Intralot SPA Outlines Troubling Trading Start

Intralot SPA has outlined a troubling trading start to 2020, citing significant declines in all key operating indicators and branches, as numerous novel headwinds have impeded its corporate turnaround programme.

The Athens-listed provider of gambling technology and lottery systems saw group turnover decline by 47 percent to €102 m (Q12019: €193 m) when publishing its Q1 2020 results.

The €90 m decline in turnover is primarily attributable to Intralot ‘s licenced B2C operations, which were forced to discontinue their Eurobet Bulgaria sportsbook contract from mid-February after being suspended by the Bulgarian Government.

Trading deficits related to the firm ‘s closure of its Turkish IDDAA sports betting unit during 2019 have further strained intralot performance.

Trading woes of the business sector were further exacerbated when lottery revenue plummeted by €66.4 m €15 percent owing to reductions in revenues reported in all core contracts.

Faced with multiple headwinds, Intralot saw net revenues for the group decline to €77 m, reflecting a decline of 30 percent over the corresponding €109 m for Q1 2019.

Despite reducing its operating costs by € 6 million (18 percent), Intralot recorded a 50 percent decrease in Q1 EBITDA to € 15 million (Q12019: € 30 million) – as period losses increased to €18 million (Q12019: – €13 million).

Intralot published a COVID-19 update in its statement, confirming it is monitoring developments reopening May. Currently, the distributor estimates that the pandemic impacts for trade in 2020 will be in the group-wide ‘EBITDA nearby of €25m.’

The trade statement also featured the debut address of Group CEO Christos Dimitriadis, who is responsible for leading the revival of the company’s main operating units.

“During the first quarter of the year, we have kept witnessing an increase in the handled wagers and an improvement of the performance of technology contracts in North America, demonstrating the dynamics of the region,” Dimitriadis said.

“Group revenue and EBITDA were mainly impacted by the regulatory changes in Bulgaria, the developments in Turkey and the impact of the pandemic in non-US jurisdictions.