Intralot revenue growth driven by Argentina upswing during Q1

Intralot posted double-digit revenue growth but flat EBITDA in Q1 2025 as improved trading conditions in Argentina and growth in its Game Management and Licensed Operations segments helped its topline.

For the three months to 31 March 2025, revenue at the Athens-headquartered gaming technology group reached €94.4 million ($107.1m/£79.5m). This was up 10.9% compared to the same period in 2024. Intralot also saw gross gaming revenue (GGR) grow by 8.3% to €88.5 million.

Lottery games remained the largest moneymaker for Intralot, drawing 55.2% of all revenue during Q1. This was up slightly on the 54.8% share during the 2024 financial year. Sports betting generated 25.0% of total revenue in Q1, video lottery terminals 11.6% and IT products and services 8.2%.

Within revenue per activity line, Intralot’s B2B segment accounted for 88.9% of the total figure. This was slightly down on the 90.2% of FY2024.

Argentina trading conditions continue to improve

Intralot’s best performing business unit remains Technology by some distance, accounting for €61.4 million and 65% of the total. However, this was down from 71% during Q1 2024, with takings up by just €1.0 million. The segment was aided by strong performance in Argentina, upward sales trajectory in Croatia and organic growth in Oceania. However, performance in the US has been impacted by lower activity of multi-state jackpots, Intralot said.

The group’s B2C Licensed Operations, located in Argentina, remains the smallest segment, however it grew by 64.8% year-on-year and now accounts for €10.5 million and 11% of the total. In Q1 2024 it made up just 7% of the total. Intralot said improving macroeconomic conditions in Argentina are supporting market growth. In local currency terms, the results for the current period posted an increase of 106.1% compared to the same period last year.

Game Management was up 22.8% to €22.5 million, now accounting for 24% of the total. The increase was triggered by 61% growth of online sports betting in Turkey, despite the 14.8% devaluation of the Turkish lira.

Intralot’s EBITDA flat during the quarter

Total operating expenses increased slightly by €1.0m (up 3.7%), which Intralot said was necessary to support topline growth. Other operating income came to €7.6m, an increase of 14.2% year-on-year.

EBITDA was almost flat compared to the same period last year, growing by 0.3% to €30.2 million. Intralot said the steady performance “demonstrate[d] the continued resilience of the group’s operations.” While, it added, “robust performance from key markets contributed positively to the overall results”.

Operating cash-flow improved by €21.8m, reaching €48.9m compared to €27.1m in Q1 2024. This increase, Intralot said, was mainly driven by the collection of prior-year receivables.

Chairman Sokratis P Kokkalis welcomed the results and focused on post-period gains. One of those was Intralot recently signing a new six-year agreement with the Department of Internal Affairs (DIA) of New Zealand, he said, which continues a long-term supply deal for an electronic monitoring system (EMS) solution for gaming machines. Meanwhile, in April, the group extended its gaming systems contract with the New Hampshire Lottery Commission for an additional seven years.

“Intralot’s 1Q2025 results are characterised by revenue growth and free cash flow generation combined with stable profitability and continuing debt reduction, resulting in net debt leverage ratio of 2.4x,” Kokkalis explained.

“On the commercial front the company renewed key contracts in New Zealand through 2032 and New Hampshire through 2033, with the latter becoming the first US state to install our new central lottery platform Lotos X with its advanced functionalities.”

No Australian acquisition on the horizon for Intralot

Earlier this month, Intralot rejected speculation it has held talks over a possible acquisition in Australia. Reports in the country suggested it is weighing up a move for Max Gaming, the gaming monitoring arm of Tabcorp.

According to an article in The Australian, Intralot made an initial approach to Tabcorp over a potential purchase. The same article said Max Gaming could be worth up to AU$610 million (€348 million/US$394 million).

Responding to the reports, Intralot said in a statement that no such talks have taken place. “Intralot clarifies that no binding agreement of this kind exists,” it said. “Currently, Intralot is not conducting any negotiations relating to any acquisition in Australia.”