Intralot, a leading provider of gaming and lottery solutions, recently released its Q1 financial results. While the company experienced an 8% year-on-year decrease in revenue, several positive indicators emerged, including a substantial increase in EBITDA, a turnaround in net income, a reduction in net debt, and notable growth in the US market.
Revenue Breakdown:
Lottery games remain the primary source of revenue for Intralot, accounting for 60.4% of the group’s turnover. Sports betting follows with a share of 17.5%, while VLTs monitoring contributes 12.5%. Technology contracts represent 9.5% of the revenue, and racing rounds up the list with a share of 0.1%.
Financial Performance:
Despite the overall decrease in group revenue, Intralot’s Q1 financials present encouraging signs. EBITDA increased by 29%, reaching €33.7 million, reflecting improved operational efficiency. Net income after tax and minority interest (NIATMI) demonstrated a significant improvement, shifting from -€5.7 million a year ago to €3.1 million in the current quarter. Net debt also decreased by 6%, falling from €500.6 million to €471.6 million, indicating a more favorable financial position.
Positive Momentum in the US Market:
Intralot’s US operations showcased remarkable growth during the first quarter. Revenue from the US market increased by 13%, underscoring the company’s expansion efforts in this key region. Furthermore, EBITDA for the US operations witnessed an impressive rise of 32%, highlighting the successful execution of Intralot’s strategies in this market.
Operating Cash Flow and Leverage Ratio:
Operating cash flow experienced substantial growth, surging by 115% to €37.2 million. This improvement indicates Intralot’s strengthened ability to generate cash internally and reinvest in its operations. Additionally, the group’s bet leverage ratio decreased to 3.6x, demonstrating a reduction in financial risk and improved capital structure.
CEO’s Outlook:
Sokratis P. Kokkalis, Chairman & CEO of Intralot, expressed pride in the company’s robust organic EBITDA growth and return to net earnings. Kokkalis emphasized the positive impact of consistent efforts over the past few years, leading to Intralot’s successful turnaround story. He also highlighted the company’s focus on addressing upcoming maturities, enhancing the capital structure, and implementing an ambitious plan for strong and sustainable growth in the US and other key markets worldwide.
Intralot’s Q1 financial results reflect a mixed performance, with a decline in revenue but notable improvements in EBITDA, net income, and net debt reduction. The company’s US operations stood out as a growth driver, with revenue and EBITDA showing significant increases. The positive cash flow and reduced leverage ratio further contribute to Intralot’s successful turnaround narrative. With a strong focus on lottery digital transformation and expanding into new markets, Intralot aims to create value for all stakeholders and achieve sustained growth in the future.