**Intralot SA Faces Financial Challenges Following Q3 Results**
Intralot SA, a prominent name in the Athens-based gambling and lottery technology industry, has encountered difficulties due to disappointing third-quarter results, affecting all its financial indicators.
By the end of the year, Intralot’s revenue reached €263 million, marking a 6% drop from the €280 million recorded for the same period in 2023. This revenue decrease is largely attributed to “seasonal effects” and a €13 million negative impact from unfavorable currency exchanges related to business activities in Argentina.
In the third quarter, the company reported substantial declines in its primary financial metrics. Gross Gaming Revenue (GGR) fell by 14%, bringing in €85 million compared to €99 million in Q3 2023. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also declined by 16%, totaling €32 million from the previous €38 million.
Breaking down various units and essential contracts, Intralot faced an €11 million drop in Technology and Support Services revenue. This was due to the absence of one-time sales from Taiwan the previous year, unfavorable exchange rates affecting the Argentine Peso, and reduced US sales following a non-repetitive jackpot surge in 2023.
Management contracts in the B2B/B2G division showed mixed outcomes. Revenue grew by €3 million, spurred by expansion in Turkey. However, this was partially negated by underperformance in Morocco, where a renewed contract featured a reduced scope and value.
In Argentina, the Licensed Operations (B2C) sector saw revenues plummet by €9 million (a 27% decline) due to currency exchange challenges, despite a remarkable 115% increase in local currency revenue year-on-year.
Leadership acknowledged ongoing global economic instability, currency exchange hazards, and slowdowns in critical markets. Nonetheless, they were optimistic about potential growth in Oceania, where organic revenue climbed by 6%, offering some hope for the group’s finances.
By the end of the year, Intralot’s EBITDA stood at €92 million, reflecting a 9% decline year-on-year. However, management pointed out an uptick in operating profitability in Q3, reaching €32 million—a 9% rise from the €29 million logged in the second quarter. The EBITDA margin for this period was 35%, with total Earnings Before Tax (EBT) hitting €11 million for the first nine months.
Chairman Sokratis P. Kokkalis stated, “The group’s performance for the first nine months of 2024 has been influenced by seasonal effects in the United States and currency fluctuations. Nevertheless, the company sustains its key profitability and leverage metrics within the target range, while extending current contracts and engaging in numerous projects worldwide through tender processes.”
