INTRALOT announces First Half 2020 Financial results

 Next, we highlight the most important contents of the document published by Intralot on September 4:

• Group Revenue at €168.2m in 1H20.
• EBITDA in 1H20 at €26.7m, while Adjusted EBITDA at €24.0m.
• NIATMI (Net Income After Tax and Minority Interest) from continuing operations at €-42.9m.
• North America operations, under Intralot Inc., achieved significant y-o-y growth (Revenue +15.2%, EBITDA +35.8%).
• Group OPEX in 1H20 better by 26.5% vs. a year ago, with Greek entities OPEX lower by 14.2% y-o-y.
• Group Net CAPEX in 1H20 was €15.2m. lower by 52.1% compared to a year ago.
• Group Cash at the end of 1H20 at €137.5m, remaining at similar levels with the onset of the COVID-19 pandemic in 1Q20.
• Net Debt at €623.1m, lower by €29.3m y-o-y.

INTRALOT Group CEO Christos K. Dimitriadis noted:
“During the first half of 2020 we have navigated through the COVID-19 pandemic as well as the effect of discontinued operations in Bulgaria and Turkey. We have revisited our strategy, accelerated its execution, reorganized the Group, gave priority to our customers and to our people, addressed our financials with prudency, diversified our portfolio even further, ensured continuity in service provision and identified ways to unlock the hidden potential of our digital technology.
As a result, we have achieved significant growth in our US operation, substantial reduction of the Group’s OPEX and CAPEX and maintenance of strong liquidity levels. Most importantly we are continuously being prepared for the future and the new realities that are being established worldwide.”

CORONAVIRUS PANDEMIC IMPACT UPDATE
The COVID-19 pandemic continues to affect economic and business activity around the world. The extent of its impact will depend on its duration, government policy in key jurisdictions regarding restrictions implemented and the current and subsequent economic disruption that the pandemic will cause.

According to late August 2020 H2GC data, the current outlook for the gaming business has worsened when compared to H2GC late-May outlook, showcasing though a stabilizing trend. Gaming industry global GGR for 2020 is expected to fall between 2010 and 2011 levels, i.e. around $353 billion, approximately 26% lower compared to its forecasts prior to the COVID-19 outbreak, impacted significantly among other factors by the postponement or cancelation of major sporting events and competitions globally.

By evaluating the latest available data and known lockdown conditions per jurisdiction and the moderate restart of sporting events, the Company’s best estimate impact for 2020 remains in the vicinity of €25m at Group’s EBITDA level.

Estimates, in terms of impact rest in the fact that restrictions in various markets have been lifted earlier than initially expected and the top line impact in many cases is lower than previously forecasted. For example, in the US, monthly data show a high degree of resilience of our operations, and in Malta the lockdown was lifted on early May, earlier than anticipated. In Morocco, despite an earlier than anticipated lockdown lift, the lift has been followed by turbulence, i.e. local lockdowns that have affected the local economies and our operations. In Australia, however, impact assumptions are confirmed until now as well as for other jurisdictions, especially those in the South America region. We are monitoring and assessing the situation focusing, besides restrictions lift, on activity pickup curves.

The health and safety of our team remains our top priority. The company is constantly reviewing the situation in order to protect the safety of its employees and the integrity of its operation and will offer updates when conditions change materially.