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INTRALOT announces strong EBITDA growth +29.2% y-o-y and positive Earnings after Tax at €3.1m in 1Q23
INTRALOT SA (RIC: INLr.AT, Bloomberg: INLOT GA), an international gaming solutions and operations leader, announces its financial results for the three–month period ended March 31st, 2023, prepared in accordance with IFRS.
OVERVIEW
- Group Revenue at €89.5m (–8.4% y–o–y).
- EBITDA at €33.7m (+29.2% y–o–y) in 1Q23, with EBITDA margin reaching 37.7% from 26.7% in 1Q22.
- LTM EBITDA at €130.5m, up by 6.2% vs. FY22.
- Substantial growth in our US operations (Revenues +13.1%, EBITDA +31.6% y–o–y).
- EBT in 1Q23 shaped at €10.9m vs. €–2.3m in 1Q22.
- NIATMI (Net Income After Tax and Minority Interest) at €3.1m, vs. €–5.7m a year ago.
- Operating Cash Flow at €37.2m in 1Q23 (+115.3% y–o–y).
- Group Net CAPEX in 1Q23 was €7.2m.
- Group Cash at the end of 1Q23 at €109.2m, €6.8m higher vs. Dec–22.
- Net Debt at €471.6m at the end of 1Q23, lower by €18.9m vs. Dec–22 and €29.0m vs. 1Q22.
- Net Debt/ LTM EBITDA at 3.6x in 1Q23 vs. 4.0x in FY22.
Group Headline Figures
INTRALOT Chairman & CEO Sokratis P. Kokkalis noted:
We are extremely proud of first quarter robust organic Ebitda growth of 29% and a return to Net Earnings, along with healthy cash flows and significant reduction of Group Net Leverage Ratio down to 3.6x, providing additional momentum to INTRALOT’s successful turnaround story as a result of our consistent efforts in the past few years. With healthy financials and new technical capabilities offered through next generation solutions for Lottery digital transformation, in both the retail and online worlds, we look forward to timely addressing upcoming maturities, further improving our capital structure, and implementing an ambitious plan for strong and sustainable growth in the US and key markets around the world, creating value for all stakeholders.
OVERVIEW OF RESULTS
REVENUE
Although the reported consolidated revenue posted a decrease compared to 1Q22, leading to a total revenue for the three–month period ended March 31st, 2023, of €89.5m (–8.4%), excluding the impact from the discontinuation of Malta license, underlying revenue from continuing operations increased by 17.5%.
- From a contribution perspective, Lottery Games remain our largest contributor to Group turnover with a share of 60.4%, followed by Sports Betting with a share of 17.5%, VLTs monitoring with a share of 12.5%, Technology contracts with a share of 9.5%, and Racing with a share of 0.1%.
- Reported consolidated revenue for the three–month period is lower by €8.2m year over year. The main factors that drove top line performance per Business Activity are:
- €–20.4m (–64.5%) from our Licensed Operations (B2C) activity line with the variance driven by:
- Lower revenue in Malta (€–21.5m) due to the license expiration early July 2022 and
- Higher revenue in Argentina (€+1.1m or +10.9% y–o–y), driven by local market growth. In local currency, current year results posted a +104.5% y–o–y increase.
- €+6.3m (+11.4%) from our Technology and Support Services (B2B/ B2G) activity line, with the variance driven by:
- US operations’ increased revenue (€+4.6m or +13.1% y–o–y), mostly driven by the growth in Numerical and Instant games, further affected by the EUR depreciation (–4.3% versus a year ago – in average terms) and
- Higher revenue from rest jurisdictions (€+1.7m or +8.6%).
- €+5.9m (+54.2%) from our Management (B2B/ B2G) contracts activity line with the variance driven by:
- Strong momentum of our Turkish3 operations (€+5.8m), driven by Bilyoner’s improved performance, favored by the growth of the online market. In 1Q23, the local Sports Betting market expanded close to 2.2 times y–o–y. Performance in Euro terms was partially mitigated by the headwinds in Turkish lira (+28.1% Euro appreciation versus a year ago),
- Higher revenue from our US Sports Betting contracts in Montana and Washington, D.C. (€+0.1m) and
- Steady performance in Morocco.
- €–20.4m (–64.5%) from our Licensed Operations (B2C) activity line with the variance driven by:
GROSS GAMING REVENUE & Payout
- Gross Gaming Revenue (GGR) concluded at €83.4m in 1Q23, posting an increase of 4.5% (or €+3.6m) year over year. The improved performance across most key regions managed to absorb the loss of sales from Malta and the higher payout ratio in Argentina (–67.7% y–o–y on wagers from licensed operations4). 1Q23 Payout Ratio5 was higher by 3.5pps vs. 1Q22 (62.4% vs. 58.9%).
OPERATING EXPENSES & EBITDA
- Total Operating Expenses marginally increased by €0.9m (or +3.9%) in 1Q23 (€22.7m vs. €21.8m) driven by the improved top–line performance in USA and Turkey
- Other Operating Income from continuing operations ended at €7.8m presenting an increase of 37.0% y–o–y (or €+2.1m).
- EBITDA amounted to €33.7m in 1Q23, posting a double–digit growth of 29.2% (or €+7.6m) compared to 1Q22. The main drivers underpinning this performance are attributed to the strong growth in our US operations and the boosted performance in Turkey.
- On a yearly basis, EBITDA margin on sales climbed to 37.7%, from 26.7% in 1Q22 (+11.0pps).
- LTM EBITDA stands at €130.5m, up by 6.2% vs. FY22.
EBT / NIATMI
- EBT in 1Q23 amounted to €10.9m compared to €–2.3m in 1Q22, largely driven by the significant EBITDA contribution, the improved results from participations and investments, the gains on net monetary position and the benefit from the lower D&A.
- NIATMI in 1Q23 concluded at €3.1m compared to €–5.7m in 1Q22.
CASH FLOW
- Operating Cash–flow in 1Q23 amounted to €37.2m, increased by €19.9m, compared to 1Q22. The positive impact arising from the higher recorded EBITDA y–o–y and the favorable working capital movement was partially offset by the negative variance in tax payments.
- Net CAPEX in 1Q23 was €7.2m, higher by €2.9m compared to 1Q22, with US projects consuming most of the CAPEX needs.
- Net Debt, as of March 31st, 2023, stood at €471.6m, decreased by €18.9m compared to December 31st, 2022. Robust cash flow generation supported the continued deleveraging, with Net Debt / EBITDA dropping to 3.6x in 1Q23, from 4.0x in Dec–22. Positive gross debt movements include the capital payments towards the Term Loan in US, the lower interest accrued in comparison with Dec–22 and the positive FX impact on our USD denominated debt.
OUTLOOK/RISKS
The Company Management identifies significant opportunities in the growth of the Lottery and Sports Betting online markets and the expansion of regulated i–lottery markets, as well as from the recovery from the implications of the recent pandemic. Combined with the evolution of INTRALOT’s new technological solutions for Lottery digital transformation, the Company is in position to capture more technology projects with an increased profit margin compared to previous years.
World economies continue to navigate through macroeconomic uncertainties, with interest rates at high levels and relatively slow economic growth.
Increased interest rates have a direct impact on the financing servicing costs of the Intralot Group, while the outlook indicates that central banks may start to ease their monetary policy by the end of 2023.
nflation is declining more slowly than expected, having strong impact on most of the industries and regions. However, the gaming industry seems to be more resilient than other sectors of the economy, presenting above average growth in most regions.
The Management of the Company closely monitors geopolitical and economic developments and is ready to take all the necessary measures for protecting its operations.
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The MeridianBet – Golden Matrix Transaction Secures Approval at GMGI Shareholder Assembly
The MeridianBet Group, Southeast Europe’s leading Business-to-Consumer (B2C) sports betting and gaming group, operating in multiple markets across Europe, Africa and Latin America, announced that the shareholders of Golden Matrix Group (GMG), a developer, licensor and global operator of online gaming and eCommerce platforms, systems and gaming content, have voted to approve the acquisition of MeridianBet.
Commenting on the merger Zoran Milosevic, Chief Executive Officer of MeridianBet Group, said: “Today marks a major milestone for MeridianBet and I am thrilled that the shareholders of Golden Matrix have overwhelmingly voted in favor of the acquisition of MeridianBet. By joining forces, we are not only expanding our reach but enhancing our ability to provide customers with a diverse and comprehensive offering whilst creating a leading global betting group. I look forward to announcing the completion of the deal in due course.”
The post The MeridianBet – Golden Matrix Transaction Secures Approval at GMGI Shareholder Assembly appeared first on European Gaming Industry News.
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BMM INNOVATION GROUP TO EXHIBIT AT THE INDIAN GAMING TRADESHOW (IGA) APRIL 10-11 AT THE ANAHEIM CONVENTION CENTER, DEMONSTRATING COMMITMENT TO TRIBAL PARTNERSHIPS, INDUSTRY ADVANCEMENT
The BMM Innovation Group will exhibit in Booth No. 628
BMM Innovation Group (“BIG” or the Company), a technology conglomerate providing world-class services and cutting-edge solutions to the global gaming industry, today announced that the Company and its representatives are exhibiting, attending, and speaking at the Indian Gaming Association (IGA) Tradeshow April 10-11 at the Anaheim Convention Center in Anaheim, California. BIG, which includes BMM Testlabs, BIG Cyber, and RG24seven Virtual Training, will exhibit in Booth No. 628.
BMM Innovation Group Chief Marketing Officer Laura Olson-Reyes said, “The IGA event serves as a cornerstone in our ongoing commitment to strengthening partnerships with Tribal stakeholders, understanding their evolving needs, and collectively driving innovation and progress in the industry. We are excited to engage in insightful discussions, share our expertise, and showcase our latest services that empower and protect Tribal enterprises.
Experts and thought leaders from BMM Testlabs, BIG Cyber, and RG24seven Virtual Training will be on hand at the booth to discuss the Companyߣs testing, certification, cybersecurity, and training solutions for land-based and digital Tribal markets.
In a show of support for Tribal gaming, the BIG Group will be presenting a scholarship to the Tribal Gaming Protection Networkߣs NextGen initiative during the show. This initiative brings together a talented group of emerging leaders and young professionals in the Tribal gaming industry.
Olson-Reyes said, Éc;We are proud to have served Tribal gaming and supported its communities for more than 23 years, and we are honored to contribute to the Tribal Gaming Protection Network and its focus on creating a nurturing environment for young professionals to collaborate, learn, and lead in the Tribal gaming sector.
BIGߣs thought leaders will speak on several panels during the IGA conference:
- 3 p.m. Monday, April 8 Room 204B: Amit Sharma, Chief Executive Officer of BIG Cyber, will present on Data Security and Privacy in AI-Enabled Casinos
- 10 a.m. Tuesday, April 9 Room 203B: Sharma will speak on a panel on Tribal Gaming Security Standards ߝ why they matter and a possible roadmap to building a dedicated Tribal security gold standard
- 3 p.m. Tuesday, April 9 Room 204A: Wendy Anderson, Chief Executive Officer of RG24seven Virtual Training, will speak on a panel focused on The Staffing Challenge: Innovative Approaches to Casino Workforce Management
Visit xpressreg.net to register for free entrance to the IGA trade show exhibits, courtesy of BMM.
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Casimaru.com, a leading online casino portal web site that has garnered attention for its exclusive offers, accurate information, and entertaining content. As a hub for both avid casino enthusiasts and beginners, Casimaru.com has become synonymous with a top-tier portal web site, listing numerous online casino sites that cater to players of varying preferences.
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The post Casimaru.com Reinforces the Product with the New Free-Play Feature appeared first on European Gaming Industry News.
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