Intralot banks on US to drive 2019-20 growth
Greek lotteries and gaming solutions provider Intralot will focus its efforts on pursuing opportunities in the US market to help drive growth in 2019-20.
Speaking at the Intralot Annual General Shareholder Assembly this week, group chairman and chief executive, Sokratis Kokkalis, cited legal sports betting as a major opportunity for the business in the US.
Intralot has recently appointed a new board of directors for its US-facing Intralot Inc subsidiary to supports is growth plans in the US, where the legal sports wagering market continues to expand as more states move to legalise such activities.
Kokkalis and other members of the senior management team at Intralot have also spoken about a growing lottery footprint in the US where, during the last year, it has extended deals in New Hampshire, Wyoming and New Mexico, and signed a new agreement in Illinois. It will also look to build on its new contract with Canada's British Columbia Lottery Corporation, and will pursue opportunities in Ohio.
Aside from the US, Intralot has agreed new deals with German state lottery Lotto Hamburg, the Croatian State Lottery and Dutch Lottery operator Nederlandse Loterij, as well renewing its sports betting contract with Morocco's La Marocaine Des Jeux et des Sports (MDJS).
Intralot is also seeking out new opportunities in markets such as Turkey, Italy, Argentina and Brazil.
In April, Intralot announced plans to launch a cost reduction plan after reporting declines in turnover for all key operating segments in its 2018 results, with its struggles blamed on foreign exchange losses and failure to secure new supply contracts during the year.
Group turnover for the year ended December 31, 2018 fell 6.4% to €870.8m (£780.1m/$989.4m), with all core divisions posting year-on-year declines.
Since posting these results, Intralot has reorganised its operations, technology, digital and commercial divisions as part of a wider restructuring of the business. The new structure is designed to help cut costs and streamline the business, allowing for faster project delivery and to better leverage new product launches across all divisions.
Its 2018 struggles have carried over into the current year, with Intralot reporting an 8.5% year-on-year decline in revenue for the first quarter of its financial year, following weaker performances from all key business units.