Intralot estimates COVID-19 impact of up to USD 32.6 M for 2020

Intralot, an international gaming solutions and operations leader, announced Monday its financial results for the twelve-month period ended December 31, 2019.

Group revenue amounted to €720.6 million in full year 19, down 8.1% from the same period of the prior year. EBITDA was €87.8 million, a drop of 25.4% year-over-year, while Adjusted EBITDA was reported at €68.7 million (-21.0% YoY).

Revenue and EBITDA saw a contraction of -4.7% and -20.3% year-on-year respectively on a constant currency basis. Net Income After Tax and Minority Interest (NIATMI) from continuing operations was reported at €-111.9 million.

Operating Cash Flow amounted to €61.3 million in full year 2019, lower by €27.3 million from the same period of the prior year. Group cash at the end of the period was at €171.1 million, higher by €8.6 million year-over-year. Net debt was €594.1 million, lower by €21.2 million YoY.

In terms of recent highlights, on March 9, 2020, the company announced that Sokratis Kokkalis, who remains Executive Chairman of the Board, stepped down as Group CEO and was succeeded by Christos Dimitriadis, effective that same date.

Furthermore, Intralot successfully delivered its sports betting solution to the DC Lottery in late March, with official Go-Live postponed until the US leagues and events resume following the Covid-19 pandemic. Intralot’s sports betting solution in Montana has been launched in mid-March, just a few days before all US leagues and events were postponed due to the Covid-19 pandemic.

By evaluating all available data in mid-April 2020, the company said its best estimate on Covid-19 impact for 2020 is in the range of €25-30 million (USD 27.1 M - 32.6 M) at Group’s EBITDA level. On April 23, 2020, Intralot announced that it has retained Evercore Partners and Allen & Overy, as financial and legal advisors respectively, to review and implement strategic alternatives for the business.

Intralot Group Chairman Sokratis P. Kokkalis commented: “2019 has been a transition year for Intralot. I have set the cornerstones of the transformation of the Group by implementing a restructuring of our project portfolio through divestments of non-core assets; renewing existing contracts and winning new business with a focus in North America; launching our new products; and optimizing our cost structure. With the appointment of Mr. Christos Dimitriadis as Group CEO in 2020, Intralot is enabled towards technology-driven evolution, leveraging his long experience and global expertise to achieve growth and value creation.”

CEO Dimitriadis stated the company has successfully implemented a cost saving program at HQ resulting in €11 million of savings “that have partly offset adverse developments related to the loss of the Turkish land-based sports betting contract, the negative impact of the regulatory changes in online betting in Turkey and one-time cost overruns.” 

“Looking into the future and as we go through the 4th industrial revolution, we are prepared to capitalize on our recent investments in building state-of-the-art products and in achieving economies of scale. The transformative power of our technology will play a key role in business innovation and value creation, together with an even more customer-centric new organizational structure,” Dimitriadis concluded.

See full Intralot Full Year 2019 Financial Results.