Intralot posts €27m Q1 profits as group reorganisation reverses balance sheet results
Intralot SPA continues its recovery momentum into 2022 trading as its core business units and global divisions maintain growth benefitting from the group’s capital restructuring programme.
Publishing its Q1 trading update (period ending 31 March), the Athens-listed gambling technology group registered corporate revenues of €415m – up 20% on corresponding 2021 results of €345m.
The €70m increase in consolidated revenues was attributed to topline growth achieved by Intralots’ core units of B2C Licensed Operations (+€33m), Technology Services (+€22m) and Managed B2B Contracts (+€14m).
A breakdown of unit performance saw Intralot’s B2C Licensed Operations in Malta maintain its double-digit growth profile, reporting increased sales of €18m (+23%).
Likewise, B2C Licensed Operations overcame continued local currency FX impacts in Argentina to record increased sales of €15m ‘+68% on a constant currency basis’.
The firm’s Technology Services unit continues to benefit from North American contract expansions, as the Intralot INC (US gaming division) registered period sales of €17m (+19%) – as results ‘offset negative side effect of adverse US $ movements against the Euro.’
The continued recovery of Intralot Managed B2B Contracts saw the unit benefit from a €6.6 million cash surplus, returned from its Turkish Bilyoner sportsbook contract.
Intralot noted that despite registering market growth, its Bilyoner JV had suffered due to the Turkish Lira’s ‘30% depreciation against the Euro’.
Irrespective of Turkish headwinds, Intralot had diversified the commercial revenues of its Managed B2B Contracts, which accounted for €3.3m income generated from Montana and Washington DC partnerships.
Unit growth saw Intralot register a 66% increase in Q1 EBITDA to €110m (Q12021: €66m) – results that accounted for a 10% increase in Q1 corporate expenses to €101m.
Underscoring its positive start to year trading, period trading saw Intralot ‘reverse its balance sheet performance’, registering a net income from operations of €27m – versus €103m losses reported in 2021.
Intralot Chairman & CEO, Sokratis P. Kokkalis, commented on Q1 performance: “The successful completion of the Capital Structure optimization in August 2021, resulting in the extension of the 2021 maturities and the significant deleverage by €163m has been a key milestone for INTRALOT, providing us with the runway to address significant opportunities in the US and worldwide in the coming years in the Lottery, Sports Betting and Monitoring areas.
“Coupled with a strong rebound in key markets after the easing of COVID-19 pandemic measures and cost-efficiencies achieved at HQ level, FY2021 results set the Company in a stable course to tap on new opportunities and create value for all its stakeholders.”