Intralot predicts stable growth

Consolidated Revenues for the period decreased by 10.9% compared to the first quarter 2009, reaching 228 million euros. For comparison reasons it is worth noting that excluding the financial results of the new Turkish contract for both first quarter 2009 and first quarter2010, on a like-for-like basis consolidated Group revenues posted a minor decrease of 5.9%.

Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) decreased by 26.3% to 34 million euros compared to 46.1 million euros in the first quarter 09, while excluding the financial results of the new Turkish contract EBITDA increased by 4.1%, indicating the strength of the underlying business. In addition, by adjusting the financial results for the new gaming tax imposed in Bulgaria on a like-for-like basis, EBITDA posted an increase of 9.8% in first quarter 2010 as compared to the same period of the previous year.

Earnings Before Taxes (EBT), were 27.7 million euros, 37.4% lower than in the first quarter last year, while Earnings After Taxes and after minorities (EAT-am) decreased by 31.5% to 15.1million euros from 22.1 million euros in the first quarter 2009. Compared to the fourth quarter last year, EBITDA and net profits have stabilized in the first quarter of 2010, despite the adverse betting results of the first quarter of the current year.

The Group posted a robust positive operating cash flow of 26.8 million euros in the first quarter 2010 compared to a negative 9.1 million euros in the first quarter of the previous year. The group’s net debt remained practically stable compared to the 12-month period of 2009 despite capex spending of 25.1 million euros in the first quarter of 2010.

Revenues for the parent company were 26.1 million euros in the first quarter 2010, 4.4% lower than the same period last year. EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) for the period increased by 37.6% reaching 7 million euros, and Earnings After Taxes (EAT) were 2.8 million euros.

Commenting on the results of the first quarter 2010, Intralot Group CEO, Constantinos Antonopoulos, stated: “Intralot’s first quarter for the fiscal year 2010 was quite strong posting revenues of 228 million euros and EBITDA of 34 million euros, despite adverse betting results in some countries that pushed payouts higher in the quarter and the increase of the gaming tax in Bulgaria that took place since the beginning of this year. Moreover, we must note that the financials of SVL, the Jamaican gaming company acquired in early 2010, have not been included in our first quarter 2010 results, something that will take place in the 2nd quarter due to typical procedural issues. 

He continued saying: “It has entered into a new stable course of growth following the new Turkish betting contract. Also, the continued growth of developing markets adds to our optimism since the firm has invested early in these markets worldwide.”

“Up to now, the economic crisis in developed markets and the increases in gaming taxation in some jurisdictions without serious analysis of the effects of such actions both had a negative effect on the company’s performance. However, as Governments have started to understand that in order to increase their proceeds from gaming they have to create new gaming opportunities rather than increase taxes, the crisis is expected to have a positive impact on the company in the near future.”

“The Intralot Group is carefully monitoring a number of very interesting developments that are taking place or are expected to take place in gaming markets around the world and is moving ahead with substantially less risk in capturing new opportunities and expanding its leading position in the gaming sector”, he concluded.