The company commented on the one-notch downgrade and said that the new ranking doesn’t change the course of its business plan.
Greece.- INTRALOT released a statement regarding the new CFR/PD ranking and said that it is not qualitatively different nor does it reflect any change of course in its business plan. The company said that the one-notch downgrade was widely anticipated on technical grounds given ranking methodologies that are based on certain metrics evolving according to INTRALOT’s business plan.
The company said that all figures related to increased capex and reasons for the delay in deleverage have been communicated timely and transparently during investor presentations and publicly released data. Moody’s clearly acknowledges the key role of the Italian asset in the deleveraging process, hence INTRALOT maintains the capacity to move forward at an optimal timing. “RCF line are available for growth stimulating capex if necessary with sufficient test headroom. As articulated in our last investors call, the excessive capex of 2018 is directed to projects that will generate significant returns, as soon as 2019, from already contracted revenues,” said the company.
Moreover, the company explained that negative FX/EM climate naturally weighs in but they tend to be optimistic as the nominal devaluation rates are offset by organic growth and inflation adjustments. “We are particularly positive about Turkey, given our track record – 31% revenue growth in constant currency in 1H2018 – as well as recent regulatory changes: the new law to increase the betting payout from 50% to 70% is going to stimulate explosive growth in land-based and online operations. The majority of our reported €195 reserves are in hard currencies, so they are not significantly exposed to FX risks,” reads the statement. “We are extremely positive about the future of our US operations given the latest regulatory changes on sports betting.”