Leading gambling operator and supplier of technology and related solutions INTRALOT SA reported today its financial results for the quarter ended March 31, 2016. Consolidated revenue was down 3.6% year-on-year to €335.2 million. On a constant currency basis and excluding the negative FX effects, revenue totaled €377.7 million, up 8.6% as compared to the figure reported for the same quarter of 2015.
The decrease was mainly attributed to the company’s performance in Australasia and to be more precise, due to lower than expected sales in Azerbaijan. In addition, results in South America were also not satisfactory. The company said that sales in Argentina, Brazil, and Jamaica were relatively soft. Yet, the revenue drop was partially offset by an increase in Peru, Bulgaria, Western Europe, North America, and Africa sales.
Numerical games offering was the largest contributor to the overall revenue figure. Proceeds from those particular products accounted for 46.9% of the total turnover generated during the quarter. Sports betting represented 38.4%. Technology contributed 9.4% to the overall figure. Revenue from video lottery terminals and other gaming machines accounted for 3%, followed by proceeds from racing products with 2.3%.
During the three months ended March 31, 2016, INTRALOT handled a total of €6.9 billion in wagers from all around the world, up 2.7% year-on-year.
EBITDA for the period totaled €47.3 million, reflecting a 5.6% increase as compared to what was posted for the same quarter of the previous year. EBT amounted to €11.8 million, down from the €22.7 million generated in 2015. INTRALOT reported operating cash flow of €41.2 million, up 56.6% year-on-year. Gross profit margin stood at 19.4%.
Commenting on the reported figures, Antonios Kerastaris, CEO of INTRALOT, said that despite the strong FX headwind, the evolution road the company has undertaken for its operational model and the alignment of its product offering with the current gambling market trends brought in reasonable results. Mr. Kerastaris further noted that their growth strategy through local agreements with existing and new markets is further led by the expansion and diversification of their portfolio.
Earlier this year, INTRALOT signed an agreement to merge its Italian operations with Gamenet’s. Under the terms of the said agreement, INTRALOT would receive a 20% share in the combined entity. The transaction is expected to be concluded sometime in June. Including revenue from Italy, the group’s overall turnover would have amounted to €499.5 million, remaining flat as compared to what was reported for the first quarter of 2015.
