INTRALOT boasts of high growth rates in mature markets

INTRALOT boasts of high growth rates in mature markets

Tuesday, September 6, 2016 Posted by Andy McCarron
Shuffling its international portfolio has helped INTRALOT become more competitive

Greek gambling giant INTRALOT believes it is fighting fit after a re-organisation has helped it compete in even the most competitive markets.

Driven by growth in business in the US, Turkey and Bulgaria, Intralot has recorded revenues of €639 million for the first half of the year, up from €618 million for the same period in 2015.

INTRALOT Group CEO Antonios Kerastaris was bullish when describing how the operator was making inroads. “We are particularly encouraged by high growth rates in mature markets such as the US as a clear sign of competitiveness gains and we are committed to further business development in North America and other promising regional markets such as Africa and East Asia.”

The second quarter of the year has been particularly buoyant for INTRALOT, no doubt helped by the Europ 2016 tournament. The firm reported significant EBITDA growth of 17.1% in 2Q16, pushing the half year EBITDA figures up 10.9%.

In a busy year so far for the gaming giant, the merger of its Italian activities with Gamenet was completed, the company reached an agreement with Nexus Group to sell 80% of INTRALOT de Peru and last month it revealed that it has entered into discussions with Tatts for a potential sale of INTRALOT’s Australian and New Zealand businesses.

The reorganisation hasn’t all been about outgoings though - in July 2016 the firm completed the acquisition of a strategic stake in a leading gaming company in Bulgaria, Eurobet.

Kerastaris added: “INTRALOT’s 2nd Quarter results reflect the impact of successful efforts in portfolio reorganization through a dynamic roadmap of new products and services and the geographical rebalancing of our presence, assisted by completed organisational changes and cost containment.”

Reported consolidated revenues increased by 13.3% to €331.9m in Q2 compared to the same period a year ago, boosting H1 revenues up by 2.9%

The company explained that the increase in 1H16 derives from: +€63.9m in East Europe due to increased sales in Bulgaria and Turkey, +€19.3m in North America, +€1.5m in Africa and +€0.3m in West Europe, partially counterbalanced by decreased sales of €43.7m in Australasia due to lower sales in Azerbaijan where the local currency suffered severe devaluations last February and December and -€23.3m in Soguth America due to softer sales in Jamaica, Argentina and Peru.

Totally Gaming Says: The early signs suggest that INTRALOT is fighting fit after shuffling its international deck and an increase in revenues in extremely competitive markets suggest that the company has a winning approach. Given Numis Securities’ recent praise for geographic cover, it’s fair to say INTRALOT is in one of the leading positions for global diversification.

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