Intralot has published its financial results for the six-months ended June 30, 2020, with US growth one of only a few highlights for the lottery and gaming solutions provider in an otherwise tough trading period.
The firm’s US operations recorded a welcome increase in revenue of $9m, mainly driven by the higher contribution of its new contract in Illinois in the current period (project launched in mid-February 2019) and a one-off revenue recognition in relation to its new project with British Columbia Lottery Corporation in Canada.
A one-off equipment sale in Ohio fully absorbed the impact of the firm’s Ohio CSP contract termination as well as the effects of COVID-19 and a Powerball jackpot occurrence in Q1 2019. The firm also noted that performance was in part boosted by favorable USD movement.
Looking at the broader financial picture, reported consolidated revenue for H1 2020 was $199.1m (-55.5% H1 2019). Lottery games provided the biggest contribution to the firm’s top line, comprising 65.3% of revenue, followed by technology contracts which contributed 14.3% to group turnover. Sports Betting accounted for 11.5% and VLTs represented 8.3% of group turnover, while racing constituted 0.6% of total revenue in the first half of 2020.
Gross gaming revenue (GGR) from continuing operations saw a decrease of 38.8% (or $100.4m) year-on-year, driven by a drop in the firm’s payout-related GGR (-67.1% year-on-year or $54.2m). Intralot also blamed recent developments in Bulgaria (- 74.9% year-on-year on wagers from licensed operations ) for GGR decline.
H1 EBITDA from continuing operations came in at $31.6m, a decrease of 54.5% ($37.9m) year-on-year.
Group CEO Christos K Dimitriadis, updating investors, said: “During the first half of 2020 we have navigated through the COVID-19 pandemic as well as the effect of discontinued operations in Bulgaria and Turkey.
“We have revisited our strategy, accelerated its execution, reorganized the group, gave priority to our customers and to our people, addressed our financials with prudency, diversified our portfolio even further, ensured continuity in service provision and identified ways to unlock the hidden potential of our digital technology.
“As a result, we have achieved significant growth in our US operation, substantial reduction of the group’s OPEX and CAPEX and maintenance of strong liquidity levels. Most importantly we are continuously being prepared for the future and the new realities that are being established worldwide.”