Intralot year trading stunted by FX cuts and US slowdown

Intralot SA trading has been rocked by dire Q3 results, impacting all financial metrics of the Athens-listed gambling and lottery technology group.

Year-to-date (YTD) accounts show Intralot’s corporate revenues standing at €263 million, down 6% compared to corresponding 2023 results of €280 million.

The decline in headline revenues is attributed to “seasonal effects” and the impact of €13 million in negative FX fluctuations corresponding to commercial activities in Argentina.

Q3 trading saw Intralot report double-digit declines across all core metrics, with GGR dropping by 14% to €85 million (Q3 2023: €99 million) and EBITDA down by 16% to €32 million (Q3 2023: €38 million).

Providing a breakdown of units and key contracts, Intralot experienced an €11 million decline in Technology and Support Services revenue, primarily due to the absence of one-off sales from Taiwan recorded in the prior period, coupled with unfavourable exchange rates for the Argentine Peso and lower US sales stemming from the non-recurrence of a jackpot boost in 2023.

B2B/B2G Management contracts delivered mixed results, with a €3 million revenue increase driven by growth in Turkey, though this was partially offset by weaker performance in Morocco, where a renewed contract carried a reduced scope and value.

Licensed Operations (B2C) in Argentina saw revenues drop sharply by €9 million (-27%) due to foreign exchange headwinds, despite Intralot registering a 115% year-on-year increase in local currency terms.

Leadership highlighted ongoing challenges posed by global economic volatility, foreign exchange risks, and the slowdown in its key markets. However, the group expressed optimism about steady growth in Oceania, where organic revenue increased by 6%, offering a silver lining to its financial performance.

At the close of the year, Intralot’s YTD EBITDA stands at €92 million, reflecting a year-on-year decline of 9%.

However, management highlighted an improvement in operating profitability recorded in Q3, reaching €32 million, a 9% increase compared to €29 million recorded in the second quarter. The EBITDA margin for the period was 35%. Earnings Before Tax (EBT) for the nine months totalled €11 million.

Chairman Sokratis P. Kokkalis commented: “Group performance for the 9-month period in 2024 has been impacted by seasonality effects in the United States and FX movements. The company maintains its key metrics of profitability and leverage ratio within the targeted range, while extending existing contracts and participating through tender processes in a large number of projects around the world.”