Intralot reports 28.5% GGR rise in H1 2021 results

| By Marese O'Hagan
Greek gaming operator and supplier Intralot has reported gross gaming revenue (GGR) of €163.9m in its H1 2021 results, a rise of 28.5% year-on-year.

GGR included €21.0m from licensed B2C activities, up by 52.2%. Malta revenue contributed €15.4m of this, while Argentina operations made up the remaining €5.6m. accounts for the amount wagered and the amount paid out to winners.

The remaining €142.9m of GGR came from B2B and B2G activities.

Turnover, which is the revenue from B2B and B2G deals along with the total amount wagered for B2C operations, amounted to €202.6m. This was a rise of 34.4% compared to H1 2020, a period affected by the novel coronavirus (Covid-19) pandemic.

Technology and support services made up a majority of the turnover at €117.2m, an increase of 18.7% year-on-year. Turnover from management contracts totaled at €24.2m, a sizable increase of 105.1% yearly, while licensed operation turnover came to €61.2m.

Lottery games contributed the most to revenue with €120.1m, followed by sports betting at €37.0m. Meanwhile, technology contracts made up €24.7m, while video lottery terminals contributed €19.2m. Finally, racing constituted €1.0m.

The business then paid cost of sales, which included the amount paid out on winning wagers, of €144.9m. This was a rise of 18.3% year-on-year. This left the gross profit at €57.6m, a significant rise of 103.6%.

Administrative expenses amounted to €30.4m, and selling expenses came to €11.5m. Re-organisation expenses totaled at €11.1m, while other operating expenses and research costs came out at €2.6m and €860,000 respectively. After considering €10.2m in operating income, the total earnings before interest and taxes (EBIT) was €11.2m, a rise of €22.0m compared to a €10.8m EBITDA loss in H1 2021.

Interest and similar expenses, at €24.4m, and asset disposal loss at €3.3m affected the total further. However, Intralot also saw gains from several non-operating avenues, including investment income and foreign exchange differences, of €2.0m and €2.8m respectively. A further gain of €1.2m was made up of equity method consolidations and interest income.

In total, the operating loss from continued operations after €3.9m in tax amounted to €14.2m. After a €9.2m loss from discontinued operations, the total net loss for H1 was €23.5m, a decrease of 44.8% year-on-year.
Just before the H1 period ended, Intralot completed the sale of its Brazilian business, which made up much of the discontinued operations.

Intralot also experienced a rise in GGR and fall in net loss in its Q1 results.

Yesterday, a District of Columbia audit into GamBet – the DC Lottery’s sportsbook product which is operated by Intralot – found that the product had underperformed after its launch. It recommended lower margins and a renegotiation of the Lottery’s deal with Intralot.

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