Intralot revenue down despite sales increase

Intralot revenue down despite sales increase

Thursday, May 19, 2016 Totally Gaming
Antonios Kerastaris backed his company's strategy after releasing its Q1 results

Intralot suffered a drop in revenues but an increase in earnings as currency volatility and poor sales in its Australasia region affected first-quarter results.

In a trading update, the lottery and gaming operator said consolidated revenue in the three months to March 31was down four per cent year-on-year to €335.2m ($375.7m). On a constant currency basis, revenue totalled €377.7m, up nine per cent. Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the period totalled €47.3m, reflecting a six-per-cent increase compared to Q1 2015.

Intralot said the decrease in revenue was mainly attributable to a €29.1m drop in Australasia due to poor sales in Azerbaijan, as well as currency devaluation in the same country last February and December. Revenue in South America was down €5.2m due to softer sales in Jamaica, Argentina and Brazil, although this was partially counterbalanced by increased sales in Peru. Intralot’s East Europe revenue was up €15.8m thanks to a strong performance in Bulgaria.

The company said that Intralot systems handled €6.9bn of wagers worldwide during the period, which was an increase of three per cent year-on-year.

"Intralot’s strong financial performance in 1Q16, despite strong FX headwind, confirms that our operational model evolution and the alignment of our portfolio offering with market trends generate measurable results,” said chief executive Antonios Kerastaris.

“Our strategy for growth through local partnerships in new and existing markets is guided by expanding and diversifying our portfolio with complementary products and market share.

“Additionally, our unique understanding of traditional industry verticals such as lottery and betting retail as both technology provider and operator drives our new product roadmap towards a universal customer experience."

TotallyGaming.com says: “Having signed a series of agreements over recent months, and with its deal in Italy with Gamenet set to be concluded in June, Intralot seems to be positive about its strategy, despite its exposure to what Kerastaris called currency exchange “headwinds”.”

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