Intralot targets US expansion after mixed Q1

Intralot has set out plans to capitalise on the recent Supreme Court ruling in the US and grow its presence in the region, after posting mixed results for the first quarter.

Revenue in the three months to March 31 amounted to €280.7m ($328.1m), up 4.3% on €269m in the same period last year, while gross gaming revenue also increased 2.5% to €141.5m

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 7.5% from €30.8m to €33.1m.

However, earnings before tax dropped 5% year-on-year to €13.2m, with a lower margin of 4.7%, while operating cash flow was also down 8.4% from €39.2m to €35.9m

Intralot also noted that gross debt increased from €669.5m to €751.6m, while net debt was up from €502.9m to €528.3m.

Antonios Kerastaris, group chief executive at Intralot, said: “The 2018 Q1 results show stronger sales and continuing growth in developed markets, reflecting increasingly successful market development efforts along with an upgrade of our offering with next generation products and services for lotteries digital transformation.

“Emphasis remains on growth in markets such as the United States where the recent lift of the federal ban on sports betting creates tremendous business opportunities from the rise of a potential €20bn market in annual GGR terms, on top of great prospects in new flagship projects such as the Illinois State Lottery.”

Related article: Intralot sees earnings rise in 2017