Lottomatica announced 2012 second quarter results

"Lottomatica Group had a good quarter," said Marco Sala, CEO of Lottomatica Group. "The results underscore the resiliency and sustainability of our business. Our diversified product offerings and the wide-ranging geographies we serve have supported the Group well in the face of economic uncertainties in some of the jurisdictions in which we operate. Notably, the potential for additional private manager opportunities is very encouraging. Through the half year, we are delivering on our commitments and are confident that we will achieve our full-year guidance."

"The underlying operating cash generation for the Group was good," said Alberto Fornaro, CFO of Lottomatica Group. "Strong cash flow provided the capacity to fund payments for dividends, minorities, and income taxes in the quarter. Net income attributable to the parent in the second quarter grew by 38% when compared to the prior year."

Second-quarter consolidated results

For the second quarter ended June 30, 2012, Revenues totaled 742.7 million euros, compared to 702.6 million euros in the second quarter of 2011, up 5.7%. Revenue growth was driven by business performance outside of Italy and favorable foreign exchange rates. On a constant currency basis, revenues for the second quarter of 2012 grew approximately 11.5 million euros, or approximately 2%, compared to the same period last year.

EBITDA increased 5.8% in the second quarter of 2012 to 259.7 million euros versus 245.4 million euros in the same period last year, driven by positive performance of all business segments, led by GTECH Lottery. At constant currency, EBITDA grew approximately 6.3 million euros, or approximately 3%, compared to the second quarter of 2011.

Operating income was 153 million euros in the second quarter, compared to 140 million euros in the second quarter of last year, up 9.3%.  Net income attributable to the parent was 63.8 million euros in the second quarter of 2012 versus 46.2 million euros in the same period last year.

At June 30, 2012, Consolidated Shareholders' Equity totaled 2.66 billion euros. Lottomatica Group had a Net Financial Position (NFP) of 2.70 billion euros, compared to 2.74 billion euros as of December 31, 2011.

GTECH Lottery
Total Gtech lottery revenues for the first half of 2012 grew 24.6% over the same period last year to 475.8 million euros. On a constant currency basis, revenues grew by 15.8%. Same store revenue was up approximately 10% year-over-year, driven by record first quarter jackpot activity in the U.S., as well as increased instant-ticket sales in California, Illinois and Texas, among other states. The continued recovery of Gtech's customer in the Czech Republic also contributed favorably to same store revenue growth. In addition, revenues were positively impacted by compensation for Northstar's management services in Illinois and favorable foreign exchange.

SPIELO International
Compared to the first six months of 2011, Spielo International revenue for the first half of 2012 increased 6.3% to 141.1 million euros due to higher third-party product sales in Italy, particularly in the AWP segment, higher service revenue from Italian VLTs and public gaming in the U.S., as well as favorable foreign exchange rates. This increase was partially offset by lower intercompany VLT product sales to Lottomatica.