Press Release

INTRALOT ANNOUNCES RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30th, 2005
10/11/2005

ATHENS, Greece – November 10th, 2005 – INTRALOT SA (RIC: INLr.AT, Bloomberg: INLOT GA), the leading international gaming company, today announces its financial results for the nine-month period ending September 30th, 2005, prepared in accordance with IFRS.

 

REVISION OF INTRALOT GROUP GUIDANCE

 

The Company is in the pleasant position to revise upward its FY 2005 guidance to revenues of €500m and EBT of €150m from €500 m and €120m, respectively, as it was provided during the Annual General Meeting of our shareholders in late April 2005. The reasons for this change is the robust performance of international operation, especially Turkey, Romania and Bulgaria and the stronger than expected profitability of Stihima in Greece.

 

INTERIM DIVIDEND

 

The Company’s Board of Directors has approved the distribution of a €0.23 interim dividend per share, compared to last year’s interim dividend per share of €0.20 (adjusted to share split). This is a 15.0% increase, in-line with INTRALOT’s dividend payout policy.

 

OVERVIEW

Consolidated results:
 

Consolidated Financial Statements For The 9 Months Ended September 30th, 2005

(in € million)

9M05

9M04

%Change

Revenues (Turnover)

363.1

230.2

57.7%

Gross Profit

159.1

116.3

36.8%

Gross Margin (%)

43.8%

50.5%

-6.7pps

EBITDA

124.2

89.7

38.5%

EBITDA Margin (%)

34.2%

38.9%

-4.7pps

EBT

122.8

85.2

44.1%

EBT Margin (%)

33.8%

37.0%

-3.2pps

EAT (after minorities)

56.9

49.2

15.6%

EAT Margin (%)

15.7%

21.4%

-5.7pps

Consolidated Revenues for the period reached €363.1m, posting a 57.7% increase compared to 9M04. Revenues from INTRALOT’s International Subsidiaries amounted to €271.7m, a 74.8% contribution to nine-month consolidated sales, compared to €117.7m (or 51.3%) in 9M04.

 

EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) increased by 38.5% to €124.2m, compared to the same period last year.

Earnings Before Taxes (EBT) recorded an increase of 44.1% y-o-y by reaching €122.8m compared to €85.2m in 9M04.

 

Finally, Earnings After Taxes and after minorities (EAT-am) increased by 15.6% y-o-y to €56.9m from €49.2m in 9M04. EAT margin settled at 15.7% due to the increased contribution of full operation projects, which carry lower margins than management projects.

 

The cash balance reached €113.2m in 9M05, while total bank debt was €47.1m (€19.6m short-term and €27.5m long-term), shaping the net cash position at €66.1m.

 

Commenting on 9-month 2005 results INTRALOT’s CEO, Constantinos Antonopoulos, noted:

Once again we continue to deliver improved results, by improving both revenues and Earnings. This continued growth of INTRALOT has again validated our corporate vision and model

Our 9-months revenue growth rate was healthy worldwide. We were particularly encouraged by the improvement in the growth rate of our international business, which grew approximately 96,8%  percent versus last year's 9-months period. Particularly, revenues from full operation projects, the fastest growing sector of our business, contributed 44,3% to INTRALOT’s consolidated revenues.

We continue to see strong results from our operations in Turkey, Bulgaria and Romania, with sales exceeding our expectations. Finally, winning the contract with the Montana Lottery confirmed and strengthened our position in the US market

The combination of aggressive business strategies, new product development and global expansion allow INTRALOT to deliver significant enhancements in shareholder value, and the interim dividend represents our commitment to them.”

 

New contracts

    1. In the US, INTRALOT signed a contract with the Montana Lottery for the supply of the Lottery’s new On-Line and Instant Gaming System. Commencing on March 31, 2006, the term of the contract is for seven (7) years with three 1-year extension options. The contract with Montana Lottery, following the Nebraska successful operation, confirms and strengthens our position in the U.S market.

INTRALOT, a public company listed on the ASE, is a leading supplier of integrated gaming and transaction processing systems, innovative game content and value added services to state-licensed gaming organizations worldwide. It’s broad portfolio of products & services, its know-how of Lottery, Betting & Video Lottery operations, its experience in sports games and its leading-edge technology, give INTRALOT a competitive advantage, which contributes directly to customers’ efficiency, profitability and growth. With 33 subsidiaries, 8 business offices and more than 1,900 people in 32 countries and revenues of €500 million for 2005(E), INTRALOT’s footprint straddles five continents.