INTRALOT US operations’ growth helps offset pandemic impact

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NTRALOT announced Monday its financial results for the nine-month period ended September 30,
2020.

Group revenue fell by 52.1% to €266.1 million (USD 322.4M) during the first nine months, with EBITDA at €45.2 million and Adjusted EBITDA at €40.4m. NIATMI (Net Income After Tax and Minority Interest) from continuing operations saw a loss of €63.5 million.

North America operations, under Intralot Inc., achieved significant year-over-year growth, with revenue growth of 13%, and EBITDA up 49.2%. INTRALOT said that by evaluating the latest available data and known lockdown conditions per jurisdiction and the restart of key sporting events, the company’s best estimate for COVID-19 impact for 2020 remains in the range of €25-28 million at Group’s EBITDA level.

“In 3Q20 INTRALOT continued its effort to mitigate the effects of COVID-19 and the impact from
adverse developments in certain jurisdictions, through consistent implementation of its business plan
and operational improvements,” said INTRALOT Chairman & CEO Sokratis P. Kokkalis, who returned to the position in mid-November in replacement of Christos Dimitriadis.

“Strong commercial performance in the US, in combination with Opex reductions worldwide and postponement of Capex, have limited the expected COVID-19 impact of Full Year EBITDA in the area of €25-28m. The reopening of the Australian market and the smoother operations in sports betting activities create a more positive picture for 4Q20. INTRALOT has also made significant progress in its discussions with its creditors to address the September 2021 Notes maturity and the overall Capital Structure and will provide an update in that respect soon,” Kokkalis added.

The third quarter saw the business continue to struggle from the loss of the Inteltek sports betting contract in Turkey and the loss of its Bulgarian licence. While this was partially offset by a one-off equipment and services sale in the Netherlands, and an improved US performance, revenue for the three months to 30 September was down 44.9% year-on-year at €97.8 million ($118.6M).

Furthermore, INTRALOT has been in talks with some of its stakeholders regarding its capital structure optimization process. Direct discussions with noteholders representing both the 2021 and 2024 senior unsecured notes, and holding approximately 60% of Group’s total senior unsecured notes, “are at an advanced stage and progressing efficiently. INTRALOT remains optimistic that an agreement will be announced in the near-term that will benefit all Group stakeholders.”

Within Q3 2020, INTRALOT signed a three year contract extension in New Zealand, from 2022 to 2025, with a one-year extension option, for the provision of Electronic Monitoring Services, as well as signed a contract extension through 2029 to continue its six-year partnership with the Georgia Lottery Corporation, providing advanced services for the operation of its COAM (Coin Operated Amusement Machines) project.

See the full Intralot report here.