Intralot bracing for €30m Covid-19 hit

Lottery and gaming operator says extent of damage to its business will depend on the duration of the crisis.

Lottery and gaming solutions company, Intralot, has published a report forecasting that the Covid-19 crisis could cost up to €30million, but that business will return to normal levels of activity by November this year.

The company believes the impact of Coronavirus on the business has yet to reach its peak, something it expects to happen at the end of April running into May.

Having analysed data for March and early April, as well as lockdown forecasts for territories in which it operates, Intralot said that the pandemic will impact its earnings before interest, tax, depreciation and amortisation (EBITDA) by between €25million and €30million.

National lockdown measures, store closures and the lack of sports events and betting content, have affected operations, in particular in markets such as Malta, Australia and Morocco, with a partial impact in the US, the Netherlands and Chile.

“The Covid-19 pandemic has affected economic and business activity around the world,” Intralot explained.

“The extent of its impact will depend on its duration, government policy in key jurisdictions regarding restrictions implemented and the current and subsequent economic disruption that the pandemic will cause.

“In the US operation, March and early April data show a high degree of resilience given that in many states a significant portion of the retail network remains open. However, the lack of sports betting content has led to delays in the anticipated contribution to the US operation EBITDA from the nascent sports betting revenue stream”, it added.