Intralot reports strong growth in H1

According to its official financial report, the main factors that drove top line performance per region are:

• In Europe primarily due to increased sales in Bulgaria (mainly due to Eurobet’s consolidation after July 2016) and Poland, following the recent regulatory changes.
• In North and South America, with the increase driven by Jamaican’s top line performance (improved performance of its Numerical games portfolio and the introduction of horse racing following the acquisition of the Caymanas Track), the improved performance in Argentina (Numerical and Sports Betting alike), and the start of INTRALOT’s new contract in Chile which fully counterbalanced the top line deficit from our US operations as a result of last year’s record high Powerball jackpot in 1Q16 and the sale of multi-play self-service lottery terminals in Ohio in 2Q16.
• €+26.6m stemming from all other regions primarily driven by Azerbaijan’s strong performance and the sale of a software license right in Australia which fully offset the sales gap from Turkey (vs. last year)
• On a quarterly basis, revenues increased by 10.1% compared to 2Q16, leading to total revenues for the three month period starting in April 1, 2017, and ending in June 30, 2017, of €365.3m. Increased revenues for the quarter are primarily attributed to increased sales in Azerbaijan, Jamaica, Poland and the sale of a software license in Australia that fully offset the US operations deficit due to last year’s self-service lottery terminals sale in 2Q16. Eurobet consolidation after July 2016 fully balances the revenue shortfall of Eurofootball due to last year EURO effect.
• Technology contracts accounted for 10.2% and VLTs represented 2.7% of Group turnover while Racing constituted the 3.6% of total revenues for the first half of 2017.

“Results for the first half of 2017, announced today, make it clear that this year represents a turning point for INTRALOT’s financial performance. Continued double digit revenue growth and profitability improvements are directly linked to reforms implemented in the previous year and more specifically to our M&A and partnership strategy. Strong local partnerships offer portfolio diversification, local market knowledge, and an asset light structure in addition to economies of scale and new strong revenue streams. Significant progress and strong trust from our clients have registered in mature and very competitive markets such as the United States. Recent renewals of flagship contracts in Ohio, Arkansas and Vermont secure our operational profitability and income visibility for the next 10 years, developing the US market into our biggest EBITDA contributor.

The company’s ability to renew in a competitive market such as the US, on top of its historical renewal track record, creates fresh confidence for the extension of all contracts maturing in the next year.  A recent filing for eligibility to float our shares in the Italian Stock Exchange by our local joint venture, Gamenet, also creates the prospects to capture and monetize the value of a key company asset,” said INTRALOT Group CEO Antonios Kerastaris.