Intralot Posted 83% Drop in Q3 2022 Profit, 65.8% Drop YTD

Intralot Posted 83% Drop in Q3 2022 Profit, 65.8% Drop YTD

Gaming and lottery solutions and technology provider Intralot reported its financial results for the third quarter of 2022, registering an 83% drop in earnings before tax year-over-year.

Three Months to September 30, 2022

For the three months ended September 30, 2022, Intralot reported a turnover of €96.9 million ($101.75 million), marking a decrease of 3.2% to €100.2 million ($105.2 million) reported in the third quarter of 2021. Intralot attributed the drop of €3.3 million ($3.46 million) primarily to the license expiration in Malta.

On a constant currency basis, Intralot reported that Q3 2022 revenue increased by 7.7% year-over-year as it experienced €11 million ($11.5 million) of negative foreign exchange (FX) impact.

Gross gaming revenue (GGR) from continued operations was €88.1 million ($92.5 million), up €7.6 million ($7.98 million) or 9.4% to Q3 2021. The increase goes up to 18.8% when accounting for the negative FX impact on GGR in the quarter of €7.5 million ($7.88 million).

Operating expenses in the quarter posted a decrease of €1.7 million ($1.79 million) to €20.8 million ($21.8 million), while other operational income registered an increase of 11%, or €0.6 million ($0.63 million) mainly driven by the equipment leases in the USA.

EBITDA from continuing operations came at €33 million ($34.6 million), up 16.6% to €28.3 million ($29.7 million) in the third quarter of the previous year. Accounting for a negative FX impact of €3.5 million ($3.67 million) Q3 2022 EBITDA is 28.8% higher than in Q3 2021.

Earnings before tax (EBT) in the quarter fell to €11.4 million ($12 million) from €67.2 million ($70.56 million), or 83%. The quarterly result was impacted by the lower interest income arising from the balance sheet optimization transaction which concluded in Q3 2021 and the lower income from participations and investments which was affected by the gain from the balance sheet optimization transaction.

The negative impacts were partially offset by the lower interest expenses as a direct effect of debt restructuring, lower reorganization expenses, gains on net monetary position, and better FX results. On a constant currency basis, Q3 2022 EBT was €25.7 million ($27 million), down 62.1%.

Nine Months to September 30, 2022

For the nine months ended September 30, 2022, turnover was 0.3% down, GGR was up 5%, operating expenses increased by 2.2%, other operating income was up 13.35, EBITDA came 6.65% higher, and EBT was down 65.8%. Intralot chairman and chief executive officer Sokratis Kokkalis commented:

Intralot’s significantly improved financial results for the nine-month period reflect the benefits from the extensive business and capital structure re-organization efforts during 2021 and 2022 along with healthy cash flow generation and profit margins that create stability and provide us the runway to deploy our plans on opportunities, particularly in the online domain, in the US and around the world.

Intralot chairman and chief executive officer Sokratis Kokkalis

Operating cash flow decreased by 19.6% to €67.7 million ($71.1 million) and net debt increased by 2.5% to €509.6 million ($535.1 million).