Listed in Athens Intralot SA has released its financial results for the 2020 fiscal year, which show a nearly 17 percent drop in sales as a result of the COVID-19 pandemic, which had a major effect on the lottery and sports betting industries.
Intralot reported €364.8 million in sales for the fiscal year that ended on December 31, 2020, down 16.6 percent from €437.3 million in FY19.
Lottery Games contributed the most, accounting for 60.6 percent of overall sales, followed by Technology Contracts, which contributed 16.3 percent. Sports betting accounted for 14.8 percent of overall sales, VLTs for 7.6 percent, and horse racing for 0.7 percent.
The company posted €292.9 million in gross gaming revenue (GGR) from continuing operations in FY20, down 14 percent from €340.5 million in FY19.
Intralot’s EBITDA was unchanged in FY20, at €66.2 million, up 2.5 percent from €64.6 million the previous year, while adjusted EBITDA was €55.8 million, up 5.9 percent from €52.7 million in 2019. Its pandemic effects estimate for 2020 is in the neighbourhood of €25 million of EBITDA.
Adverse effects and disruptions
Sokratis P Kokkalis, Chairman and CEO, said: “During the financial year 2020, we faced the adverse effects and disruptions of the COVID-19 pandemic, which had a significant impact on the lottery and sports betting industries. This impact was only partially offset by mitigation measures, operational improvements, and cost-containment efforts.
“We remained focused on developed markets seeing significant growth in the US in the Lottery operations and we launched two new Sports Betting operations in Montana and Washington DC, while we renewed significant contracts in Georgia, US as well as New Zealand, Australia and The Netherlands.
“The company management also dedicated significant effort in negotiations with the bondholders to optimize the capital structure through a transaction that is expected to be completed during the first half of 2021.”
Intralot posted €-104.1 million in net income after tax and minority interest (NIATMI) from ongoing operations, up 1.2 percent from €-105.4 million in FY19.
North American operations
Intralot Inc, the group’s North American operations, saw significant year-over-year growth, with sales up 22.3 percent and EBITDA up 62.1 percent.
Intralot’s Group OPEX improved by 21.5 percent year over year in FY20, while Greek entities’ OPEX decreased by 7 percent year over year, excluding capital structure optimisation expenses. Group net CAPEX was €36 million, down 34.5 percent from a year earlier, while group cash was €100 million and net debt was €651.1 million.
Intralot completed the sale of its entire 20 percent interest in Intralot de Peru SA in early 2021, with a net cash consideration of $16.2 million after taxes and transaction expenses. It also extended its current contract with Intralot de Peru SA for another three years, until 2024, to continue providing gaming technology and support services.
Intralot recorded overall sales of €107.4 million in Q4 2020, up 3.8 percent year over year (2019: €103.5 million), a GGR of €86 million, up 11.5 percent year over year (2019: €77.1 million), an EBITDA of €20.7 million (2019: €4.7 million), and an NIATMI of €-42.9 million (2019: €-53.1 million).
Increased revenue for the quarter was largely due to improved lottery results in the United States, as well as the slow take-up of its latest US sports betting contracts, equipment sales in BCLC/Canada, Illinois, and the Netherlands, and Bilyoner’s improved performance, which was aided by the strong growth of the online market.
However, the ongoing COVID-19 effect in most of its main regions, as well as revised commercial terms in Morocco and the Netherlands, offset this change.