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INTRALOT announces its financial results for the nine-month period in 2018, prepared in accordance with IFRS

Published

7 years ago

November 26, 2018

Reading Time: 18 minutes

INTRALOT announces Revenue on par (+0.5%), consolidated EBITDA contraction (-6.6% y-o-y) following FX turmoil in key markets, and stable organic EBITDA y-o-y for 9M18

INTRALOT SA (RIC: INLr.AT, Bloomberg: INLOT GA), an international gaming solutions and operations leader, announces its financial results for the nine-month period ended September 30^th, 2018, prepared in accordance with IFRS.

 Revenue and EBITDA growth of +10.3% and +9.3% year over year respectively on a constant currency basis.

 Group Revenues at similar levels in 9M18, compared to 9M17 (+0.5%).

 EBITDA in the nine-month period lower by 6.6% year over year.

 EBITDA margins on sales and on GGR contracted by 1.1pps (at 14.4%) and 1.5pps (at 28.6%), respectively.

 EBT concluded to €46.3m higher by 85.2% vs. 9M17. EBT margin developed to 5.8% (+2.7pps vs. 9M17).

 NIATMI (Net Income After Tax and Minority Interest) from continuing operations improved by €11.7m vs. last year, developing to €-11.0m.

 Operating Cash Flow in 9M18 below last year by €-60.2m.

 Net Debt stood at €598.5m, up €87.8m compared to December 31^st 2017.

 On September 5^th, 2018, INTRALOT announced the signing of a 10-year contract with the German State Lottery “LOTTO Hamburg GmbH” for the provision of a new Lottery System Platform based on LotosX.

 On October 10^th INTRALOT announced a 10-year contract with the Croatian State Lottery “Hrvatska Lutrija” for the implementation of the new integrated LotosX ecosystem and the provision of operational support.

 In late October 2018, INTRALOT signed a 2-year contract extension with the New Mexico Lottery along with the green light to be the provider of the New Mexico Sports Lottery Game available through the Lottery’s entire retail network.

 On November 21^st, 2018, Inteltek, the business partnership of Turkcell and Intralot, capitalizing on 15 years of successful operation of the iddaa game, announced its plans for the creation of a global research and software development center in the area of mobile games in Turkey.

OVERVIEW

9M18 INFOGRAPHIC

Group Headline Figures

(in € million)	9M18	9M17	% Change	3Q18	3Q17	% Change	LTM
Revenues (Turnover)	798.6	794.7	0.5%	251.0	260.0	-3.5%	1,108.1
GGR	401.3	409.3	*-2.0%*	125.7	135.5	*-7.2%*	571.1
EBITDA	114.9	123.0	*-6.6%*	34.8	40.9	*-14.9%*	163.4
EBITDA Margin (% on Revenue)	14.4%	15.5%	-1.1pps	13.9%	15.7%	-1.8pps	14.8%
EBITDA Margin (% on GGR)	28.6%	30.1%	-1.5pps	27.7%	30.2%	-2.5pps	28.6%
Adjusted EBITDA[1]	89.7	93.7	-4.3%	26.1	31.2	-16.6%	127.1
EBT	46.3	25.0	85.2%	13.8	7.5	85.3%	31.6
EBT Margin (%)	5.8%	3.1%	+2.7pps	5.5%	2.9%	+2.6pps	2.9%
NIATMI from continuing operations	-11.0	-22.7	*51.5%*	-7.9	-7.1	*-11.3%*	-46.9
NIATMI from total operations	-11.0	-32.0	65.6%	-7.9	-6.2	-27.4%	-32.4
Total Assets	929.3	1,333.1	–	–	–	–	–
Gross Debt	749.8	987.0	–	–	–	–	–
Net Debt	598.5	497.0	–	–	–	–	–
Operating Cash Flow	60.3	120.5	-50.0%	23.6	43.3	-45.5%	93.8

“INTRALOT has successfully won new projects in the past two months such as Lotto Hamburg and the Croatian Lottery as well as extended its New Mexico contract in the US; in the latter case including approval for a new sports prognostics game, available through the entire retail footprint of the lottery. All these projects will apply new technological solutions developed by INTRALOT, reflecting the positive prospects created by our significant investments in the last two years. We are also looking forward to the commencement of our operations in Illinois, a project that has heavily impacted our financials in 9M18. Such developments confirm our positive outlook after the current transition year according to our business plan.”

INTRALOT Group CEO Antonios Kerastaris noted:

OVERVIEW OF RESULTS

WAGERS HANDLED

During the nine-month period ended September 30^th, 2018, INTRALOT systems handled €15.0b of worldwide wagers (from continuing operations[2]), a 3.2% y-o-y decrease. Africa’s wagers increased by 17.6% (driven by Morocco’s performance), East Europe’s by 8.0% (affected by the TRY currency devaluation), South America’s by 4.9% (affected by the Argentinean Peso movement), West Europe’s by 4.8%, North America’s by 2.1% (FX driven), and Asia’s by 2.0%.

REVENUE

Reported consolidated revenues slightly higher compared to 9M17, leading to total revenues for the nine-month period ended September 30^th, 2018, of €798.6m (+0.5%).
Sports Betting was the largest contributor to our top line, comprising 57.8% of our revenues (posting a 6.8% revenue growth, year over year), followed by Lottery Games contributing 30.5% to Group turnover. Technology contracts accounted for 6.2% and VLTs represented 2.8% of Group turnover while Racing constituted the 2.7% of total revenues of 9M18.
Reported consolidated revenues for the nine-month period are up by €3.9m year over year. The main factors that drove top line performance per Business Activity are:
€+14.8m (+2.7%) from our Licensed Operations (B2C) activity line with the increase attributed mainly to higher revenues in:
Bulgaria (€+16.2m), mainly following the growth in Virtual Sports and Racing; with the growth in both types of games in part fueled by the increasing Payout,
Azerbaijan (€+11.5m), driven by the enhanced Sports Betting portfolio (both retail and online),
Poland with additional revenues of €8.3m due to the growth of the interactive Sport Betting channel (following market regulation) and the introduction of Virtual Games in 2Q17,
in part offset by the impact of the suspended license in Cyprus in 4Q 2017 (€-12.1m),
and the lower recorded revenues, in Euro terms, from our Argentinean[3] licensed operations (€-5.8m). In local currency, 9M18 results posted a c.+45.0% year over year increase (higher compared to the 2015-2017 CAGR of c.27.0%), heavily affected though by the local currency fluctuations (c.64.0% Euro appreciation versus a year ago – in YTD average terms), with that being the key driver for the worsening performance in Euro terms in the nine-month period.
€+0.1m (+0.1%) from our Management (B2B/ B2G) contracts activity line with the positive variance driven by:
Morocco’s (€+4.0m or c.+26% y-o-y growth) Sports Betting sales uplift attributed to the enhanced product offering,
absorbing the deficit, in Euro terms, from our Turkish operations (€-3.1m). In local currency, 9M18 revenue showcased a c.+31.0% increase attributed both to the growth of the Sport Betting Market year over year (c.+24.0% in local currency) and the shift towards Online Sports Betting (slightly over 60% sales mix participation vs. about 50% a year ago). Nevertheless, the benefit of the Sports Betting market expansion and mix change has been fully counterbalanced by the devaluation of the local currency (c.38.0% Euro appreciation versus a year ago – in YTD average terms).
€-11.0m (-6.7%) from our Technology and Support Services (B2B/ B2G) activity line with the decrease attributed mainly to:
Australia’s lower recorded revenue (€-5.2m) largely as a result of a software license right sale in 2Q17 coupled with adverse local currency movement (c.8.4% Euro appreciation – in YTD average terms),
lower sales in Greece (€-4.4m) driven by the transition to the new OPAP contract, after July, that has a smaller contract value, due to its limited scope (vs. the previous contract), specifically in the field of numerical games,
Argentina’s[4] lower recorded sales in Euro terms (€-3.4m) as a result of the significantly adverse FX movement. In local currency, 9M18 results posted a c.+38.0% year over year increase (higher compared to the 2015-2017 CAGR of c.32.0%), heavily affected though by the local currency fluctuations (c.64.0% Euro appreciation versus a year ago – in YTD average terms), and to
our US operations’ lower revenues in Euro terms (€-1.2m) impacted by the adverse USD movement (c.7.0% Euro appreciation versus a year ago — in YTD average terms). In local currency base our US operations presented a c.5.0% increase driven by the improved contract terms (e.g. Idaho) and higher equipment sales vs. a year ago (Massachusetts driven), thus, fully absorbing the impact of the expired contract in South Carolina,
in part offset by the maturing Chilean contract (€+1.9m) that went live in early 1Q17.
On a quarterly basis, revenues decreased by 3.5% compared to 3Q17, leading to total revenues for the three-month period started in July 1st, 2018, and ended in September 30th, 2018, of €251.0m. Decreased revenues for the quarter (€-9.0m) are primarily the result of Turkey’s and Argentina’s FX impacted revenues, the lower sales in Greece (OPAP driven), the Cyprus suspended SB license, the US (last year’s high Powerball Jackpot in 3Q17 and the discontinuation of our South Carolina contract), and Poland (increasing competition), in part offset by Azerbaijan’s and Bulgaria’s better top line performance
Constant currency basis: In 9M18, revenues — net of the negative FX impact of €78.3m —reached €876.9m (+10.3% y-o-y), while 3Q18 revenues — net of the negative FX impact of €30.2m – reached €281.2m (+8.1% y-o-y).

GROSS GAMING REVENUE & Payout

Gross Gaming Revenue (GGR) from continuing operations decreased by 2.0% (€-8.0m to €401.3m) year over year driven by:
the significant drop in the non-payout related GGR (€-11.6m vs. 9M17), largely due to the revenue shortfall in Australia (software license right sale in 2Q17), Greece (OPAP driven), US (Powerball and SC discontinuation) and FX impacted sales in Turkey and Argentina; counterbalanced by the stronger top line in Morocco,
in part offset by the increase in our payout related GGR (+2.2% y-o-y or €+3.6m), following the stronger top line growth of our licensed operations (+2.9% y-o-y on wagers^[5]) which came at a slightly increased YTD average Payout. YTD Average Payout Ratio was up by 0.2pps vs. LY (70.7% vs. 70.5%) primarily due to an increasing weighted contribution from Bulgaria (Payout and wagers driven), Poland (wagers driven), and Azerbaijan (wagers driven) counterbalanced by the suspended license in Cyprus in 4Q 2017, Brazil (decreasing wagers contribution) and Argentina (wagers and payout driven).
In 3Q18, GGR from continuing operations decreased by -7.2% (or €-9.8m) year over year driven by:
the decrease of the non-payout related GGR (-14.1% y-o-y or €-11.4m) largely due to the FX impacted revenues in Turkey and Argentina, Greece’s revenue shortfall (OPAP driven), and our US operations’ decreased revenues as a result of last year’s high Powerball Jackpot in 3Q17 and the SC contract discontinuation,
partially counterbalanced by the increase in our payout related GGR (+2.5% y-o-y or €+1.4m) following the better top line performance of our licensed operations (+1.3% y-o-y on wagers⁵) supported further by a lower recorded average Payout Ratio. In 3Q18 the average Payout Ratio improved by -0.4pps vs. 3Q17 (69.0% vs. 69.4%).
Constant currency basis: In 9M18, GGR — net of the negative FX impact of €54.9m —reached €456.1m (+11.4% y-o-y), while 3Q18 GGR — net of the negative FX impact of €21.6m – reached €147.3m (+8.7% y-o-y).

EBITDA & EBITDA MARGINS[6]

EBITDA, from continuing operations, developed to €114.9m in 9M18, posting a decrease of 6.6% (€-8.1m) compared to the 9M17 results. On an organic level[7], growth fully absorbed LY’s software license right sale in Australia, Powerball impact along with the SC contract discontinuation and the IL implementation expenses in the US, OPAP’s new contract scope, and Bit8’s first time consolidation but could not fully absorb the extremely adverse FX movement across markets (mainly Turkey, Argentina, Australia and the US).
The main drivers for the decrease in 9M18 EBITDA, besides the 9M18 GGR decrease, are:
the deterioration in the OPEX margin (-1.7% over GGR); mainly driven by the deterioration of the respective B2B/ B2G OPEX margin as a result of the increased administrative expenses (US mainly) and advertising expenses (largely driven by the increased marketing expenses in Turkey related to our Online Sport Betting activity), coupled with penalty provisions in Morocco (based on a performance reconciliation mechanism). The impact of the first-time consolidation of Bit8 has been fully offset by Intralot HQ OPEX savings/ phasing.
the decrease in the Other operating income in 9M18, which totaled €11.3m compared to €13.0m in 9M17, mainly driven by the less equipment lease income in USA (following the recent contract renewal in ID; the shortfall, in local currency terms, has been more than recouped from the increased revenue), coupled with the adverse USD movement against the Euro.
partially offset by the improvement in the Taxes & Agent Fees margin (+0.5% over GGR), driven by the improvement in the respective B2B/B2G margin as a result of a more favorable sales mix in the retail Sports Betting segment in Turkey,
and the improvement in the Rest of Cost of Sales margin (+0.2% over GGR) driven mainly by the improvement in the margin of the B2B/ B2G contracts, that fully absorbed the SC contract discontinuation and IL implementation expenses’ impact.

On a yearly basis, EBITDA margin on sales, has been impacted by the worsening margins of the B2B/ B2G segment, decreasing to 14.4% compared to 15.5% in 9M17 mainly due to Australia’s software license right sale in 2Q17, OPAP’s new contract scope, US Powerball impact in 3Q17, SC contract discontinuation, IL implementation expenses and first-time consolidation of Bit8.
On a quarterly basis, EBITDA decreased by -14.9% to €34.8m, mainly due to OPAP impact, US Powerball in 3Q17, Admin Cost increase, SC contract discontinuation, IL implementation expenses’ impact, and adverse FX vs. a year ago.
On a quarterly basis, EBITDA margin on GGR, deteriorated to 27.7% compared to 30.2% in 3Q17, as a result of the B2B/ B2G segment margin contraction following mainly the impacts from US Powerball in 3Q17, SC contract discontinuation, IL implementation expenses’ impact, OPAP impact, and the first-time consolidation of Bit8.
LTM EBITDA developed to €163.4m posting a decrease of -3.6% vs. 1H18.
Constant currency basis: In 9M18, EBITDA, net of the negative FX impact of €19.6m, reached €134.5m (+9.3% y-o-y) while 3Q18 EBITDA, net of the negative FX impact of €7.7m reached €42.5m (+3.8% y-o-y).

EBT / NIATMI

EBT in 9M18 totaled €46.3m, significantly higher compared to €25.0m in 9M17. The impact of the decreased EBITDA described above (y-o-y: €-8.1m) was completely counterbalanced by the significantly better FX results (mostly unrealized) (€+16.2m vs. 9M17) driven mainly by the better USD performance against the local currencies (e.g. high portion of Cash and Cash equivalents in Turkish Entities are held in USD) — being in part offset though by the deterioration of local currencies against EUR, the better Net Interest results (€+7.6m) driven mainly by higher Finance Income (including a legal case won, and Turkey’s Interest Income on Cash & Cash Equivalents) and of a lower Finance Expense (lower LG expenses, lower charge from interest bearing liabilities, and part of the prior year accelerated amortization, amounting to €3.5m, due to Refinancing of 2017), the better results derived from the equity method consolidation of associates (€+1.8m vs. 9M17; benefited by the better performance of our equity investment in Peru and the full consolidation of Bit8 in 4Q17), the lower D&A for the period (favorable impact: €+1.7m vs. 9M17), the higher income from participations/investments (€+1.5m; assisted mainly by the higher dividend received from our investment in Hellenic Lotteries in 2Q18), and the lower impairments of assets for the period (€+0.6m).
In 3Q18, the significantly better FX results (mostly unrealized) (€+8.3m driven by the USD performance against the local currencies), and the better Net Interest results (€+6.0m) driven by a higher Finance Income (including a legal case won, higher Interest from Turkey’s Cash & Cash Equivalents) and the lower Finance Expense (driven by the lower charge from interest bearing liability, and of the 3Q17 accelerated amortization amounted to €3.5m), being in part offset by the higher D&A (impact: €-1.4m) more than absorbed the recorded y-o-y EBITDA deficit (€-6.1m vs. 3Q17), thus, concluding to an EBT of €13.9m (+6.4m vs. 3Q17).
Constant currency basis: In 9M18 EBΤ, adjusted for the FX impact, reached €54.7m from €31.0m in 9M17 while in 3Q18 adjusted for the FX impact, concluded to €15.3m from €9.2m in 3Q17.
NIATMI from continuing operations in 9M18 concluded at €-11.0m compared to €-22.7m in 9M17. NIATMI from total operations in 9M17 was further deteriorated from the PAT contribution of the prior period’s discontinued operations (€-9.3m) and concluded at €-32.0m (in 9M18 there were no discontinued entities). In 3Q18, NIATMI from continuing operations shaped at €-7.9m (vs. €-7.1m y-o-y). NIATMI from total operations in 3Q17 was €-6.2m positively affected by the PAT contribution of the prior period’s discontinued operations (€+1.0m)
Constant currency basis: NIATMI (total operations) in 9M18, on a constant currency basis, reached €-7.2m from €-11.7m in 9M17 while in 3Q18 reached €-7.4m from €-4.3m

CASH-FLOW

Operating Cash-flow posted a considerable decrease in 9M18 at €60.3m vs. €120.5m in 9M17. Excluding the operating cash-flow contribution of our discontinued operations (Jamaica, Santa Lucia, Russia, and Slovakia) in 9M17 (€+12.7m), the cash-flow from operating activities is lower by €47.5m (€60.3m vs. €107.8m) mainly driven by the lower recorded EBITDA y-o-y (€-8.1m) and the adverse working capital movement of 9M18 (€-34.3m vs. €+5.8m in 9M17). Current period WC impact is driven by the repayment of a long due interest-bearing liability (€-13.0m) and the inventory buildup for new projects (€-20.8m) largely as a result of the Illinois and Ohio projects.
Adjusted Free Cash Flow[8] in 9M18 decreased by €13.4m, to €9.9m compared to €23.3m a year ago. Main contributors to this variance were the lower recorded EBITDA y-o-y, the higher Net Finance Charges (higher bond debt exposure and timing variance of the bond coupons payment schedule, being in part offset by lower RCF lines exposure), and the higher dividends received from our equity investment in Italy & Greece (Gamenet first-time dividend distribution and the higher dividend vs. 9M17 from “Hellenic Lotteries S.A.”). In 3Q18, the Adjusted Free Cash Flow reached €-2.7m, decreased by €15.6m vs. 3Q17, mainly affected by the lower EBITDA in 3Q18 (vs. 3Q17) and the timing variance of the bond coupons payment schedule (following the refinancing that took place in 3Q17 resulting in coupon payments across Q1 and Q3 vs. a coupon payment every Quarter previously).
Net CAPEX in 9M18 was €65.0m compared to €59.3m in 9M17 affected mainly by the ongoing US CAPEX. Headline CAPEX items in 9M18 include €13.9m towards R&D, €30.4m in the US mainly towards the Illinois new contract, Ohio contract renewal, and New Hampshire’s “Keno” service launch, and €5.8m towards AMELCO. All other net additions amount to €14.9m for 9M18. Maintenance CAPEX for 9M18 stood at €16.5m, or 25.2% of the overall capital expenditure in 9M18 (€65.4m), at similar levels vs. a year ago (9M17; €15.7m or 26.4%).
Net Debt, as of September 30^th, 2018, stood at €598.5m, up €87.8m compared to December 31^st 2017 as a result of the investments in our US business (€-29.3m towards growth & renewal CAPEX in the US), the payment of the last instalment in AMELCO software (€-5.8m), the repayment of a long due interest bearing liability (€-13.0m), the inventory buildup for new projects (€-20.8m; as described above), own shares repurchase (€-8.6m), the net results from investments (€-3.6m; the outflow for an indirect stake in “Hellenic Casino Parnitha S.A.” of €6.8m being in part offset by the share capital return of €3.1m from the Hellenic Lotteries equity investment) and the bond IFRS treatment (€+7.5m). On a quarterly basis, Net Debt increased by €26.0m significantly affected by the increased US CAPEX and Inventory buildup outflow.

As of September 30th, 2018, a repurchase of Notes amounting to €5.0 million (€500M, 5.25% Senior Notes due 2024 ISIN XS1685702794) has occurred. We may proceed to repurchases of our debt again in the future subject to market conditions.

RECENT/ SIGNIFICANT COMPANY DEVELOPMENTS

On September 5^th, 2018, INTRALOT Global Operations B.V. a fully owned subsidiary company of INTRALOT S.A., following a competitive tender process procured by the German State Lottery “LOTTO Hamburg GmbH” was awarded a ten (10) years contract for the provision of a new integrated Lottery System Platform with multi-mandate capability, customized to the individual needs and requirements of Lotto Hamburg as well as to the German Lottery Market, supporting LOTTO Hamburg’s Strategic and Operational objectives.
On October 10^th, 2018, INTRALOT announced the signing of a 10-year contract with the Croatian State Lottery “Hrvatska Lutrija” for the implementation of the new integrated LotosX ecosystem with Omni Channel capability, the deployment of innovative Retail technology and the provision of operational support. All of the above will be customized to the specific needs and requirements of Hrvatska Lutrija and the Croatian gaming market, supporting the strategic and operational objectives for the extensive growth and future expansion of Hrvatska Lutrija in the verticals of Numerical & Instant Games, Betting and Online Casino.
On October 19^th, 2018, INTRALOT announced that its Group Chief Financial Officer Mr. George Koliastasis will step down on 31 December 2018. He will be succeeded by current Group Finance, Controlling & Budgeting Director Mr. Andreas Chrysos.
On October 30^th, 2018, the New Mexico Lottery Board voted unanimously to move forward with the creation of a game tied to the outcome of sporting events (Sports Lottery) as well as to grant a 2-year extension on its existing online systems contract with INTRALOT. The New Mexico Lottery will be the first Lottery in the United States to authorize a Sports wagering lottery game to be available through its entire retail network, approximately 1,100 retail terminals.
In November 19^th, 2018, INTRALOT Group announced the signing of an agreement with respect to the sale of the shares held by the Company’s 45% owned subsidiary İnteltek İnternet Teknoloji Yatırım ve Danışmanlık Ticaret A.Ş. (“INTELTEK”) in its 51% owned subsidiary Azerinteltek QSC (“Azerinteltek”) with a nominal value of AZN 51,000 to Baltech Investment LLC, shareholder of Azerinteltek with a 24.5% shareholding, for a total consideration of EUR 19,530,177. The transfer of shares is anticipated to be completed within 6 months.
On November 21^st, 2018, Inteltek, the business partnership of Turkcell and Intralot, capitalizing on 15 years of successful operation of the iddaa game, announced its plans for the creation of a global research and software development center in the area of mobile games in Turkey. In the first phase this center will employ 100 engineers.
During the period between 01.01.2018 and 30.09.2018, Intralot SA has proceeded with the repurchase of 9,218,779 own shares amounting to €8.59m with an average price of €0.93, while for the period between 01.10.2018 and 23.11.2018, Intralot SA did not proceed with any repurchases of own shares.

APPENDIX

Performance per Business Segment

YTD Performance

Quarterly Performance

Performance per Geography

Revenue Breakdown

(in € million)	9M18	9M17	% Change
Europe	467.6	456.8	2.4%
Americas	152.4	166.4	-8.4%
Other	216.0	209.1	3.3%
Eliminations	-37.4	-37.6	–
Total Consolidated Sales	798.6	794.7	*0.5%*

Gross Profit Breakdown

(in € million)	9M18	9M17	% Change
Europe	56.3	49.0	15.1%
Americas	17.5	22.4	-21.9%
Other	93.3	92.2	1.2%
Eliminations	-4.9	-0.3	–
Total Consolidated Gross Profit	162.2	163.3	*-0.7%*

Gross Margin Breakdown

	9M18	9M17	% Change
Europe	12.0%	10.7%	+1.3pps
Americas	11.5%	13.5%	-2.0pps
Other	43.2%	44.1%	-0.9pps
Total Consolidated Gross Margin	20.3%	20.5%	*-0.2pps*

INTRALOT Parent Company results

Revenues for the period decreased by 2.8% to €41.9m. The sales deficit is mainly driven by the lower sales in Greece, due to the transition to the new OPAP contract, after July, that has a smaller contract value, due to its limited scope (vs. the previous contract), specifically in the field of numerical games, which was in part offset by the increased royalties/ software license fees from subsidiaries and associates (e.g. Peru).
EBITDA shaped at €2.9m from €3.1m in 9M17. The impact from the gross profit deficit (driven by the lower top line) and the lower Other Operating Income was mitigated by the reduced OPEX (savings and timing).
Earnings after Taxes (EAT) at €-6.3m from €-1.3m in 9M17.
LTM EBITDA figure is lower by €1.8m vs. LTM 2Q18 following the 3Q18 performance of the Company (vs. 3Q17).

(in € million)	9M18	9M17	% Change	LTM
Revenues	41.9	43.1	-2.8%	65.6
Gross Profit	14.0	14.7	-4.8%	27.4
Other Operating Income	0.1	1.6	-93.8%	0.5
OPEX	-21.3	-24.2	-12.0%	-31.8
EBITDA	2.9	3.1	-6.5%	8.6
EAT	-6.3	-1.3	–	-16.5
CAPEX (paid)	-13.5	-10.6	27.4%	-18.2

CONFERENCE CALL INVITATION – 9M18 FINANCIAL RESULTS

Antonios Kerastaris, Group CEO, Georgios Koliastasis, Group CFO, Nikolaos Pavlakis, Group Tax & Accounting Director, Andreas Chrysos, Group Finance, Controlling & Budgeting Director and Michail Tsagalakis, Capital Markets Director, will address INTRALOT’s analysts and institutional investors to present the Company’s Third Quarter 2018 results, as well as to discuss the latest developments at the Company.

The financial results will be released on the ATHEX website (www.helex.gr), and will be posted on the company’s website (www.intralot.com) on Monday 26th November 2018 (after the close of the ATHEX trading session).

AGENDA: Brief Presentation – Question and Answer Session

CONFERENCE CALL DETAILS

Date: Wednesday, 28^th November 2018 Time: Greek time 17:00 – UK time 15:00 – CET 16:00 – USA time 10:00 (East Coast Line)
Conference Phone GR	+ 30 211 180 2000
Conference Phone GR	+ 30 210 94 60 800
Conference Phone GB	+ 44 (0) 203 059 5872
Conference Phone GB	+ 44 (0) 800 368 1063
Conference Phone US	+ 1 516 447 5632
We recommend that you call any of the above numbers 5 to 10 minutes before the conference call is scheduled to start.

LIVE WEBCAST DETAILS

The conference call will be available via webcast in real time over the Internet and you may join by linking at the internet site:

https://services.choruscall.eu/links/intralot18Q3.html

DIGITAL PLAYBACK

There will be a digital playback on the 28th November 2018 at 19:00 (GR Time).

This Service will be available until the end of the business day 7th December 2018.

Please dial the following numbers and the PIN CODE: 059 # from a touch-tone telephone

Digital Playback UK: + 44 (0) 203 059 5874

Digital Playback US: + 1 631 257 0626

Digital Playback GR: + 30 210 94 60 929

In case you need further information, please contact Intralot, Mr. Michail Tsagalakis, at the telephone number: +30 213 0397000 or Chorus Call Hellas S.A., our Teleconferencing Services Provider, Tel. +30 210 9427300.

SUMMARY OF FINANCIAL STATEMENTS

Group Statement of Comprehensive Income

(in € million)	9M18	9M17	% Change	3Q18	3Q17	% Change	LTM
Revenues	798.6	794.7	*0.5%*	251.0	260.0	*-3.5%*	1,108.1
Gross Profit	162.2	163.3	-0.7%	45.7	54.9	-16.8%	240.8
Other Operating Income	11.3	13.0	-13.1%	3.9	4.2	-7.1%	15.5
OPEX	-106.6	-103.0	3.5%	-31.0	-33.1	-6.3%	-154.2
EBITDA	114.9	123.0	*-6.6%*	34.8	40.9	*-14.9%*	163.4
Margin	14.4%	15.5%	-1.1pps	13.9%	15.7%	-1.8pps	14.8%
EBIT	66.9	73.3	*-8.7%*	18.6	26.0	*-28.5%*	102.1
Interest expense (net)	-31.5	-39.1	-19.4%	-9.6	-15.6	-38.5%	-55.3
Exchange differences	10.2	-6.0	–	6.6	-1.7	–	10.3
Other	0.7	-3.2	–	-1.7	-1.3	30.8%	-25.5
EBT	46.3	25.0	*85.2%*	13.9	7.5	*85.3%*	31.6
NIATMI	-11.0	-32.0	*65.6%*	-7.9	-6.2	*-27.4%*	-32.4
NIATMI continuing	-11.0	-22.7	-51.5%	-7.9	-7.1	11.3%	-46.9
NIATMI discontinued	0.0	-9.3	–	0.0	0.9	–	14.5

Group Statement of Financial Position

(in € million)	9M18	FY17
Tangible Assets	116.2	102.8
Intangible Assets	319.7	324.5
Other Non-Current Assets	171.9	178.6
Inventories	48.8	31.5
Trade receivables	62.0	84.2
Other Current Assets	210.7	300.3
Total Assets	929.3	1,021.9
Share Capital	47.1	47.7
Other Equity Elements	-33.4	10.1
Non-Controlling Interests	26.9	32.0
Total Shareholders’ Equity	40.6	89.8
Long-term Debt	745.4	729.4
Provisions/ Other Long term Liabilities	30.7	29.6
Short-term Debt	4.4	19.3
Other Short-term Liabilities	108.2	153.8
Total Liabilities	888.7	932.1
Total Equity and Liabilities	929.3	1,021.9

Group Statement of Cash Flows

(in € million)	9M18	9M17
EBT from continuing operations	46.3	25.0
EBT from discontinued operations	0.0	0.7
Plus/less Adjustments	69.0	113.0
Decrease/(increase) of Inventories	-18.5	-3.8
Decrease/(increase) of Receivable Accounts	11.5	0.7
(Decrease)/increase of Payable Accounts	-27.3	9.7
Income Tax Paid	-20.7	-24.8
Net Cash from Operating Activities	60.3	120.5
Net CAPEX	-65.0	-59.3
(Purchases) / Sales of subsidiaries & other investments	-3.6	6.2
Interest received	4.1	4.0
Dividends received	7.6	2.0
Net Cash from Investing Activities	-56.9	-47.1
Repurchase of own shares	-8.6	0.0
Cash inflows from loans	60.3	571.8
Repayment of loans	-45.4	-234.2
Bond buybacks	-5.0	0.0
Repayment of Leasing Obligations	-4.2	-2.2
Interest and similar charges paid	-48.0	-37.8
Dividends paid	-31.5	-34.0
Net Cash from Financing Activities	-82.4	263.6
Net increase / (decrease) in cash for the period	-79.0	337.0
Exchange differences	-7.6	-11.4
Cash at the beginning of the period	238.0	164.4
Cash at the end of the period from total operations	151.4	490.0

About INTRALOT

INTRALOT, a public listed company established in 1992, is a leading gaming solutions supplier and operator active in 50 regulated jurisdictions around the globe. With €1.1 billion turnover and a global workforce of approximately 5,100 employees (3,100 of which in subsidiaries and 2,000 in associates) in 2017, INTRALOT is an innovation – driven corporation focusing its product development on the customer experience. The company is uniquely positioned to offer to lottery and gaming organizations across geographies market-tested solutions and retail operational expertise. Through the use of a dynamic and omni-channel approach, INTRALOT offers an integrated portfolio of best-in-class gaming systems and product solutions & services addressing all gaming verticals (Lottery, Betting, Interactive, VLT). Players can enjoy a seamless and personalized experience through exciting games and premium content across multiple delivery channels, both retail and interactive. INTRALOT has been awarded with the prestigious WLA Responsible Gaming Framework Certification by the World Lottery Association (WLA) for its global lottery operations.

For more info:

-Mr. Chris Sfatos, Group Director Corporate Affairs, email: [email protected] or

-Investor Relations Dept. email: [email protected]

Phone: +30-210 6156000, Fax: +30-210 6106800, www.intralot.com

[1] Calculated as Proportionate EBITDA of fully consolidated entities including EBITDA from equity investments in Italy, Peru, Greece, and Taiwan

[2] Discontinued operations and contracts ended within the current period are excluded from the analysis.

[3] Argentina 2018 figures have been restated based on IAS 29 (Financial Reporting in Hyperinflationary Economies) so as to reflect current purchasing power. LY figures have not been restated based on IAS 21 (The Effects of Changes in Foreign Exchange Rates). 2018 Q3 P&L figures have a positive impact from the application of the hyperinflation standard. For further information, you may refer to the Notes of the Interim Financial Report for the period ended 30 September 2018.

[4] Argentina 2018 figures have been restated based on IAS 29 (Financial Reporting in Hyperinflationary Economies) so as to reflect current purchasing power. LY figures have not been restated based on IAS 21 (The Effects of Changes in Foreign Exchange Rates). 2018 Q3 P&L figures have a positive impact from the application of the hyperinflation standard. For further information, you may refer to the Notes of the Interim Financial Report for the period ended 30 September 2018.

[5] Licensed Operations Revenue include also a small portion of non-Payout related revenue, i.e. value-added services, which totaled €3.2 million and €4.0 million for 9M18 and 9M17, and €1.1 million and €1.2 million for 3Q18 and 3Q17 respectively

[6] Analysis in the EBITDA section excludes Depreciation & Amortization

[7] CPI adjusted for Turkey and Argentina

[8] Calculated as EBITDA – Maintenance CAPEX – Cash Taxes – Net Cash Finance Charges (excluding refinancing charges) – Net Dividends Paid; all finance metrics exclude the impact of discontinued operations

Source: Latest News on European Gaming Media Network

Related Topics:gambling industry in Europe

George Miller

George Miller (Gyorgy Molnar) started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

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Week 29/2025 slot games releases

Published

6 hours ago

July 18, 2025

George Miller

Reading Time: 4 minutes

Here are this weeks latest slots releases compiled by European Gaming

Spinomenal has rolled out the latest addition to its iconic Demi Gods Series: Demi Gods VI Hold & Hit. In this new release, players are transported to a mystical realm surrounded by ominous mountains and swirling mists. The adventure unfolds within a 5×3 reel frame, where electric anticipation crackles around each spin. Atlas, Selene, Helios, and Hera are once again the main protagonists on a mission through ancient Greece in the hunt for glory.

Million Games is thrilled to announce the launch of Fortune Fairies, an enchanting new video slot that takes players into a mystical forest filled with magic, rewards, and a jackpot. This 5×3, high volatility slot invites players into a world, where ethereal fairies, shimmering orbs, and hidden treasures await. Designed for players who love immersive storytelling and rewarding gameplay, Fortune Fairies features two captivating bonus rounds.

GAMOMAT, one of the leading independent German software developers for slot games, has released Roman Legion Flaming Link, the latest addition to join the line-up of its hugely successful Flaming Link series. This imperious 5×3 slot marches players straight to the heart of the Roman Empire, where legionnaires must vie for victory.

PG Soft has unveiled its fantasy-fueled video slot, Dragon’s Treasure Quest. The game is presented within a 5-reel, 3-row frame and features expanding reels and multipliers. Players must track down hidden treasures while navigating through legendary lore to find Wilds and Scatters, represented by a dragon eye and treasure chest respectively.

BC.GAME is adding a dark twist to its slot lineup with the launch of Symbiote, a high-volatility crypto slot developed by Croco Gaming. Inspire by the cult comic Venom, the game invites players into a battle for control — where fusing with an alien parasite brings incredible power, but always at a cost. Symbiote draws heavy visual influence from comic book aesthetics, particularly from the Venom universe.

Get ready to don your sombrero and put your piñata smashing arm to the test in Piñateros – the brand-new Premium release from popular software provider, Swintt, where collecting six or more flaming chilis can unlock fiery rewards or one of four red-hot local jackpots. Boasting a colourful collection of symbols that serves up sugar, spice and all things nice, this exciting 5×3 reel, 50-payline slot includes fresh fruits, thirst-quenching beverages and Mexican musical instruments among its unique icons, with expanding wilds helping to create further wins.

Saddle up, slot fans! TaDa Gaming’s latest release, Bounty Frenzy, is here to ignite the reels with wild west energy, gold-studded features and nonstop action. Packed with cascading wins, dynamic multipliers and transforming Gold Frame Wilds, this medium-volatility slot delivers thrilling gameplay with a 5000x max win potential.

The chaos-loving Joker returns in Cashin’ Joker, a vibrant 3-reel slot from Play’n GO that doesn’t play by the rules. As numbers tumble onto the reels and transform into powerful multipliers, players are thrust into a fast-paced experience full of surprises and dramatic shifts in momentum. Every time the Joker symbol appears, the game shifts into another gear.

Red Rake Gaming has released Super 60 Stars, the latest addition to its acclaimed Super series, now available to all partner operators. This new release retains the fast-paced gameplay and wide variety of features that have made the series one of the most popular in the iGaming industry, while also introducing an exclusive new addition that adds even more excitement to the game. The new feature in Super 60 Stars is the “Super 60 Stars” symbol, which can appear anywhere on the reels and trigger the brand-new “Super 60 Gold X” minigame.

The post Week 29/2025 slot games releases appeared first on European Gaming Industry News.

Latest News

Legends Charity Game in Lisbon to raise millions for charity

Published

7 hours ago

July 18, 2025

George Miller

Reading Time: 3 minutes

International stars of the football world are coming together in Lisbon this September for the Legends Charity Game in order to raise funds for communities suffering from the effects of war and local tensions around the world.

Timed to coincide with the SBC Summit in Lisbon, the Legends Charity Game on Monday 15 September is a highly anticipated match between Portugal Legends vs. World Legends, featuring some of the biggest names in the history of football. The Legends will compete in front of 60,000 Fans, and in front of millions of people that will watch the game online / on TV.

With strong support from the Portuguese Football Federation (FPF), the match will see Portuguese legends playing against footballing royalty from the Rest of the World in an event that aims to raise over €1,000,000 for selected charities in the support of communities and families experiencing extreme hardship.

Luis Figo, who won trophies across Europe as well as the Ballon d’Or in 2000, will be captaining the Portugal Legends side. He comments: “It’s always a pleasure to come back to my country and play football, especially when wearing the national team colours! Hope to see a full stadium in my hometown Lisbon for this amazing Legends Charity Game and raise funds for important charity causes.”

Joining Figo from the triumphant Euro 2016 winning squad are Ricardo Quaresma, Eliseu and Ricardo Carvalho. Champions League winners Fábio Coentrão, Maniche, Hugo Almeida, Vitor Baia, José Bosingwa and Deco will also play on the night as well as other famous Portuguese legends include Beto, Jorge Andrade, Dani, Tiago Mendes, Hélder Postiga, Nuno Gomes and Simão. They will be managed by another Champions League winner – Costinha.

They will be facing stiff competition from the World Legends squad that includes legends such as: Peter Schmeichel (Denmark), Cafu (Brazil), Javier Zanetti (Argentina), Diego Lugano (Uruguay), Leonardo Bonucci (Italy), Gaizka Mendieta (Spain), Youri Djorkaeff (France), Christian Karambeu (France), Marek Hamsik (Slovakia), Giorgos Karagounis (Greece), Krassimir Balakov (Bulgaria), Gheorghe Hagi (Romania), Edwin van der Sar (Netherlands) Henrik Larsson (Sweden), Shota Arveladze (Georgia), Javier Saviola (Argentina), and Ronaldinho (Brazil).

The match will be played in front of 60,000 fans at either Estádio da Luz (Benfica Stadium) or José Alvalade Stadium (Sporting Lisbon Stadium), which will be part of a big and exciting reveal in August when the Champions League schedule is released.

The Legends Charity Game aims to raise over €1,000,000 for a number of good causes based both abroad and in Portugal as the Football Family aims to give back to the families of the world. Funds will be raised for both international and national charities who help families and communities in need.

One of the international organisations that The Legends Charity Game will be raising funds for is the Ukrainian Red Cross Society (URCS). Every day, the Ukrainian Red Cross teams provide evacuation support, psychosocial and first aid, provide essential humanitarian relief, support temporary shelters, help with housing restoration, and spread awareness about unexploded ordnance risks. Ukrainian Red Cross volunteers and staff work in all regions of the country to support those who need it most.

Maksym Dotsenko, Director General of the Ukrainian Red Cross, comments: “The war in Ukraine continues, and unfortunately, millions of people still need support every day. We have no right to stop. Initiatives like the Legends Charity Game are not just about the funds raised. They are about compassion, and the understanding that the world stands by us. They are about solidarity that transforms into real help for those going through the toughest times. We are grateful to everyone who takes part.”

The Lisbon-based Cáritas Portuguesa, which offers critical support to marginalised communities fighting issues such as poverty and inadequate emergency relief, is also a charitable partner for the Legends Charity Game.

SBC Founder & CEO Rasmus Sojmark explains: “We are taking our charitable endeavours up a notch this year with the spectacular football match in order to raise a lot of money for some very worthy causes. By tying the match in with the SBC Summit in Lisbon the same week, we have found a way for the communities around football and business to help other communities that are facing unimaginable hardships.”

Tickets are available to purchase via the official website www.legendscharitygame.com. See Tickets will handle ticket management of the event.

Sponsorships and Hospitality are still available in support of the event and the charities. Some of the sponsors already confirmed include iGP, Soft2Bet, Sportingtech, Vegas Legends, Spribe, SmartSoft and Alea.

Sport Global Charitable Foundation is a restricted fund under the auspices of Prism the Gift Fund (UK registered charity with charity number 1099682). All of the profits from the Legends Charity Game will support the Sport Global Charitable Foundation’s beneficiary charities across a range of causes including the Ukrainian Red Cross Society and Caritas Portugal.

The post Legends Charity Game in Lisbon to raise millions for charity appeared first on European Gaming Industry News.

Latest News

International Chess Day: How India’s ancient game is evolving into a rising force in esports

Published

7 hours ago

July 18, 2025

George Miller

Reading Time: 4 minutes

Few games can boast a history as rich and enduring as chess. Originating in ancient India as Chaturanga, chess has evolved over centuries into one of the world’s most popular and celebrated sports. For a game with roots tracing back nearly 1500 years, it is rare to find renewed relevance in the digital era, but chess has done exactly that. Today, it thrives not only as a timeless sport of intellect and strategy but also as a modern source of entertainment, with millions of active players, vibrant communities, and massive global viewership.

This transformation has been driven by the meteoric rise of online chess, especially during the 2020 lockdown, which acted as an unexpected catalyst. The global success of the Netflix series The Queen’s Gambit, combined with the rapid growth of chess streamers across platforms like Chess.com, Twitch, and YouTube, propelled the game into mainstream pop culture.

Tournament series like PogChamps, launched by Chess.com in 2020, introduced chess to millions by featuring popular streamers and celebrities, each mentored by elite Grandmasters. Adding to this momentum were leading streaming personalities like Levy Rozman, known as GothamChess, and the Botez sisters, Alexandra and Andrea, who have built massive followings on both Twitch and YouTube. The accessible, educational, and entertaining style of these streamers has made chess more engaging and relatable to younger audiences than ever before.

Since then, online chess has seen explosive growth. In 2024 alone, Chess.com recorded over 7.6 billion games played. The platform has surpassed 200 million registered users globally, with India contributing over 9 million monthly active players and adding an average of 550,000 new signups each month. Beyond gameplay, viewership numbers have soared, with chess amassing 925 million organic views this year, reflecting an incredible 640 percent year-on-year growth. With its easy-to-play format and accessibility anytime, anywhere, chess has cemented itself as a universal sport for the digital generation.

This digital success naturally extended into the competitive esports world. The chess esports revolution accelerated in 2020 when world-renowned Grandmasters such as Qiyu Zhou, Hikaru Nakamura, and Andrew Tang joined established esports organizations like Counter Logic Gaming, Team SoloMid (TSM), and Cloud9 respectively, blending the traditions of chess with the excitement of competitive gaming.

The momentum continued when the International Chess Federation (FIDE) and Chess.com included chess in the inaugural Olympic Esports Week in 2023 in Singapore. This evolution reached a landmark moment with chess officially becoming part of the prestigious Esports World Cup (EWC) 2025 in Riyadh, with Norwegian legend Magnus Carlsen serving as the tournament’s ambassador. Organized in partnership with Chess.com, this year’s EWC features a prize pool of $1.5 million (approximately INR 12.8 crore), bringing together the world’s top chess players to compete in the fast-paced 10+0 rapid format, while representing leading esports organizations from across the globe.

Indian chess is making its presence felt on this grand stage. Grandmaster Arjun Erigaisi, signed with global esports organization Gen.G, has already secured his place at EWC 2025 through the Champions Chess Tour. The final four spots will be decided through the Last Chance Qualifier from July 24 to 26, where top Indian players, including Grandmasters Nihal Sarin and Aravindh Chithambaram, will compete.

Both Nihal and Aravindh have joined S8UL, a global powerhouse in esports and gaming content to compete at EWC 2025. S8UL is the only Indian organization selected among the 40 elite global teams in the Esports World Cup Foundation’s (EWCF) Club Partner Program. The organisation has earned its place to compete among the world’s best in Apex Legends and EAFC, and will also be fighting for qualification in Tekken 8 through the Last Chance Qualifier, further expanding its presence across multiple esports titles.

“It’s incredible to watch chess evolve from a quiet, traditional sport into a bold, global movement. Being part of S8UL has introduced me to the world of esports and content creation, opening up new ways to connect with people. Today, chess isn’t just about strategy, it’s about storytelling, culture and community. I’m proud to be part of this exciting shift, as the game steps into a whole new era,” shares Nihal Sarin.

The chess esports revolution in India is also being championed by NODWIN Gaming, a leader in South Asia’s esports and gaming ecosystem. The company recently announced a strategic partnership with Chess.com and ChessBase India aimed at building the future of chess esports in the country. This collaboration has already delivered remarkable success, most notably with the exclusive streaming of the recent World Chess Championship, where India’s Gukesh Dommaraju defeated Ding Liren to become the World Chess Champion. The event garnered over 24 million views, with peak concurrent viewership reaching 200,000.

Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming, says, “The rise of online chess shows how even the most traditional games can reinvent themselves in a digital-first world. Chess has always stood for intellect and discipline, but with streaming, new formats, and structured esports competitions, it’s now more accessible and entertaining than ever, especially for younger audiences.”

Over the years, NODWIN Gaming has consistently driven the mainstream growth of chess through innovative initiatives. The Chess Super League in 2021 brought together a unique mix of top international Grandmasters, leading Indian Grandmasters, International Masters, and promising junior players, offering fans a fresh, competitive, and entertaining viewing experience. Chess has also featured prominently at DreamHack Hyderabad, India’s largest gaming festival, further reinforcing its place within the broader gaming and esports ecosystem.

“At NODWIN, we’ve always focused on youth entertainment across gaming, esports, and digital culture. Chess fits right into that vision. We’re excited to keep reimagining how the game is experienced and to help it grow as a meaningful part of the broader digital entertainment ecosystem,” adds Akshat Rathee.

On the occasion of International Chess Day, it serves as a fitting reminder that chess has always been more than just a game in India. Its digital evolution has unlocked exciting new avenues for competition, community building, and content creation. The board may remain the same, but the game continues to evolve, inspiring new generations of players and fans in the digital era.

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