Full year results 2020

Intralot records 2020 revenue decrease as profits also fall

| By Nosa Omoigui
Greek lottery operator Intralot has reported gross gaming revenue (GGR) of €292.9m (£252.7m/$351.4m) for 2020 - a 14.0% decrease from 2019.
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Overall turnover (amounts wagered for B2C in addition to revenue from B2B and B2G deals) generated for 2020 was €364.8m, down by 16.6%.

Turnover generated from Europe and the Americas increased – Europe up 56.2% to €30.3m and Americas up 11.0% to €29.3m – while turnover from other countries fell by 45.2% to €34.7m.

Lottery games comprised 60.6% of the overall turnover, totaling €221.1m. IT products and services contributed €59.5m, whilst sports betting brought in €54.0m.

Most of this turnover was from B2B tech and and management contracts, and the majority of Intralot’s decline in turnover was due to declines in these verticals too.

A total of €19.3bn was wagered worldwide using Intralot’s products and systems – a 1.9% increase year on year.

The total amount wagered from Intralot’s licensed B2C operations amounted to €119.8m, which represents a 24.9% decrease on 2019. The company sites the reason for the decrease as Covid-19’s negative impact in key markets such as Argentina and Brazil, where it led to a €21.4m decrease, and Malta (an €18.3m decrease).

Revenue from management contracts also fell by 51.8% to €33.5m, mainly due to a €24.0m deficit in the company’s business in Turkey.

Revenue from technology and support services rose by 1.5% to €211.5m thanks largely to strong performances from US operations, including merchandise sales in Illinois, general lottery performances and a successful project in Canada with the British Columbia Lottery Corporation (BCLC).

Costs of sales – including betting winnings – came to €289.5m, with a further €102.0m costing the company in expenses; selling expenses were €23.7m, administrative expenses cost €73.3m, research and development cost €2.9m, and other expenses came to €2.1m.

Gross profit was down by 20.1% to €75.3m with EBITDA coming to €66.2m.

Overall losses after tax came to €106.2m – a 1.9% decrease from 2020.

Intralot chairman and CEO Sokratis P. Kokkalis said: “During the financial year 2020 we faced the adverse effects and disruptions of the COVID-19 pandemic, which had significant impact on the Lottery and Sports Betting industries. This impact was only partially offset by mitigation measures, operational improvements, and cost-containment efforts.

“We remained focused on developed markets seeing significant growth in the US in the Lottery operations and we launched two new Sports Betting operations in Montana and Washington D.C., while we renewed significant contracts in Georgia, US as well as New Zealand, Australia and The Netherlands.

“The Company management also dedicated significant effort in negotiations with the bondholders to optimize the Capital Structure through a transaction that is expected to be completed during the first half of 2021.”

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