Intralot reached a 3.3% growth in 2015

Group Revenues increased 2.2% in Q4; reaching a 3.3% growth in FY 2015.

Overview

• - Comparable EBITDA up 13.6% in FY 2015 (+8.0% in 4Q15)
• - Reported EBITDA upward by 3.5% in 4Q15, delivering an increase of 1.0% y-o-y
• - Cash Flow positive in 4Q 2015 ; Net debt decreased by €6.4m in 4Q
• - Market share in Lottery Gaming Systems and Related Services maintained; 28%
  share in international public tenders in 2015.

The firm also said that it had significant wins /renewals in mature markets (US, Netherlands) and Africa, and remarked that its strategic alliance with Gamenet is a milestone in partnering with strong local players.

Besides, its product portfolio strategy is on track: investment in Bit8; granted 21 new patents, bringing patent portfolio to 120; its new interactive CANVAS platform (dynamic content management system) is developed and completed.

Commenting on the FY 2015 Results Intralot Group CEO, Antonios Kerastaris, said: “Intralot’s financial performance in 2015 confirms our resilience and growth potential in challenging times, marked by sustainable revenue and Ebidta, along with positive free cash flow in the last quarter of the year. New contracts and renewals in the US, the Netherlands, Morocco, Nigeria, and Kenya underscore our ability to sustain and grow our business through select markets across the globe. Going forward we expect accelerating revenue and Ebidta growth, propelled by a healthy pipeline of new contracts (starting with the Chile National Lottery and Brazil Minas Gerais district lottery operations) coupled by an operating model that focuses on cashflow generation through a rationalization of our cost base and balance sheet structure.”

“Overall, we remain committed to transforming Intralot from a project-based company to a products and services gaming specialist. Implementing this strategy we first sharpen and diversify our offering through a combination of “gaming competence centers” and targeted investments in companies such as Bit8 and its acclaimed CRM platform.  Secondly we expand our global partnership network in licensed operations and managed services: our recent alliance with Gamenet in Italy is the first in a series of potential transactions that seek to rebalance our footprint, release growth capital and unleash Intralot’s full potential as a unique player in the global gaming scene,” he remarked.

Revenues

• -Reported consolidated revenues increased by 2.2% in 4Q15 compared to same period a year ago driven by the performance in Italy, Jamaica, Bulgaria, Argentina which were partially offset by the performance in Greece, Australia, USA and Brazil.
• -Revenues on a yearly basis grew by 3.3%, to €1,914.9m from €1,853.2m in the FY14 period, representing an increase of €61.7m.
• -The increase derives from: +103.3m in South America, mainly due to the strong performance of Jamaica, Argentina and Peru, +13.6m in West Europe mainly due to the increased revenues in Italy, +9.4m in East Europe mainly due to Bulgaria and Turkey, +6.6m in North America, -+2.4m in Africa, and -73.5m in Australasia due to the sale of the Victorian license in February 2015 and the softer sales in Azerbaijan.
• -Adjusting full year performance on a continuing basis, excluding discontinued business (OPAP, Romania and Victoria), revenues were increased by 4.2%.
• -Sports Betting is the largest contributor to our top line, comprising 47.2% of our revenues (+0.6% vs. FY14), followed by numerical games contributing 31.3% to Group turnover (+8.9% vs. FY14). VLTs/AWPs represented 11.1% of Group turnover (+10.6% vs. FY14), followed by Technology contracts with 7.6% (-4.1% vs. FY14) and Racing with 2.8% (-11.3% vs. FY14).

Group CEO, Antonios Kerastaris, noted: “Intralot’s financial performance in 2015 confirms our resilience and growth potential in challenging times, marked by sustainable revenue and Ebidta, along with positive free cash flow in the last quarter of the year. 
“New contracts and renewals in the US, the Netherlands, Morocco, Nigeria, and Kenya underscore our ability to sustain and grow our business through select markets across the globe.  Going forward we expect accelerating revenue and Ebidta growth, propelled by a healthy pipeline of new contracts (starting with the Chile National Lottery and Brazil Minas Gerais district lottery operations) coupled by an operating model that focuses on cashflow generation through a rationalization of our cost base and balance sheet structure."