Intralot net profit increased by 16,5% in fourth quarter 2009

More precisely, consolidated results of financial year 2009 are as follows:

Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) was shaped at 167.9 million euros. Reported EBITDA reached 154.4 million euros. Adjusted EAT-am (Earnings After Taxes and after minorities) was shaped at 73.9 million euros, while reported EAT-am at 49.8 million euros.
 
In the fouth quarter 2009, the group’s Consolidated Revenues were 223 million euros. EBITDA was shaped at 36.9 million euros, while EAT-am were 16.1 million euros posting an increase of 16.5% compared to the fourth quarter 2008. Revenues for the parent company were 151.6 million euros in 2009, EBITDA was shaped at 25.5 million euros and Earnings After Taxes (EAT) reached 1.8 million euros.

Commenting on financial year 2009 results, Intralot’s CEO, Constantinos Antonopoulos, noted: “Intralot exhibited an extremely resilient cash flow in 2009 given that the Group spent 176 million euros in capex in numerous projects around the world, paid out dividends of  62.5 million euros to the firm and minority shareholders, bringing the total cash outflows to 238.5 million euros. On the other hand, the group’s net debt increased by only 65.4 million euros in the year, reaching 253.5 million euros, a very healthy 1.5 times our EBITDA. More specifically, in the last quarter of 2009 the group’s net debt decreased by 10.4 million euro for the first time in the past 3 years, when the company started to undertake an increasing number of significant projects around the globe. This decrease took place although capex in the quarter reached  37.8 million euros and dividends paid 5.2 million euros, a total of 43 million euros cash outflows, thus showing a significant improvement in cash flow.

Despite the top-line slowdown, which is mainly attributed to the global economic crisis, the company managed to contain its SG&A costs by approximately 10 million euros in 2009 compared to the previous year giving a boost to its margins. The net profit margin was shaped at 7.2% in fourth quarter 2009 compared to 5.1% in fourth quarter 2008. The improvement in margins is evident by the fact that revenues dropped by 18.3% in fourth quarter 2009 compared to fourth quarter 2008, while adjusted net profits grew by 16.5% for the corresponding periods.  

Regarding recent developments, the company has proceeded to two important acquisitions: Cyber Arts, a silicon valley-based interactive gaming developer and SVL, the Jamaican gaming operator. Both acquisitions are of strategic importance to the Group, Cyber Arts because it is an important vehicle to penetrate the lucrative interactive gaming space and SVL because it is a dominant player in Jamaica and the Caribbean region.

Moreover, Intralot has signed important contracts in Azerbaijan, in the state of Minas Gerais in Brazil, in Italy with lottery operator Sisal and recently in Morocco.

The firm is also closely monitoring opportunities, such as the outsourcing of the operation of the Illinois Lottery, other opportunities in the US related to online poker opportunities, and the upcoming liberalization of the online gaming market in France, among others.

The Board of Directors will propose to the Annual Shareholders’ Meeting on May 20th,  a dividend of 15 eurocents per share, which is a significant dividend yield of 4.3% based on yesterday’s closing share price.

It is our belief that the group’s strong financial position, especially compared to our peers, our proven track record and successes internationally, and the increasing back-log of projects in the company’s portfolio put us in the driver’s seat with regards to future opportunities in the gaming sector.”