Gaming and sportsbetting giant Intralot has reported annual increases in revenues and earnings as it prepares to purchase a 49 per cent stake in Bulgarian gaming firm Eurobet.
[dropcap]G[/dropcap]reek gaming and sportsbetting giant Intralot has issued its annual financial results showing a 3.3 per cent increase year-on-year in total revenues to E1.94bn ($2.19bn) thanks in large part to its recent performance in the South American market.
Intralot saw comparable earnings before interest, tax, depreciation and amortisation for the twelve-month period rise by 13.6 per cent to E177.2m ($200.7m) while this positive cashflow saw it pay off E6.4m ($7.2m) of its net debt.
Systems from Intralot handled E24.4bn ($27.6bn) in worldwide wagers during 2015, which represented a 12.2 per cent boost yearon- year, led by South America with a 30 per cent swell. There was also a 27.3 per cent improvement from North America and an 18.2 per cent improvement in Asia, while further advances in Africa and Eastern Europe offset a 5.1 per cent annual decline in Western Europe.
“Intralot’s financial performance in 2015 confirms our resilience and growth potential in challenging times, marked by sustainable revenue and earnings before interest, tax, depreciation and amortisation along with positive free cashflow in the last quarter of the year,” said Antonios Kerastaris, CEO for the Athens-based firm.
Sportsbetting remained the largest contributor to Intralot’s top line, comprising 47.2 percent of its annual revenues, which represented an increase of 0.6 per cent year-on-year, followed by numerical games at 31.3 per cent and video lottery terminals and AWPs on 11.1 per cent. The innovator additionally saw 7.6 per cent of its 2015 earnings derived from technology contracts while 2.8 per cent came from racing.
“New contracts and renewals in the United States, the Netherlands, Morocco, Nigeria and Kenya underscore our ability to sustain and grow our business through select markets across the globe,” said Kerastaris. “Going forward, we expect accelerating revenue and earnings before interest, tax, depreciation and amortisation growth propelled by a healthy pipeline of new contracts starting with the Chile National Lottery and Brazil Minas Gerais district lottery operations coupled by an operating model that focuses on cashflow generation through a rationalisation of our cost base and balance sheet structure.
“Overall, we remain committed to transforming Intralot from a project-based company to a products and services gaming specialist. Implementing this strategy we first sharpen and diversify our offering through a combination of ‘gaming competence centres’ and targeted investments in companies such as Bit8 and its acclaimed customer relationship management platform.
“Second, we expand our global partnership network in licensed operations and managed services; our recent alliance with Gamenet in Italy is the first in a series of potential transactions that seek to rebalance our footprint, release growth capital and unleash Intralot’s full potential as a unique player in the global gaming scene.”
Intralot also announced that it has agreed a deal through its Bilot subsidiary to purchase a 49 per cent stake in Bulgarian gaming firm Eurobet for an undisclosed amount.
Eurobet provides numerical games and scratchcard tickets through a network of some 1,100 points of sale across the country, with Intralot stating that it expects the acquisition to be finalised by June, subject to regulatory approvals.
“The complementing of the product offerings between our companies will lead to us strengthening our operations in a more consolidated market,” Kerastaris. “This acquisition aligns with our business growth strategy to seal strategic partnerships with strong local players. Through synergies with Eurobet’s assets we will be able to further boost our operations in Bulgaria and sustain our leading position in the area.”