NTRALOT announced last Friday its financial results for the first half of the year, posting a 34.4% revenue growth and EBITDA up 106.5% for the six months ended June 30.
The Greek gaming solutions and operations company saw group revenue of £202.6 million and EBITDA in 1H21 at £54.3 million, while Adjusted EBITDA reached £46.8 million.
“These financial results, in combination with the completion of INTRALOT’s debt restructuring in the beginning of August, set the company in a stable course to fulfill its potential in its key markets, build new partnerships, and tap on new opportunities under its new, significantly deleveraged capital structure, with a leaner operating model,” said Chairman and CEO Sokratis P. Kokkalis.
Other highlights for the period include operations under US entity Intralot Inc. achieving strong growth year-over-year, with revenue up 28.6% and EBITDA up 69.8% versus 2020. Moreover, the company was able to contain the COVID-19 pandemic impact for the first half of the year, in the vicinity of c. £1.5 million at group’s EBITDA level.
Lottery games were the largest contributor to the company’s top line, comprising 59.5% of revenue, followed by sports betting, which contributed 18.3% to group turnover in 1H2021. Technology contracts followed with 12.2%, and VLTs represented 9.5% of group turnover; racing constituted 0.5%.
The company also issued a Coronavirus pandemic impact update. While INTRALOT believes the economic fallout will continue to affect business activities, until COVID-19 is fully contained, gaming markets in which the company operates “substantially improved” compared to 2020, while consumer demand in the US remains strong.
Based on current performance and actions taken by subsidiaries, the EBITDA impact from the pandemic is not expected to be significant post 1H21, and will be limited to c. £3.0 million on an annual basis, attributable mainly to restrictions in Australia and impact in Western Europe.
On May 14, INTRALOT announced the sale of its Brazilian business to SAGA. The company is to continue to provide its gaming technology to Intralot do Brasil following closing of the transaction. The sale, completed before the end of the H1 period, on June 18, saw net cash consideration for the stake sale of £0.7 million.
The debt restructuring in August saw the company refinancing notes due in September, reducing total debt liabilities. New notes valued at $242+ million due September 2025 were issued in exchange for existing notes maturing in September 2021, corresponding to an 18% discount. The entry of significant institutional investors is expected to improve the company’s capabilities to leverage new opportunities in developed markets.
“Today is a historic day for INTRALOT, achieving its two goals related to its capital structure, to refinance the Notes due September 2021 and to reduce by £163 million its total debt liabilities,” said Kokkalis in early August.