M23, compared to a loss of €500,000 in the previous year.

Period trading was closed by Intralot completing a successful bond raise of €135m, resulting in new Group Equity of €49m and a Net Leverage Ratio of 2.4x. Gross Debt stands at €454m after repayment of €126m.

Intralot Chairman and CEO, Sokratis Kokkalis, said: “Our YTD results demonstrate Intralot’s new strengths in returning to net profits, strong EBITDA growth and cash flow generation, hence fulfilling all the goals we have set out.

“We have recently completed an important Share Capital Increase via rights issues of €135m that attracted wide support, demonstrating that Intralot represents a very attractive investment case. I would like to thank all the investors who participated and trusted our vision and capability to deliver even stronger results in the future.'”