Intralot focuses on group transitions as dire results continue

Athens-listed gambling technology group Intralot SPA has posted a further quarter of negative declines across its core business metrics and KPIs as it continues to focus on a business transformation programme to counter corporate headwinds for its operating markets.

Publishing its latest Q3 2019 trading statement (period ending 30 September), Intralot reports a 6% decrease in year-to-date revenues of €555 million (YTD2018: €597m).

Updating investors, Intralot highlights multiple factors impacting its corporate performance, including a slowdown in growth for B2C sportsbook subsidiaries, declining management contracts, negative currency market fluctuations and further macro factors.

As reported during H1 trading, Intralot’s B2C sports betting division continues to be impacted by wagering declines impacting the performance of its Eurobet Bulgaria division (-€22m).

The Greek gambling operator cannot escape severe ARG Peso declines impacting the performance of its Argentine sports betting unit which currently tracks at revenue €18 million behind 2018 comparatives.

Q3 2019 trading saw Intralot officially discontinue its Turkish market IDDAA sportsbook contract with telecoms giant Turkcell. The loss of this contract combined with the devaluation of its Greek OPAP systems management contract (-€10m) sees Intralot record a 19% YTD EBITDA decline of €79 million (YTD2018: €99m).

Group Chairman & CEO Sokratis Kokkalis stated: “In 3Q 2019 we continued to progress on our strategy to mitigate the impact of contract losses by means of our three-prong strategy of cost-reductions, winning new business, and the disposal of non-core assets.

“We are particularly satisfied about the award of a new US Sports Betting contract for the Lottery of New Hampshire which is an important step for our growth strategy in the US, and the successful sale of our stake in the Italian Sports Betting operator Gamenet for a total consideration of €78.0m, that will offer a strong boost to our cash position and a reduction of our net debt in the FY2019 results.”