Transformation strategy beginning to bear fruit
Gaming solutions and operations provider Intralot SA reported a pleasing full year 2016 performance, saying a series of M&A deals had greatly enhanced its business development potential.
Key performance highlights for the 52-weeks, ending December 31, 2016 include:
– A 7.1 percent increase in consolidated revenues amounting to Euro 1,323.6 million.
– Adjusting for Eurobet’s first time consolidation, total revenues for the twelve-month period ending in December 31st, 2016, shaped to Euro 1,295.8 million, an increase of 4.9 percent y-o-y)
– On a constant currency basis, revenues—net of the negative FX impact of Euro 148.5 million —reached Euro 1,472.1 million, up 19.2 percent y-o-y).
– INTRALOT systems handled Euro 23.4 billion in worldwide wagers (from continuing operations), a 1.0 percent y-o-y increase.
– The Payout ratio increased to 70.2 percent (2015: 66.7 percent).
– Gross gaming revenues grew 3.5 percent.
– Gross profit margin was 17.6 percent (2015: 18.9 percent).
– Other operating income totalled Euro 33.1 million (2015: Euro 23.1 million), up 43.3 percent.
– Total operating expenses increased slightly by 0.5 percent, to Euro 158.3 million due to impairment losses.
– EBITDA was Euro 175.8 million, up 6.6 percent.
– EBITDA margin from continuing operations, remained steady at 13.3 percent.
– Operating Cash-flow increased significantly to Euro 168.1 million vs. Euro 113.8 million in FY15.
– Numerical Games were the largest contributors to Intralot’s top line, comprising 41.9 percent of revenues, followed by Sports Betting contributing 41.6 percent to Group turnover. Technology contracts accounted for 10.9 percent and VLTs/AWPs represented 3.0 percent of Group turnover while Racing constituted the 2.6 percent of total revenues for the Fiscal Year 2016.
– Africa’s wagers increased by 23.6 percent, North America’s wagers increased by 8.4 percent, East Europe’s by 1.7 percent, and West Europe’s by 0.4 percent while South American wagers decreased by 7.2 percent, and Asia’s wagers decreased by 4.1 percent.
Antonious Kerastaris, group CEO of INTRALOT Group, noted:
“The strongly positive results of 2016 in both growth and profitability reflect important transformations that have taken place over the past couple of years across operational capabilities, project management, cost structure, and Products and Services portfolio investments.
“The past year was also marked by tremendous improvements in INTRALOT’s financial structure in a way that secures future savings and a clear funding horizon until 2021 while affirming international investors’ confidence in future value creation.”