Intralot announced an 8.2% increase in turnover year-on-year, reaching €100.2 million. This growth was attributed to a significant rise in business from the US and a new contract with Hrvatska Lutrija in Croatia. The recovery from the pandemic also played a key role in the firm's performance across other crucial markets.
Technology supply deals were the primary revenue driver, contributing €56.2 million. Licensed B2C operations added €33.2 million, while game management contracts accounted for €10.3 million of the turnover.
After accounting for player winnings from licensed operations, gross gaming revenue for this segment was €12.6 million. Alongside €67.9 million from B2B contracts, Intralot's total revenue reached €80.5 million, marking an 8.5% increase.
Costs of sales, which include player winnings and related expenses, decreased slightly to €71.4 million. Deducting these costs from turnover yielded a gross profit of €28.8 million, with an increase in earnings before interest and tax (EBIT) to €6.3 million after operating expenses were included.
Adjusting for interest, depreciation, and amortization charges led to earnings before interest, tax, depreciation, and amortization (EBITDA) of €28.3 million, a notable 49.5% rise.
Intralot also reported significant gains of €42.2 million from third-party investments and €46.0 million in interest income, allowing operating profit to soar from a loss of €13.7 million in Q3 2020 to a profit of €67.2 million.
After taxes of €3.7 million and a small loss from discontinued operations, net profit for the quarter was €63.5 million. This strong performance in Q3 contributed to a year-to-date turnover increase of 24.4%, totaling €302.8 million, supported by growth across all major segments.
Turnover from licensed operations surged 37.7% to €94.8 million, fueled by advances in Malta and Argentina, where performance offset challenges from unfavorable currency exchanges.
Technology and support services emerged as the largest contributors to year-to-date turnover, generating €173.4 million. The US market alone saw a 22.9% year-over-year increase, driven by lottery operations and a substantial jackpot in January. Australia also showed a strong recovery from the pandemic, while Argentina's performance, along with the launch of the contract in Croatia, mitigated declines elsewhere.
Management contracts experienced the largest growth, up 65.8% to €34.6 million, propelled by better results from Bilyoner in Turkey. In addition, the contract with La Marocaine Des Jeux et Des Sports in Morocco saw an increase of €3.7 million, and new sports betting initiatives in Washington DC and Montana contributed €3.3 million.
Breaking down turnover by product, lottery dominated with €183.8 million, followed by sports betting at €53.0 million, and €36.9 million from IT products and services. Racing accounted for €1.5 million, and video lottery terminals (VLTs) contributed €27.6 million.
After deducting player winnings, gross gaming revenue amounted to €244.4 million, an increase of 21.2% from the previous year. With costs of sales totaling €216.3 million over the nine months ending September 30, Intralot recorded a gross profit of €86.5 million. After accounting for other income and operating expenses, EBIT reached €17.5 million, a significant recovery from the €9.2 million loss reported for the same period in 2020. EBITDA stood at €82.6 million, nearly double that of the prior year.
The improved income from investments and interest during Q3 significantly enhanced Intralot's results, flipping an operating loss into a profit of €56.8 million. After taxes and losses from discontinued operations, the year-to-date profit was €40.0 million, a stark contrast to the €62.0 million loss reported previously.
"The nine-month results reflect the continuing strong operational performance combined with the positive impact of the capital structure optimisation agreement achieved at the beginning of August," said Intralot chairman and chief executive Sokratis Kokkalis. "The improvement in cash flow generation and elevated EBITDA margins, bolstered by reduced future debt servicing costs, underscore Intralot's strengthened financial profile and potential for growth through strategic partnerships."
