Press Release

INTRALOT REPORTS € 75,0 M PRE-TAX PROFITS FOR 2002
27/02/2003

INTRALOT reports € 75,0 m pre-tax profits for 2002

  • Revenues grew by 13,3% to319,3 m
  • EBITDA up 18,2% to €87,1 m
  • Profits before taxes up 20,3% to € 75,0 m

Athens, Greece –February 27th, 2003. INTRALOT achieved a 20,3% growth in its pre-tax profits, 13,3% in sales and 18.2% in EBITDA, for the year ended December 31, 2002.

INTRALOT achieved to sustain a high growth in its revenues, operating earnings, earnings per share and to maintain its ability to generate considerable operating cash flow.

1. Overview

Consolidated results:

 

million euros FY 02 FY 01 Change %
Sales 319,3 281,9 +13,3
EBITDA 87,1 73,7 +18,2
EBITDA Margin (%) 27,3% 26,1% +1,2
PBT 75,0 62,4 +20,3

 

Revenues, according to consolidated financial results, reached € 319,3 million compared to € 281,9 million in the same period last year, a 13,3% increase mainly driven by the fixed odds betting operation as well as the increase of system sales due to the implementation of the projects in Chile, Romania and Bulgaria. These results were in line with the management’s expectations that were set at the start of 2002.

Gross margin improved to 28,9% from 27,0% last year, mainly driven by higher domestic revenues and new international contracts.

EBITDA (earnings before interest, tax, depreciation and amortization) increased by 18,2 % to €87,1 million, compared to €73,7 million in the same period last year.

EBITDA margin improved and reached 27,3% (last year 26,1%) reflecting operational efficiency and the higher proportion of revenues coming from higher margin operations, such as fixed odds betting.

Profits before taxes recorded an increase of 20,3% by reaching €75,0 million compared to €62,4 million for 2001.

Net cash position has grown by an impressive 56,7% reaching €75,2 million, from €47,9 million for the previous period. The strong cash position demonstrates the company’s ability to generate significant free cash flow through the projects it undertakes and efficiently utilize its capital employed.

Expenses increased by 37,6% driven by a 34,6% increase in distribution cost expenses (due to the high effort in monitoring international expansion) and a 89,5% increase in RnD expenses, reflecting the company’s effort to offer sophisticated, cutting edge technology products to the industry.

Parent results:

million euros FY 02 FY 01 Change %
Sales 93,3 59,5 +57,9
EBITDA 61,1 47,2 +29,5
PBT 57,8 46,2 +25,0

 

Revenues increased 57,9% reaching €93,9 million from €59,5 million for the previous year. This increase was primarily driven by several new international contracts.

EBITDA increased by 29,5% reaching € 61,1 million, though, EBITDA margin decreased mainly due to the higher depreciation expenses for the year 2002, as well as due to higher proportion of systems in sales mix.

Income before taxes increased to € 57,8 million, an increase of 25,0 % compared to the previous period.

Cash stood at €38,1 million and the company has no borrowings.

Commenting on the results, INTRALOT’s Chief Executive Officer, Mr. Constantinos Antonopoulos said: “INTRALOT’s financial results are consistent with our expectations of accomplishing double-digit growth in both revenues and profitability. Furthermore, INTRALOT continues to expand its business in the international market, pursuing numerous contracts worldwide. The recent deals in Poland and FYROM once again signifies the company’s successful expansion strategy and the consolidation of our presence in the global market. During 2003, the impact of our internationalisation strategy is expected to boost the group’s profitability growth.”

 

2. INTRALOT’ s Highlights for 2002

The year 2002 was another successful year for INTRALOT continuing its international expansion, in Latin and North American markets.

In 2002 the annual sales of Betting Company S.A reached €130, 6 million recorded an approximately 14,9% increase compared to the previous year, remaining in line with INTRALOT’ expectations. The sales of fixed odds betting game reached €1,511 million, a growth of 15% achieving to maintain its leading position in fixed odds betting, worldwide. Furthermore, the annual sales of Instant Lottery S.A. recorded an increase of 1,7% by reaching €163,8 million compared to €161,1 in the same period last year.

In August 2002, the operation of INTRALOT’s new on-line system was realized in Chile, successfully. In Romania the installation of Video Lotto terminals continues to expand, while in 2002 more than 500 terminals were in operation.

In Bulgaria the Fixed Odds betting games’ had a 30% sales increase in the last year, which is expected to rise further when the operation of the new on-line system will take place by the end of the 1st Quarter of 2003.

Last but not least, the company has further established its international position in 2002. This was achieved by the undertaking of several new contracts including Peru, Turkey, Yugoslavia, Moldova, Poland and FYROM (February 2003), projects that will start materializing from the beginning of 2003.

 

About INTRALOT

INTRALOT is engaged in the development of integrated gaming systems and provides multiple services related to the design, development, operation and support of games. Based on its extensive know how, advanced product development specifications and substantial experience in organizing and operating lottery games, INTRALOT can offer its clients custom-made integrated solutions, which ensure maximum efficiency and absolute security. Following a highly successful period of rapid growth, INTRALOT is ranked 3rd in revenues and 2nd in profits, based on 2001 financial results, among lottery suppliers worldwide, and maintains a steady course towards the leading position in the global market. Today the company has secured an important position in the European and South American markets while is expanding its presence in North America and S.E. Asia.