Greek lottery business Intralot’s revenue, gross gaming revenue and profit were all almost exactly flat year-over-year in the first quarter of 2022, with currency fluctuations offsetting most supplier growth.
Turnover – which is made up of all the revenue Intralot makes as a B2B supplier plus all the money staked with its B2C operation – amounted to 97.7 million euros. This was almost exactly the same level as the total recorded in the first quarter of 2021.
The company noted that 61.9% of revenue came from lotteries, 18.8% from sports betting, 11.2% from video lottery terminals, 7.7% from IT products and services and 0.5% from racing. .
On the B2B side, technology and support services brought in 55.1 million euros, up 1.3%, driven by higher revenues in Australia thanks to the easing of containment measures. Revenue from management contracts, on the other hand, fell by 18.3% to €10.9 million.
This, Intralot said, was almost entirely due to exchange rate impacts in Turkey, which is the largest market for Intralot’s management contract business.
Investments from B2C transactions represent €31.6 million of this total, up 6.1%. This, he said, was partly due to the growth of the local market in Argentina, as the city of Buenos Aires launched its igaming market. Revenue in the country is up 32.4% to €10.3 million. On the other hand, turnover in Malta is down by €600,000.
Intralot’s B2C business reported 17.8 million euros in earnings. As a result, gross gaming revenue from B2C operations amounted to €13.8 million, up 23.9%. Overall gross gaming revenue – including B2B activity – amounted to €79.8 million, up 1.2%.
In addition to these gains of €17.8 million, Intralot incurred an additional €54.6 million in other costs of sales, which means that its total cost of sales amounts to €72.5 million, an increase of 0.7%.
When these costs of sales, including earnings, were subtracted from the €97.7m of overall turnover, Intralot’s gross margin was €25.2m, a decrease of 1.6%.
The activity generated €5.7 million in other operating income, but also incurred €4.7 million in commercial costs and €16.6 million in administrative costs, as well as €417,000 in research and development and €305,000 of other operating expenses.
The company noted that 17.4 million euros of these costs were related to depreciation, which means that profit before tax on interest and depreciation amounted to 26.1 million euros, an increase by 4.8%.
Its earnings before interest and taxes, meanwhile, amounted to 8.7 million euros, up 123.1% due to lower depreciation and amortization charges in the first quarter of 2021.
Intralot then faced €10.3 million in interest and similar charges and €511,000 in foreign exchange losses, which contributed to a pre-tax loss of €2.3 million, or 17.9% less than the loss of Q1 2021.
After paying €2.6 million in taxes, up 22.8%, Intralot’s net loss amounted to €4,945, just €3 less than the loss recorded a year earlier.
Intralot’s Chief Executive Officer, Sokratis P. Kokkalis, said he was pleased with the results which showed continued progress on the supplier’s business plan.
“The first quarter results show consolidation of gains and recovery from the impact of Covid and reflect an improved financial profile, with normalized revenues and reduced operating expenses and debt service costs in line with the plan. business of the company,” he said.
As a result, he added, the company called a shareholders’ meeting to approve an increase in its share capital.
“Based on this strongly improving income statement and balance sheet, the company has designed and is about to launch a rights issue capital increase and secured the commitment of Sandard General Master Fund II as as an anchor investor for the unsubscribed rights in a move that will significantly enhance our chances of seizing the tremendous opportunities in the U.S. and global markets,” he said.