Intralot SPA Group Chairman & CEO Sokratis Kokkalis has confirmed that the Athens-listed gambling technology firm will undertake a full-scale operating review and cost reduction plan, following a year of corporate declines witnessed across all Intralot business verticals.
Publishing its full-year 2018 results, Intralot records a -6.4% decline in group revenues to €870 million (FY2017: €930m), as governance reports diminishing growth across its core business segments of Licensed Operations (-3.5%), Game Management (-9%) and Technology Contracts (-12%).
Adding further woes to the Greek gambling group’s 2018 performance, Intralot earnings would be impacted by severe FX declines against the € recorded across its Argentine and Turkish units, resulting in a 23% EBITDA decline to €116 million (FY2017: €151m).
Further operating concerns see Intralot governance report slowdowns in revenue performance across the jurisdictions of Greece, USA, Australia and Argentina.
Despite the operating declines, Intralot governance was able to narrow 2018 net losses to -€25 million (FY2017: -€58m). Nevertheless, closing a turbulent 2018, Intralot records further corporate declines in key metrics with regards to operating cashflow reduced to €88 million (€118m), and corporate net-debt increased to €615 million (FY2017: €510m).
Retaking day-to-day leadership of Intralot this March, majority shareholder and company founder Sokratis Kokkalis has begun to implement a corporate restructure, following Intralot’s costly loss of exclusive Turkish tender servicing betting monopoly IDDAA.
Updating the market, CEO Sokratis Kokkalis detailed – “The reported revenue and earnings contraction during 2018 points to the need for a wide reorganisation of our production and operational capabilities towards significant cost reductions and operational efficiencies. This is why we recently conducted a management reshuffle in order to design and implement a new cost-reduction plan through better synergies between divisions and between headquarters and subsidiaries. I am personally committed and focused on our mission to best address the needs of our clients and to improve the cash flow generation of our business through a combination of new business and organic growth opportunities, coupled with cost optimisation, while continuing divestment from non-core assets when market conditions are favourable.”