Intralot reduces debts after capital structure optimisation process as 2021 revenue climbs 20%

Athens-headquartered gambling supplier Intralot increased revenue by 20.0% year-on-year to €414.0m in 2021.

Lottery games were the firm’s largest revenue contributor, generating 61.2% of the total. A further 17.2% came from sports betting, while IT products and services, video lottery terminals and racing generated 12.0%, 9.1% and 0.5%, respectively.

Combined, these figures meant 67.9% of Intralot revenue came from B2B, with the remaining 32.1% coming from B2C.

Intralot said the year-on-year revenue growth was driven by a €33.2m (33.3%) increase in its licensed B2C operations, in addition to a €22.0m (14.0%) increase in technology and support services revenue and €13.9m (41.3%) growth in the management contracts business segment.

Malta and Argentina proved to be significant growth markets in 2021, showing growth of 23.1% and 68.9%, respectively. US revenue climbed by a further 18.5%.

Group EBITDA for the year came to €110.4m, an increase of 66.9% on 2020, at a margin of 26.7%.

Net income after tax and minority interest (NIATMI) from continuing operations totalled €26.6m, compared to a net loss after tax and minority interest of €102.9m in 2020. 

This figure was impacted by a balance sheet optimisation transaction, which generated a one-off gain of €88.5m during the third quarter of 2021, Intralot said.

Intralot chairman Sokratis Kokkalis: “The completion of the capital structure optimisation, resulting in the extension of the 2021 maturities and the significant deleverage by €163m, has been a key milestone.”

The firm ended the year with €107.3m in cash, €605.5m in total assets and €604.5m in gross debt. Net debt totalled €497.2m, down from €651.1m at the end of 2020.

Specific Q4 growth was more modest, coming in at 9.5% as the business generated €111.2m during the quarter. This led to EBITDA of €27.8m at a margin of 25.0%. The business declared a Q4 NIATMI loss from continuing operations of €18.0m.

Following the end of the reporting period, Intralot has gone on to extend a number of its existing lottery supply deals around the world.

In March, the firm announced an extension of its current contract with Moroccan lottery operator La Marocaine Des Jeux et des Sports for an additional year, until December 2023.

In April, the supplier also extended its contracts with both the Magnum Corporation in Malaysia in an agreement lasting until June 2024, and the Wyoming Lottery Corporation in the US, with that supply contract now lasting until August 2029.

Intralot chairman Sokratis Kokkalis said: “The successful completion of the capital structure optimisation 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 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 strong rebound in key markets after the easing of Covid-19 pandemic measures and cost-efficiencies achieved at HQ level, our 2021 results set the company in a stable course to tap on new opportunities and create value for all its stakeholders,” he added.