Intralot Sees Upswing in Revenue, But Currency Rate Fluctuations Impact Growth
Posted on: May 30, 2022, 10:27h.
Last updated on: May 30, 2022, 10:44h.
Intralot, the global lottery and gaming company, continues to find new success. After a solid 2021 that marked a rebound for the company, the first quarter of the year brought additional good news.
In its latest financial health update, the Athens-listed gaming and betting technology group recorded corporate revenues of €415 million (US$447.45 million). That is a 20% increase on its 2021 results of €345 million (US$372.01 million).
The increase in consolidated revenue was attributed to the overall growth achieved by Intralot’s B2C licensed core operating units, which added €33 million (US$35.58 million). Also assisting was its technology services arm, with €22 million (US$23.72 million), and managed B2B contracts, with €14 million (US$15.1 million).
Double-Digit Growth Boosts Bottom Line
Intralot’s B2C licensed operations in Malta maintained their double-digit growth profile, with sales up €18 million (US$19.41 million). This represents an increase of 23%. Similarly, B2C licensed operations outweighed the continued local currency exchange rate impacts in Argentina. As a result, it recorded an increase in sales of €15 million (US$16.17 million), a 68% jump “in constant currency.”
The company’s Technology Services unit continues to benefit from contract expansions in North America. Intralot INC, its US gaming division, recorded recurring sales of €17 million (US$18.33 million) for a 19% improvement. The results “offset the negative side effect of adverse US dollar movements against the euro,” according to the company’s statement.
The continued recovery of Intralot’s managed B2B contracts resulted in additional money in the pocket. The unit benefited from a cash surplus of €6.6 million (US$7.11 million) from the Bilyoner sports betting business in Turkey. However, a 30% depreciation in the Turkish lira against the euro caused a decline.
In spite of the difficulties in Turkey, Intralot has continued to diversify the business revenues coming from its managed B2B contracts. This segment accounted for €3.3 million (US$3.56 million) out of its Montana and Washington, DC, partnerships.
The unit’s growth saw Intralot record a 66% increase in earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter. The figure was €110 million (US$118.62 million), a significant improvement over the €66 million (US$71.17 million) in the same period last year. The increase comes as the company had corporate expenses 10% higher than a year ago.
However, there is still work to be done. Intralot improved its appearance on its balance sheet, recording losses in its pre-tax income of €2.3 million (US$2.48 million). This is a gain from the €2.8-million (US$3.01 million) loss in the first quarter of 2021.
Wyoming Fortifies US Footprint
Intralot has picked up a number of new contracts or renewals over the past year that will give it additional stability. Recently, it announced that its US subsidiary had signed a five-year extension of its contract with the Wyoming Lottery. This will allow it to continue to provide its operating system and lottery services until August 2029.
The company has maintained a close collaboration with the Wyoming Lottery Corporation (WLC) since the launch of WyoLotto in 2014. In this regard, both are participating in the expansion of the WLC’s gaming portfolio, while adding their most recent draw game, 2by2, which it introduced in March 2021.
Fortified by its continued success and contract renewals, Intralot wants to increase its share capital. Chairman and CEO Sokratis P. Kokkalis already sent out a call to shareholders for a meeting to approve the measure.