Press Release

INTRALOT S.A. ANNOUNCES ITS FINANCIAL RESULTS FOR THE TWELVE-MONTH PERIOD
17/02/2005

INTRALOT S.A. (RIC: INLr.AT, Bloomberg: INLOT GA), a leading international gaming company, today announces its financial results for the twelve-month period ending December 31st, 2004, prepared in accordance with Greek GAAP.

 

Consolidated Financial Statements For The 12 Months Ended December 31st, 2004

(in € million)

2004

2003

% Change

Revenues (Turnover)

325.9

320.4

1.7%

Gross Profit

133.8

114.5

16.9%

Gross Margin (%)

41.1%

35.7%

+5.3pps

EBITDA

112.2

102.3

9.7%

EBITDA Margin (%)

34.4%

31.9%

+2.5pps

EBT

94.4

88.7

6.4%

EBT Margin (%)

29.0%

27.7%

+1.3pps

 

Consolidated Revenues for the period reached €325.9m, posting a 1.7% increase compared to 2003.

EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) increased by 9.7% to €112.2m, compared to the same period last year.

EBITDA margin reached 34.4% (last year 31.9%) reflecting a more favourable sales mix coupled with international operations’ contribution and increased operational efficiency.

 

Profits Before Taxes (EBT) recorded an increase of 6.4% y-o-y by reaching €94.4m compared to €88.7m in 2003.

The cash balance reached €119.2m in 2004, while total bank debt reached €32.7m (€10.0m short-term and €22.7m long-term) in 2004 shaping the net cash position at €86.5m.

 

According to International Accounting Standards, revenues for the twelve-month period ending December 31st, 2004 stood at €327.0 m (+1.9% y-o-y), while profits before taxes (EBT) reached €100.2m (+5.0% y-o-y) and profits before interest, taxes, depreciation and amortization (EBITDA) reached €121.9m (+18.3% y-o-y).

 

Commenting on FY04 results INTRALOT’s CEO, Mr. Constantinos Antonopoulos,

noted:

“During fiscal year 2004 INTRALOT’s global presence grew substantially. Despite the fact that the company bearded increased start-up costs in order to fund its international growth, Earnings Before Tax (EBT) managed to grow by 6.4% compared to 2003. Fiscal Year 2004 was an important year since the company expanded substantially its full operation projects including the Maltese Lottery, the Peruvian lottery, the Bulgarian fixed odds betting, etc. Revenues from full operation projects contributed 39.7% to consolidated revenues in 2004 compared to 10.8% in 2003, rendering this category of projects the fastest growing within the Group.
Moreover, the recently announced strategic alliance with the Hilton Group and its betting and gaming subsidiary Ladbrokes, will permit INTRALOT to pursue further opportunities in the global gaming market. Therefore, we believe that the next years will mark INTRALOT’s expansion to full operation lotteries by utilizing its competitive advantages as a one-stop-shop for Lotteries. 

Last but not least, the company recently signed a contract in Russia for the management and operation of Moscow’s Olympic Lottery, a project in a market with a strong potential.

INTRALOT will continue to pursue business opportunities around the world, a factor that should strengthen further its global presence.”

2004 Highlights:

  1. In Bulgaria, Eurofootball posted very strong results in 2004 as the company’s revenues grew substantially compared to 2003, due to improvements in the sales network and the betting game’s increasing popularity.
  2. In Peru, INTRALOT de Peru installed an on-line system in December 2004 in the ex-Tektron POS. This should have a positive impact on sales as players’ winnings are now distributed much faster, increasing the recycling of winnings, and many draws will now be feasible.
  3. In Turkey, Inteltek has posted very positive results as the penetration of betting is increasing. By the end of 1Q05 the sales network will expand to 4,000 POS from the current 2,500, providing a better coverage of this large country.
  4. In Malta, operations started in Q304 and fixed odds sports betting was introduced in November. For 2005 we expect positive results from Malta, as it will be the first full year of operation in the country, while another new game (Kino) will be introduced.
  5. In Moscow, Russia, INTRALOT signed a contract to undertake the management and operation (50-50 joint venture with Malaysian Tanjong) of Moscow’s Olympic Lottery. This project is expected to start by the end of 3Q05.

INTRALOT, a public listed company on ASE, is a leading supplier of integrated gaming and transaction processing systems, innovative game designs and value added services to state-licensed gaming organizations and financial services providers worldwide. With 30 subsidiaries, 7 business offices and 1,500 people in 26 countries and revenues of €325.9m, the company dominates in Europe, has secured a strong position in South America and has established a foothold in North America, while expanding its presence in S.E. Asia and Australia. Following a highly successful period of rapid growth, INTRALOT currently ranks 3rd on revenues and 2nd on profits among lottery suppliers worldwide.