Intralot SPA has declared a ‘steady first-half of year’ as group leadership continues to monitor drastically changing economic and political dynamics impacting the value chain of its global business.
Publishing its interim H1 2022 trading statement, the Athens-listed gambling and lottery technology group reported corporate revenues of €205m (H1 2021: €203m).
A breakdown of product performance saw Intralot’s Lottery services remain as the largest revenue contributor, providing 64% of H1 revenues, followed by Sports Betting at 15% and VLTs 11.2%.
Period trading reflected fluctuating fortunes across key markets of its core business units of Licensed Operations (B2C), Technology Contracts and Managed B2B Services.
In Argentina, Licensed Operations achieved a 46% increase in income to €7m. Unit performance, however, was slowed by a €3m sales decline recorded in Malta.
Managed B2B Services registered a loss of €2.5m, as revenues generated from its Turkish Bilyoner contract were compounded by a 50% decline in Turkish LIRA against the euro.
Reflecting market trends, Intralot Technology Contracts achieved respective income growth in Australia and Croatia of €2.1m and €1.5m.
However, positive Technology Contracts results dwindled to €700,000 due to the US INC division recording a €5.9m loss.
The group’s consolidated statement saw period trading account for a €4m increase in corporate expenses to €49.5m (H12021: €45.5m).
Intralot continues to benefit from reorganizational proficiencies that saw the company register a H1 EBT of €8m, reversing like-for-like 2021 losses of €10m.
The positive earnings results reflect significantly lowered interest repayments paid on the group’s debt, and the absence of impairment costs and write-offs during H1 trading.
Providing a business outlook, Intralot Chairman and CEO Sokratis Kokkalis stated that the company had been further strengthened by a share capital increase of €129m.
Kokkalis and the firm’s executive management continue to monitor changing macroeconomic developments. A statement read: “The geopolitical tension arising from the war in Ukraine coupled with the energy crisis, the supply chain disruptions and the rising inflation are factors that are expected to determine the economic outlook over the coming months.
“Our group does not have direct exposure in terms of operations or dependency on suppliers in Ukraine and Russia. However, the risk of indirect effects on the group’s business activities from the reduction in the household disposable income and the possible increase in operating expenses due to inflationary pressures cannot be overlooked.
“The management of the company monitors the geopolitical and economic developments on a constant basis and is ready to take all the necessary measures for protecting its operations.”