Intralot records 24.4% revenue growth in year-to-date thanks to US, Argentina, Turkey & Morocco expansion

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Intralot saw nine-month revenue (turnover) for 2021 rise 24.4% to €302.8m, compared to €243.4m in the same period of 2020.

GGR also increased by 21.2%, with the business bringing in €244.4m compared to €201.7m in the prior corresponding period.

Of the total revenue, 68.7% came from Intralot’s B2B division. The remaining 31.3% was made up by B2C operations.

By vertical, lottery games were the biggest contributor of revenue, bringing in 60.7% of the total. Sports betting brought in a further 17.5%, while IT products and services accounted for 12.2%.

Video lottery terminals and racing products brought in 9.1% and 0.5% of group revenue, respectively.

Intralot said the growth in overall group revenue can be attributed in part to a €25.9m upturn in the B2C segment, driven principally by operations in Malta and Argentina, where the adverse effects of the Covid-19 pandemic saw revenues reduced in 2020.

The firm’s B2B technology and support services also saw significant growth, bringing in €19.8m more than the previous period, driven principally by strong momentum in the US and Australia, which helped offset a reduction in sales from other jurisdictions.

Other markets which had a positive impact upon the figures included Turkey and Morocco. Overall by geography, the Americas overtook Europe as Intralot’s biggest earner, bringing in a total of €160.7m during the period, up 32.4% year-on-year.

Europe saw its revenues reduced compared to last year, bringing in €115.9m, down 7.4%, while so-called Other jurisdictions brought in €44.8m, up from €32.1m.

Total operating expenses for the period were consistent with last year, coming in at €68.0m. Intralot said this was a result of rising expenses in Turkey and Croatia, offset by continued cost saving initiatives across its HQ.

EBITDA from continuing operations for the period came to €82.6m, up 82.5% from €37.3m last year. EBITDA margin on sales improved to 27.3%, up from 18.6% in 2020.

Earnings before taxes totalled €56.8m, compared to a €52.8m loss before taxes in the same period last year. 

Earnings after taxes totalled €28.0m for the period, a significant improvement on the €25.5m loss after taxes registered in the first nine months of 2020.

Intralot ended the period with €575.3m in total assets, including €90.3m in cash and cash equivalents, and €501.2m in net debt. Net debt was reduced by €149.9m compared to the figure as of 31 December 2020, when it stood at €651.1m.

Following the end of the period, Intralot launched its new generation lottery platform, LotosX, which is being used to power Lotto Hamburg’s offerings in Germany following the signing of a 10-year contract to provide a new integrated lottery system platform for the operator.

The business has also signed an extension of its cooperation agreement with Greek lottery giant OPAP, for one additional year, lasting until 31 July, 2024.

Intralot chairman and CEO Sokratis P. Kokkalis said: “The nine-month results reflect the continuing strong operational performance combined with the positive impact of the capital structure optimisation agreement achieved in the beginning of August. 

“The robust improvement in the cash flow generation and high EBITDA margins enhanced by reduced future debt servicing costs, highlight Intralot’s strengthened overall financial profile and prospects to pursue new opportunities for growth through strategic partnerships.”

About the author

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Conor Mulheir

Conor entered the gaming industry in 2018 producing high-level live event content for audiences in London, Amsterdam and São Paulo. From 2020, he went on to report news and commission exclusive content for various gaming media brands before joining iGaming NEXT as editor in January 2022.

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