Global headwinds continue to mount for Intralot SPA, as its corporate performance is severely impacted by the compound effects of the loss of key technology contracts and COVID-19 constraints recorded across all operating markets.
Publishing its H1 2020 interim statement (period ending 30 June), Intralot declared group operating losses (NIATMI) of €42.9m, up 39% on corresponding H1 2019’s €31m.
Recording double-digit declines across all key business segments, the Athens-listed gambling technology and lottery systems provider saw its interim group revenues drop by 55% to €168m (H12019: €378m).
As previously disclosed in its Q1 trading statement, Intralot outlined that’s its ‘B2C licensed operations’ have been abruptly impacted by the cancellation of its Eurobet Bulgaria sportsbook contract from mid-February onwards, resulting in €140m deficit in corporate revenues.
Meanwhile, the Athens gambling group continues to absorb significant trading deficits (-€23m revenues) related to the loss of its Turkish IDDAA sports betting unit back in August 2019, the firm’s biggest technology partnership which has yet to be replaced.
The COVID-19 global lockdown further compounded Intralot’s performance as the gambling group recorded steep lottery and technology sales declines across its markets of Morocco (-73%), South America (-47%) and Western Europe (-29%).
Implementing tighter cost controls (lowering advertising + minimising Bulgarian spend), Intralot lowered group operating costs by €18m as the group net debt stands at €623m, less than €29.3m on 2019 results.
Closing its statement, Intralot underlined that corporate governance was monitoring all data and variables related to COVID-19 and how the global pandemic will impact and reshape the firm’s ongoing corporate recovery strategy.
Intralot Group CEO Christos K. Dimitriadis noted: “During the first half of 2020 we have navigated through the COVID-19 pandemic as well as the effect of discontinued operations in Bulgaria and Turkey.
“We have revisited our strategy, accelerated its execution, reorganized the Group, gave priority to our customers and to our people, addressed our financials with prudency, diversified our portfolio even further, ensured continuity in service provision and identified ways to unlock the hidden potential of our digital technology.”