Greek lottery and betting provider Intralot continues to spill red ink despite the loss of several big contracts and a much-deduced presence of US sports betting.
Figures released Friday show Intralot produced revenue of € 168.2 million over the six months ending June 30, a decrease of 55.5 percent from the first half of 2019. The gross profit plunged 60 percent to €30.6 million, profits slipped 54.5 percent to €26.7 million and the company reported a net loss of €42.6 million compared to a comparatively paltry loss of €13.7 million in the previous year.
Intralot blamed the downturn on the suspension of its Bulgarian client’s operations this spring, the loss of a big Turkish contract in 2019, Chile’s social turmoil and the overall negative effect of the COVID-19 pandemic on retail operations and major league sports. The net loss came amid substantial reductions in operating expenditures, including a reduction in selling costs of 44 per cent.
Intralot was keen to move the spotlight to its US-facing activities, which saw sales grow by 15.2 percent to €62.2 million (though sales dropped by 13.2 percent to €88.7 million in the broader ‘Americas’ segment). However, the US gains were primarily due to a new Illinois lottery deal, rather than the burgeoning sports betting activities of the company.
In May, the Montana Lottery released its betting product Intralot-powered Sports Bet Montana, which stumbled out of the gate due to the pandemic halt to most sports operations. The Intralot offering had produced total betting handle of just $3.75 m by the end of August.
Later that month, the infamous intralot-powered GamBet online sports betting app from the District of Columbia made its debut due to the costly betting lines of the system to near universal disdain. The lousy odds mean that when there are too many fiscally superior internationally licenced alternatives, the product has almost no chance to ‘route’ the punters to the locally approved alternative.
Intralot is expected to launch Sports 603, another retail betting app in New Hampshire associated with a lottery, sometime before the end of the year. But, given that the limited offer of Intralot would contend with the digital wagering commodity of DraftKings, don’t expect this deal to rescue the bottom line of Intralot any time soon.
Despite its limited betting presence in the US, Intralot signed on as Major League Baseball ‘s Approved Gaming Operator in July, allowing the company to show MLB trademarks in items that few bettors will ever see.
Looking ahead to H2, Intralot expects to boost its overall picture owing, in part, to some new product launches and “recovery from the pandemic of a number of operations,” which is a degree of confidence that most medical professionals are unable to recognise.