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EBITDA increases while revenues fall in IntralotH1

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The results of the first half year 2023 at Intralot are mixed. EBITDA, cash flow and revenue have increased while turnover and revenues declined.

Intralot’s earnings before interest, taxes, depreciation, and amortization (EBITDA), grew by 14.0% during the first half of the year to EUR62.8m. (PS53.8m/$68.3m).

The revenue for the quarter fell 14.4% to EUR175.3m.

This includes the B2B revenues generated by Intralot from its supplier business as well as stakes bet by players via Intralot B2C operators.

Intralot added EUR123.5m to the EUR163.6m revenue by adding EUR29.8m for management contracts, EUR22.0m for licensed operations, and EUR123.5m from technology and support services.

Intralot attributes the improvement in EBITDA to the increase of 20.2%. The cash flow improved from EUR49.8m six-monthly, up EUR49.8m.

Look at the “significant” opportunities worldwide

Sokratis Kokkalis is the chairman and CEO at Intralot. He said the EBITDA would help Intralot expand in the US, and even beyond.

Kokkalis said that “Intralot’s first-half results of 2023 continue to show EBITDA growth at 14.0%, and healthy cash flow as the company continues to focus on activities with higher margins and lower leverage rates.”

These developments give us more confidence to refinance our maturities in the future with an enhanced credit profile, and take advantage of significant opportunities around the world.

Intralot has signed several significant agreements during the first half of this year. This included an agreement to supply the British Columbia Lottery Corporation with Intralot Orion’s sports betting platform as well as long-term deal with Taiwan Public Welfare Lottery.

EBIT increases despite lower sales costs

The majority of Intralot’s total turnover in the last six months was generated by its operations in North America, totalling EUR114.8m. Europe contributed EUR50.7m while EUR39.4m were attributed to other revenue. The turnover was reduced by EUR21.7m due to eliminations.

Lottery games accounted for the highest percentage of turnover at 58.7%. The second largest contributor was sports betting at 17.6%. Video lottery terminals were third at 12.7%.

The cost of sales for the first half of 2018 was EUR112.3m, which is a decrease of 24,3% from last year. The gross profit increased by 11.8%, to EUR62.9m.

The other operating revenue was EUR14.7m. Administrative expenses of EUR36.4m, however, offset this contribution. After selling expenses of EUR9.1m and research and development costs of EUR615,000, and other operating expenditures at EUR512,000 the total EBIT for the first half year was EUR30.9m. It was an increase of 69.6% annually.

Profitable H1

This was affected by EUR20,8m in interest and other expenses as well as EUR129,000 of losses on asset disposition and EUR369,000 from exchange differences.

The pre-tax profits for six months were EUR16.3m after adjusting various costs. These included EUR1.1m from investment income, EUR1.7m of interest income, and EUR3.7m net monetary profit.

After EUR7.1m of tax, H1 net profit reached EUR9.1m. This represents an increase of EUR8.8m from the previous year.

Second quarter

Intralot reported a turnover of EUR85.8m in the second quarter, a decline of 20.0%. Intralot attributes this to continuing effects from the expiration in Malta of its license in July 2022.

The revenue totaled EUR80.2m (down 9.6%).

The cost of sales for the third quarter totaled EUR55.4m, a decrease of 27.1% from Q2 2020. The gross profit was EUR30.3m for the third quarter, a 2.3% decrease from Q2 2022.

The total of other operating revenue was EUR6.9m. Administrative costs totaled EUR19.0m while sales expenses were EUR4.3m. Research and development costs were EUR264,000.

The EBIT rose 39.1% to EUR13.3m for the third quarter.

The remaining costs consisted of EUR10.1m for interest and other expenses, and EUR38,000 from losses resulting from asset disposal. After adjusting for additional income (including EUR1.1m of net monetary positions), the profit before tax was EUR5.3m.

After EUR2.1m of tax, the overall profit for the third quarter fell to EUR3.2m. This represents a 69.4% drop.

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