Publishing its 2019 interim results (period ending 30 June), Athens-listed gambling technology group Intralot SPA reports continued operating declines across its three core business verticals of ‘Licensed Operations’, ‘Management Contracts’ and ‘Technology Provisions’.
A tough H1 2019 trading period sees Intralot governance outline multiple factors impacting the company’s performance, including negative currency fluctuations, macro impacts, decreasing management contracts combined with further transition costs, as the Athens technology group reports declines across all its core metrics and KPIs.
Facing multiple headwinds, Intralot reports a 7.6% decline in group revenues to €378 million (H12018: €409m), which the company attributes to a series of regional decreases impacting primarily its licensed operations and management contract units.
A breakdown of business activity sees Intralot’s licensed operations report a 10% revenue decline to €229 million (H12018: €255m), which the technology group attributes to severe FX impacts felt in Argentina and a slowdown of sports betting wagers for its Eurobet Bulgaria subsidiary.
In addition, the trading period saw Intralot report a 8.5% revenue decrease across its management contracts to €44 million (H12018: €48m), as its Turkish INTELTEK unit booked in a €3 million in impairment charges, whilst suffering further from negative FX factors.
This August, sees Intralot forced to close down its INTELTEK operations, having failed to renew its management contract of the betting subsidiary with Turkish authorities. In addition, Turkish online betting operator Bilyoner has been placed on ‘one-year renewable terms‘ at the discretion of Turkish administrators.
Closing H1 2019 trading, Intralot governance declares operating profits of €76 million, down 16% on corresponding 2018’s €90 million, with the company posting a further EBITDA decline of 16% to €59 million (H12018: €70m).
Addressing market concerns, last May Intralot governance executed an overhaul of its executive management team across its technology, digital and commercial departments, branded as the firm’s first actions of its corporate recovery programme.
Updating the market, Group CEO Sokratis Kokkalis stated: “We are still absorbing the business impacts of last year’s negative developments, reflect improvement in operating cash flows and liquidity by successfully implementing our three-pillar strategy for operational improvements, new business, and non-core asset disposals.
“We successfully completed the delivery and transition to the Lotos X new central system for our historic client OPAP in July, and came to an agreement with OPAP for the disposal of our 16.5% participation in Hellenic Lotteries for a consideration of €20.0m.
“The renewal of our contract with the DC Lottery to include Sportsbetting and the award of a new Sportsbetting contract in Morocco demonstrate INTRALOT’s readiness to tap fresh opportunities with cutting-edge new technological solutions.”