INTRALOT announces H1 financial results

INTRALOT released the financial for the first six months of 2019.
INTRALOT released the financial for the first six months of 2019.

INTRALOT has reported the financial results for the first six months of the year.

US.- INTRALOT SA, the international gaming solutions and operations leader, has announced its financial results for the six-month period ended June 30, 2019, prepared in accordance with the IFRS.

Reported consolidated revenue posted a decrease compared to 1H18, leading to total revenue for the six-month period of €378.1m, which is a 7.6% decline. Sports Betting was the largest contributor to INTRALOT‘s top line, comprising 44.9% of revenue, followed by Lottery Games contributing 42.6% to Group turnover. Technology contracts accounted for 5.8% and VLTs represented 4.2% of Group turnover while Racing constituted 2.5% of the total revenue of 1H19.

Gross Gaming Revenue (GGR) from continuing operations decreased by 3.5% year-over-year driven by the drop in the non-payout related GGR. following the top-line performance of the company’s Technology & Management contracts. It was also driven by the decrease in payout
related GGR (3.4% decline year-on-year), following the lower top-line performance of licensed operations being significantly offset by the decreased YTD average Payout.

EBITDA, from continuing operations, developed to €58.7 million in 1H19, posting a decrease of 15.9% compared to the 1H18 results. 1H19 Organic performance, boosted by the Illinois contract start in mid-February, Netherland’s improved performance, and a Chilean Jackpot, did not manage to absorb OPAP’s new contract scope, one of Morocco’s projects’ discontinuation and FY18 minimum state guarantee settlement, and Russia’s contract discontinuation. EBITDA was further deteriorated by the adverse FX movement across key markets (mainly Turkey, and Argentina), only partially offset by the favourable USD movement.

INTRALOT Group Chairman & CEO Sokratis P. Kokkalis noted: “The second-quarter results, although still absorbing the business impact of last year’s negative developments, reflect improvement in operating cash flows and liquidity by successfully implementing our three-pillar strategy for operational improvements, new business, and non-core asset disposals. We successfully completed the delivery and transition to the Lotos X new central system for our historic client OPAP in July, and came to an agreement with OPAP for the disposal of our 16.5% participation in Hellenic Lotteries for a consideration of €20 million. The renewal of our contract with the DC Lottery to include Sportsbetting and the award of a new Sportsbetting contract in Morocco demonstrate INTRALOT’s readiness to tap fresh opportunities with cutting-edge new technological solutions.”

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