On this revenue, the business reported net income of €11.9m, a 31.9% decrease from the €17.5m the company achieved in 2021.
Intralot’s net debt fell by €6.7m to €490.5m, standing now at 4.0x EBITDA, as opposed to the 4.5x that the company announced the previous year. The majority of the business’ debt is the result of Covid-era financing in which large parts of the company’s operations were unable to function.
The provider’s operating expenses rose 3.9% from €96.0m to €99.8m, which Intralot put down principally to a negative result of foreign exchange movements. In 2022, the dollar rose against the euro, increasing costs for the business’ US operations. Intralot said that this movement offset other cost savings at the company’s head office.
Successful restructuring efforts
The business’ chairman and CEO, Sokratis P Kokkalis, framed the results as the consequence of successful restructuring efforts in 2021-22.
“Intralot’s 2022 financial year results reflect robust performance and continuous improvements in all key financial indicators as the company delivered on its main business goals and as a result of intense efforts for capital structure optimisation and management reorganisation to boost growth and efficiencies,” he said.
Kokkalis also pointed to the company’s 2022 €129m share capital raising as playing a key role in attracting US-based fund Standard General as a strategic investor. According to the executive, the proceeds from these activities was put towards regaining 100% control of the business’ US subsidiary Intralot Inc.
In the company’s 2022 Q3 financial report, the company outlined its long-term strategy, which involves the expansion of Intralot’s digital presence, particularly in North America. Subsequently, Kokkalis said that this growth would be the business’ priority, as well as repaying the company’s outstanding debt.
“In the light of our significantly improved position, we look forward to tapping new growth opportunities in the US and the rest of the world as one of the top gaming technology providers worldwide and working towards refinancing the 2024 notes.”
Outlook for the year
Intralot emphasised the challenging economic environment in its 2023 outlook, highlighting the continuing twin issues of inflationary pressure and central banks tightening interest rates. Intralot – which has significant debt – has been particularly affected by the changing interest rates regime. The business said it has had a “direct impact” on the company’s financial serving costs.
“The indirect effects on our group’s business activities from the flagging economic growth and the increase in operating expenses due to wage inflation pressures cannot be overlooked,” said the business. “The management of the company closely monitors geopolitical and economic developments and is ready to take all the necessary measures for protecting its operations.”