Intralot returns to profit in 2021 as revenue grows in all divsions

| By Marese O'Hagan
Intralot's net profit came to €32.7m in its full-year results ended 31 December 2021, after the business made a loss the year before, as turnover and GGR increased across the board.

Turnover for the year amounted to €414m, up 20% from 2020. This consists of all the revenue Intralot made as a B2B supplier through its supplier business, as well as all the stakes that players wagered through the business as a B2C operator.

Technology and support services made up €233.5m of the turnover, a rise of 10.4% year-on-year.

This was attributed to an increase in top-line contributions from the company’s US operations, as well as improved performances in Morocco and Intralot’s online gaming company Bilyoner, which it acquired in 2013.

Turnover from its licensed B2C operations increased by 33.3% to €133.1m, while management contracts made up the remaining €47.5m in turnover- up 41.3%.

The gross gaming revenue (GGR) for the year amounted to €335.3m. This was up by 17.4%.

The GGR consists of the €281.0m revenue Intralot made as a B2B business, plus its gross gaming revenue from licensed B2C operations. GGR from licensed operations rose by 26.9% year-on-year to €49.6m. This increase was down to comparisons being affect by Covid-19 pandemic in 2020, though some of this growth was mitigated by low margins in Malta and higher foreign exchange impact from Intralot’s operations in Latin America.

The total cost of sales was €294.5m, 8.3% more than in 2020. This figure includes player winnings from licensed B2C operations, as well as other costs of sales such as commission.

These costs of sales were then subtracted from turnover, rather than GGR, leaving gross profit at €119.4m, up 63.3% year-on-year.

Other expenses, including selling costs, administrative costs and reorganisation costs, amounted to €118.8m. Some of this was offset by other operating income, however, which came to €21.6m.

This left earnings before interest and tax at €22.2m, up by €30.7m year-on-year after a loss in 2020.

Following income at €45.1m and interest-related expenses at €78.4m, the profit before tax was €37.1m.

After a tax bill of €4.3m, the net profit from continuing operations came to €32.7m, up by €131.9m after a loss of nearly €100m the year before.

Sokratis P. Kokkalis, chairman and CEO of Intralot, explained that Intralot’s capital structure optimisation – in which the business renegotiated and restructured many of its debts to noteholders – helped pave the way for further future growth.

“The successful completion of the capital structure optimisation in August 2021, resulting in the extension of the 2021 maturities and the significant deleverage by €163m has been a key milestone for Intralot, providing us the runway to address significant opportunities in the US and worldwide in the coming years in the lottery, sports betting and monitoring areas,” said Kokkalis.

“Coupled with strong rebound in key markets after the easing of Covid-19 pandemic measures and cost-efficiencies achieved at HQ level, FY2021 results set the company in a stable course to tap on new opportunities and create value for all its stakeholders.”

Earnings before interest, tax, depreciation and amortisation (EBITDA) were €110.4m, a rise of 66.8%.

Earlier this month Intralot extended its existing deal with the Wyoming lottery by five years.

Last month Intralot extended its partnership with Moroccan operator La Marocaine Des Jeux et des Sports.

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