Intralot Increases revenue by 15.1%
Intralot Group’s revenue increased by 17.9% in the first half of 2017, while EBITDA profits increased by 3.6% year over year.
Intralot Group revenues and EBITDA increased by + 17.9% and + 8.1% respectively at a constant exchange rate, compared to the first half of 2016.
* In the first half of 2017, the Group’s revenue increased by 15.1%, compared to the first half of 2016.
* During this six months EBITDA increased by 3.6% on an annual basis.
* The EBITDA margin decreased by 1.4pps (to 12.6%).
* The EBT margin stood at 3.6% (+ 0.4pps as compared to the first half of 2016).
* NIAMMI (Net Profit after Minority Interest) from continuing operations improved by 9.9% compared to the previous year. Overall, NIAMM from continuing operations stood at € -13.7 million from € -15.2 million in the first half of 2016.
* Cash Flow from Operating Activities is in line with last year’s performance at € 77.2 million
* Net Debt stood at € 516.8 million, an increase of € 21.9 million compared to Net Debt as at 31 December 2016 due to the decision to invest in software (AMELCO) and the acquisition of Eurobet.
Consolidated turnover increased by 15.1% compared to the first half of 2016, bringing total revenue for the period ending 30 June 2017 to € 733.2 million.
The main factors that have affected turnover performance by region are:
€ + 39.9 million in Europe, mainly due to the increase in sales in Bulgaria (mainly due to the Eurobet integration after July 2016) and Poland due to legislative changes.
€ + 29.8 million in North and South America, an increase due to sales in Jamaica (improved performance of the casino portfolio and the introduction of horse races after the Caymanas racecourse), Argentina (due to the number of games and the Sports betting) and INTRALOT’s new contract in Chile, which fully offset the deficit resulting from our US operations as a result of the biggest jackpot in the history of Powerball in the first half of 2016 and the sale of terminals at Ohio in the second quarter of 2016.
€ 26.6 million from all other regions, mainly due to Azerbaijan’s better performance and the sale of software license in Australia, which fully offset the decline in sales in Turkey over last year.
On a quarterly basis, turnover improved by 10.1% compared to the second quarter of 2016, bringing total revenue for the period from April 1 to June 30, 2017 to € 365.3 million. The main factors Which influenced the return on turnover is sales growth in Azerbaijan, Jamaica and Poland, which fully offset the deficit generated in US operations due to the sale of terminals in Ohio in the second quarter of 2016. Consolidation Eurobet then In July 2016 offset the reduced revenue from Eurofootball due to the impact of EURO last year.
Excluding the incorporation of Eurobet from the Group’s results, the total annual revenue for the period ending 30 June 2017 amounted to € 703.4 million (annual increase + 10.5%). While for the second quarter of 2017, total revenue, excluding Eurobet, amounted to € 351.3 million (+ 5.9% compared to the second quarter of 2016).
Fixed exchange rate basis: In the first half of 2017, revenue excluding the negative effect of exchange rates of € 17.6 million amounted to € 750.8 million (annual increase + 17.9%). In the second quarter of 2017, revenue excluding the negative effect of exchange rates of € 9.0 million amounted to € 374.3 million (annual increase + 12.8%).
Lottery Games remained at the top of our turnover, accounting for 43.4% of our revenue, with the second being Sports Betting, which contributed 40.1% to the Group’s turnover. Technology contracts represent 10.2% and VLTs represent 2.7% of the Group’s turnover, while Horse Racing accounts for 3.6% of the company’s total revenues for the first half of 2017.
In the period ending 30 June 2017, INTRALOT’s systems managed a worldwide gaming turnover of € 12.4 billion (from continuing operations), recording an annual increase of 2.4%. In Latin America, there was an increase of 43.0%, in Africa 9.9%, Asia 9.8%, Western Europe 3.7%, Eastern Europe 14.9% And in North America a 3.4% drop.
INTRALOT Group CEO, Mr. Antonios Kerastaris, said:
The results of the first half of 2017 show that this year will be a turning point for INTRALOT’s financial performance. The continued double-digit growth rate and improved profitability are directly linked to the reforms we put in place last year, and in particular the alliance development strategy to takeover and merger policy. Strong local alliances offer enrichment and diversification of product portfolio, knowledge of the local market and an asset-light structure in addition to economies of scale and new sources of revenue. In addition, significant progress and confidence has been recorded by our customers in mature and very competitive markets such as the US.
Recent major contract renewals in Ohio, Arkansas, and Vermont ensure our operational profitability over the next 10 years, shaping the US market to the most significant in terms of its contribution to the EBITDA of the Group. The company’s ability to renew its contracts in a competitive market such as that of America, and taking into account the renewal history, ensures the expansion of all contracts maturing in the coming year. Lastly, the recent application for listing on the Italian Stock Exchange of our shares in local Gamenet creates the prospects for exploiting and exploiting this asset. “