Intralot increased its sales and profits in the second quarter

EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) in the second quarter 2010 reached 36.8 million euros, posting an increase of 8.1% compared to the first quarter 2010, while in the first half of this year were 70.8 million euros, compared to 91.1 million euros in the same period in 2009.

Earnings After Taxes and after minorities (EAT-am) were 15.4 million in the second quarter 2010 (adjusted for the 5.3 million euros windfall tax in the second quarter 2010), slightly higher than in the first quarter of the current year (15.1 million), while in the first half were 30.6 million from 42 million euros in the first half 2009. Profitability in the first half of 2010, in comparison with the same period of 2009, was impacted by the previous Turkish betting contract operated for 2 months in 2009, the 50% increase in the gaming tax in Bulgaria that is effective as of the beginning of 2010 and the windfall tax.

Operating cash flow reached 45.8 million euros in the first semester of 2010, posting an increase of more than 77%. Revenues for the parent company in first half were 75 million euros, 45.8% higher than the first semester of 2009. EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) for the period increased by 60.1% to 15.2 million euros from 9.5 million euros in the first semester last year, and Earnings After Taxes (EAT) reached 20.2 million euros from 10.6 million euros in the first half 2009. posting an increase of 91% y-o-y.

Commenting on the quarterly results Intralot Group CEO, Constantinos Antonopoulos, noted: "All results are very much in-line with our expectations and strategy for an improvement in operating cash flow generation and stabilization of profits in 2010.”

"Regarding sports betting payout in the second quarter 2010, and especially in relation to the Football World Cup, although we didn’t see excessive payouts as in previous such events, the relatively high payouts of first quarter 2010 showed very slight deterioration in most of the countries we operate."

"Since our previous results reporting, other developments include the extension of the OPAP contract, the acquisition of a minority stake in Favorit, a Russian betting operator, the extension of the New Zealand VLT monitoring system, an agreement with net Entertainment to offer Internet casino games in Italy, and our first supply contract in China. Finally, following a tender process, our first contract in the US, the Nebraska State lottery contract has been awarded to a competing company."

As previously mentioned, the company has entered into a stable course of business that is expected to continue in the next quarters, which is evident in the group’s net profits. In addition, numerous important projects that were in the implementation phase in first half 2010, such as Morocco, Minas Gerais in Brazil, 3 US state lotteries, the VLTs in Italy, will start to contribute gradually to our results over the next quarters."