Intralot announces revenue rise alongside drop in profits

lier Intralot has revealed revenue and EBITDA growth for 2015, although gross profit and earnings before tax are both down.

Revenue rose 3.3% year-on-year to €1.91bn, boosted in particular by a "strong performance" in Jamaica, Argentina and Peru.

The increase was equivalent to 4.2% on a like-for-like basis, excluding discontinued businesses.

Sports betting contributed 47.2% of revenue, followed by numerical games with 31.3%, VLTs/AWPs with 11.1%, technology contracts with 7.6% and racing with 2.8%.

Gross profit fell 3.2% to €261.6m, while EBITDA increased 1% to €177.2m, or 13.6% on a like-for-like basis.

EBT fell 29.5% to €25.7m, negatively affected by an increase in depreciation of €10.9m and an increase in FX of €6.9m, partially counterbalanced by a net interest expense improvement of €7.7m.

On a like-for-like basis, yearly EBT was €18.8m, up from €-1.0m in 2014.

The firm announced EAT of €-65.1m, compared with €-49.5m in 2014.

On a like-for-like basis, yearly EAT was €-73.9m, compared with €-79.2m in 2014.

Net Debt as of 31 December 2015 was €477.6m, up from €381.4m on 31 December 2014.

For Q4 2015, revenue improved 2.2% to €535m, equivalent to 5.5% on a like-for-like basis, driven by the firm's performance in Italy, Jamaica, Bulgaria and Argentina, which was partially offset by results in Greece, Australia, USA and Brazil.

Gross profit suffered a 6.3% downturn to €71.9m, while EBITDA improved 3.5% to €45.3m, or 8% on a like-for-like basis.

EBT was down 16.3% to €7.8m, while EAT was reported as €-14.7m, compared with €-17.5m in Q4 2014.

On a like-for-like basis, EAT was €-20.4m, compared with €-23.0m in Q4 2014.

"Intralot's financial performance in 2015 confirms our resilience and growth potential in challenging times, marked by sustainable revenue and EBITDA, along with positive free cash flow in the last quarter of the year," said Group CEO Antonios Kerastaris.

"Going forward we expect accelerating revenue and EBITDA growth, propelled by a healthy pipeline of new contracts coupled by an operating model that focuses on cash flow generation through a rationalisation of our cost base and balance sheet structure.

"Overall, we remain committed to transforming Intralot from a project-based company to a products and services gaming specialist."