Greek lottery and gaming solutions supplier Intralot reported a consolidated revenue decline of about €29.6 million (approximately $32 million at current exchange rates) for the six-month period ended June 30, 2023, compared to the same period last year. The company’s revenue for H1 2023 stood at €175.3 million ($190 million), down 14.4% from €204.8 million ($222 million) in the first half of last year.
On a quarterly basis, the three-month April-June revenue decreased 20% to €85.8 million ($93 million) from €107.2 million ($116 million) in Q2 of 22. The revenue decrease is primarily attributed to the license expiration in Malta in early July 2022.
A significant drop of €43.2 million or 66.2% in the Licensed Operations (B2C) segment, including a €43 million decline from revenue absence in Malta and slightly lower revenue in Argentina, are attributed as factors that drove the decline in topline performance.
The company recorded NIATMI (Net Income After Tax and Minority Interest) of €4.4 million compared to €-0.5 million a year ago. Meanwhile, Gross Gaming Revenue (GGR) stood at €163.6 million in H1 2023, posting a decrease of 2.9% from €168.5 million in H1 2022.
EBITDA grew to €62.8 million in 1H23, marking an increase of 14% from €55.1 million in 1H22. On a yearly basis, EBITDA margin on sales improved to 35.8%, from 26.9% in 1H22 (+8.9pps). On a quarterly basis, EBITDA remained unchanged.
“Intralot’s results for the first half of 2023 show continuing EBITDA growth of 14% and healthy cash flows as the company consistently focuses on higher profit margin activities and lower leverage ratios,” Sokratis P. Kokkalis, Chairman & CEO of Intralot, said.
“These developments allow us greater confidence in refinancing our upcoming maturities with an improved credit profile and address significant opportunities in the US and around the globe.”
US operations’ grew 7.4% year-on-year, mostly driven by the growth in the categories of Numerical and Instant games, which combined with Bilyoner’s improved performance, fully covered the impact of the Malta license termination, the company said. Sports Betting contracts in Montana and Washington, D.C. grew 8.6% and Technology and Support Services (B2B/ B2G) saw 4.7% increase.
Management (B2B/ B2G) contracts activity line grew 36.7% to €8 million on top of the strong momentum in Turkish operations (€7.8 million or +64.6%), driven by Bilyoner’s improved performance.
Excluding the impact of the discontinuation of the Malta license, underlying revenue from continuing operations increased by 8.3%, the company added.
From a contribution perspective, Lottery Games remained the largest contributor to Group turnover with a share of 58.7%, followed by Sports Betting with a share of 17.6%, VLTs monitoring with a share of 12.7%, Technology contracts with a share of 10.9%, and Racing with a share of 0.1%.
Original article: https://www.yogonet.com/international/noticias/2023/09/01/68572-malta-license-expiry-drives-144-dip-in-intralot-39s-h1-2023-revenue
