Supplier News
Greece – Intralot falls in first quarter of 2019
By Phil - 31 May 2019
Intralot saw its revenue and EBITDA fall by 1.1 one per cent and three per cent respectively year over year for the three-month period ended March 31, 2019, with group revenues lower by 8.5 per cent in in the first quarter of 2019 comapred to the firsdt quarter of 2018.
During the three-month period ended March 31, 2019, Intralot systems handled €5.6bn of worldwide wagers, posting a 12.3 per cent year-on-year increase.
North America’s wagers increased by 38.1 per cent (driven by Illinois contract launch), Africa’s by 14.5 per cent, Asia’s by 12.2 per cent, and South America’s by 10.9 per cent (driven by Chile – significant Jackpot in Q1 – and Peru over performance, absorbing the Argentinean Peso movement), while East Europe’s dropped by 12.7 per cent (driven by TRY currency devaluation).
Sports Betting was the largest contributor to Intralot’s top line, comprising 47.6 per cent of its revenues, followed by Lottery Games contributing 40.7 per cent to group turnover. Technology contracts accounted for 5.4 per cent and VLTs represented 4.1 per cent of group turnover while Racing constituted the 2.2 per cent of total revenues of 1Q19.
In Greece sales were down by €6.2m primarily due to the transition to the new OPAP contract, which after July ‘18, has a smaller contract value, due to its limited scope. Reported consolidated revenues for the three-month period were lower by €18m year over year due to lower revenues in Bulgaria which was down by €7.4m, driven mainly by Virtual Sports performance as a result of the revised payout strategy; Sports Betting, Numerical and Racing performance on par with last year. The deficit in Turkey was €2m whilst in Argentina it was the equivalent of a €5.7m fall.
Intralot Group Chairman & CEO Sokratis Kokkalis said: “The first quarter results reflect the continuing impact from the partial loss of some contracts last year, though the successful launch of the Illinois Lottery landmark project on February 18, 2019 has started and will continue to offset these effects incrementally throughout the year. Continuing positive news from advances in the sports betting legislative environment in the US, in the District of Columbia and Montana, create immediate prospect for new revenue streams in the promising US sports betting market.
“We are also very optimistic about GAMENET, our asset in Italy, which announced very strong growth in the first quarter of 2019. In addition, Intralot recently signed an important contract with BCLC in Canada to provide the Lottery Gaming Engine along with terminal hardware/software and services, marking our entrance to the Canadian market. Further to our market growth initiatives, we continue to implement our plan for operational improvements and cost savings that will help us leverage the strategic advantages from the launch of our next generation products and services for digital transformation.”
In early May 2019, Intralot announced a group restructuring and in particular concerning the Operations, Technology, Digital, and Commercial Divisions, reorganizing them with executives from the company’s experienced talent pool
