Intralot revenue jumps 15% during 1H2017

Between January and June, Intralot reported a 15.1 percent increase in income and a 3.6 percent growth in EBITDA in comparison to 1H2016.

Greece.- Intralot has revealed a finance report for the first half of 2017 and revealed a growth in income of 15.1 percent and 3.6 percent in EBITDA in comparison to the same period of last year. The Greek company recorded a US$871.2 million turnover and its EBITDA reached US$109.5 million.

Intralot explained in a press release that its revenue improvement was mainly due to increased sales in Bulgaria and Poland in the case of Europe (up US$47.4 million), whilst in America (up US$35.4 million) the increase was driven by Jamaican’s top line performance, an improved development in Argentina and the start of a new contract in Chile, that counterbalanced poor US results. In other regions (up US$31.6 million), Azerbaijan and the sale of a software license right to Australia fully offset the sales gap from Turkey.

EBITDA’s 3.6 percent increase developed to US$109.5 million, resulting in a US$3.8 million jump from last year’s first half. LTM EBITDA developed to US$212.69 million posting a 1.8 percent increase vs. FY2106. Adjusting for Eurobet and the Chilean contract, 1H17 EBITDA developed to US$105.99 million, posting a slight increase vs. last year (US$105.75 million). The Group managed to fully absorb the excessive Powerball jackpot effect and equipment sale in Ohio in 1H16, supported also by the software license right sale in Australia in 2Q17.

EBT in 1H17 totaled US$31.6 million compared to US$24.1 in 1H16, positively affected by the significantly decreased finance expenses (lower by US$8.19 million compared to 1H16) as a result of the 2016 bond refinancing. During this period, EBΤ, adjusted for the FX impact, reached US$42.18 million from US$27.68 million in 1H16 (+52.4 percent).

NIATMI from continuing operations in 1H17 concluded at a negative US$16.27 million compared to US$18 million in 1H16 as the positive EBT variance was negatively affected by increased Taxes (primarily Azerbaijan and Australia) as well as higher Minorities profits. NIATMI (total operations) in 1H17 concluded at US$30.68 million compared to US$23 million in 1H16. NIATMI in 1H17, on a constant currency basis, reached a negative US$4.39 million from US$26.6 million in 1H16.

Intralot Group CEO Antonios Kerastaris highlighted that the period results mean that 2017 “represents a turning point for Intralot’s financial performance.” He noted the link between continued double digit revenue growth and profitability improvements to “reforms implemented in the previous year and more specifically to [Intralot’s] M&A and partnership strategy.”

“Strong local partnerships offer portfolio diversification, local market knowledge, and an asset light structure in addition to economies of scale and new strong revenue streams. Significant progress and strong trust from our clients have registered in mature and very competitive markets such as the United States.”

“Recent renewals of flagship contracts in Ohio, Arkansas and Vermont secure our operational profitability and income visibility for the next 10 years, developing the US market into our biggest EBITDA contributor,” he added and said that the company’s “ability to renew in a competitive market such as the US” makes them confident to extent all contracts maturing in the next year.