Q1 results 2021

Intralot sees GGR rise to €80.5m while net loss falls in Q1

| By Marese O'Hagan
Greek gaming and lotteries operator and supplier Intralot saw a gross gaming revenue (GGR) of €80.5m (£69.4/$98.06) in its first quarter of 2021, an 8.44% increase year on year, helping it reduce its loss.

The GGR was generated from an overall turnover of €102.0m, which increased by 9.2% compared to the previous first quarter. The €21.4m difference between the GGR and turnover is due to the inclusion of the amount wagered for Intralot’s licensed B2C operations in its turnover.

The licensed operations, or B2C, made up €34.2m of the turnover, a year on year increase of 3.8%. Revenue from this segment, meanwhile, came to €12.8m.

Management contracts made up the smallest amount of the turnover at €13.3m, but this was a year-on-year rise of 66.0%.

Technology and support services brought in the largest portion of the turnover at €54.3m, an increase of 3.9%.

In terms of game types, lottery games led the way this quarter, bringing in 63.0% of the overall gaming turnover. Sports betting made up 19.1%, while both video lottery terminals and IT products and services made up 8.7%, a combined 17.4% of the amount. Racing accounted for 0.5% of the total turnover.

The Americas led the way in geographical turnover, amounting for €55.0m of the €102.0m total consolidated sales. This was an increase of 10.6% year on year.

Conversely, Europe suffered a drop of 11.7% in turnover, coming in at €34.4m. A combination of other countries made a total of €16.8m this quarter, a rise of 20.0%.

However, expenses affected the overall profit. Costs of sales knocked €75.8m from the 102.0m turnover total, leaving gross profit at €26.1m, a rise of 37.0%. The total cost of sales also includes the €21.4m betting winnings from the licensed B2C segment.

Other operating income added €5.5m to the total, but selling expenses of €6.6m brought earnings back down. Administrative expenses at €15.1m and research and development expenses at €456,000, a €2.3m and €199,000 increase respectively, further decreased earnings. Final considerations of reorganisation expenses at €5.0m and other operating expenses at €979,000 brought the total earnings before interest and tax (EBIT) to €3.4m, compared to a €2.9m loss in 2020.
Interest and similar expenses costed €12.1m. However, investment income, interest income and foreign exchange differences reduced losses by €4.1m. With the addition of €70,000 in profit from businesses in which Intralot does not have a controlling stake and, the total operating loss before tax totaled at €3.4m, down 77.1%.

Tax, costing €2.1m, brought the overall net profit loss to €5.5m, which was an increase of 67.0% year on year.

The total earnings before interest, tax, depreciation and amortisation (EBITDA )came to €24.4m.

Further, Intralot recorded a loss of €882,000 for discontinued operations, an decrease of €908,000 year on year. This, plus the loss of €5.5m from continuing operations, brought the total loss after tax to €6.4m. This was a increase of almost €10m year on year.

The discontinued business total involves Intralot Peru, which the business sold in February, following several deal extensions with different clients.

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