Intralot success highlights growth opportunities in South America

Intralot success highlights growth opportunities in South America

Friday, April 1, 2016 Totally Gaming

Intralot CEO Antonios Kerastaris is anticipating a “healthy pipeline of new contracts” after the lottery and gaming operator reported significant growth in Latin America in 2015.

Total sales in the 12 months through to the end of December amounted to €1.9bn ($2.2bn), up 3.3 per cent, or €61.7m, on the revenue posted in the previous year.

Revenue was significantly boosted by Intralot’s performance in Latin America, where the firm experienced year-on-year revenue growth of €103.3m. This growth helped to offset a €73.5m loss in the Australasia region, which Intralot put down to the sale of its Victorian licence, as well as softer sales in Azerbaijan.

“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,” Kerastaris said.

“New contracts and renewals in the US, the Netherlands, Morocco, Nigeria, and Kenya underscore our ability to sustain and grow our business through selected markets across the globe.

“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 cashflow generation through a rationalisation of our cost base and balance sheet structure.”

Intralot also reported that adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) came in at €177.2m, up one per cent on the total posted last year.

Higher payouts and loss of profits from discontinued businesses also led to a marginal drop in gross profit margin to 14.6 per cent.

TotallyGaming.com says:

Intralot has made a conscious effort to grow the business beyond its heartland in Greece in recent years, and these latest results show the fruits of spreading risk through such a diversification strategy. In a capricious industry, regulatory outlooks can alter suddenly in different markets, and Intralot’s significant presence in Latin America has helped to offset challenges in other regions. In October, the company further demonstrated its global outlook by striking a deal with International Lottery and Gaming Limited in the growing African market of Nigeria, providing further security against any potential future economic or financial headwinds.

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