INTRALOT: 1H10 FINANCIAL RESULTS - INCREASE IN SALES & PROFITS FOR 2Q10 (31/08/2010)
INTRALOT S.A., the leading international gaming company, today announces its financial results for the six month period ending June 30th 2010, prepared in accordance with IFRS.
Consolidated Revenues for the 2Q10 reached €312.9m, increased by 37.2% in comparison with the 1Q10, while posting an increase of 10.8% reaching €540.9m in 1H10 compared to €488m in 1H09. EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) in 2Q10 reached €36.8m, postingan increase of 8.1% compared to 1Q10, while in 1H10 were€70.8m, compared to €91.1m in the same period in 2009.Earnings After Taxes and after minorities (EAT-am)were €15.4min 2Q10 (adjusted for the €5.3m windfall tax in 2Q10), slightly higher than in 1Q10 (15.1m), while in 1H10 were 30.6m from €42.0m in 1H09.Profitabilityin 1H10, in comparison with the same period of 2009,was impacted by the previous Turkish betting contract operated for 2 months in 2009, the 50% increase in the gaming tax in Bulgaria that is effective as of the beginning of 2010 and the windfall tax.
Operating cash flowreached €45.8min the first semester of 2010, posting an increase of more than 77%.
Revenues for the parent company in 1H10 were €75m, 45.8% higher than 1H09.EBITDA(Earnings Before Interest, Tax, Depreciation and Amortization) for the periodincreased by 60.1% to €15.2m from €9.5m in 1H09, and Earnings After Taxes (EAT)reached €20.2m from €10.6m in 1H09 posting an increase of 91% y-o-y.
Commenting on the quarterly results INTRALOT Group CEO, Constantinos Antonopoulos, noted: “All results are very much in-line with our expectations and strategy for an improvement in operating cash flow generation and stabilization of profits in 2010.
Regarding sports betting payout in 2Q10, and especially in relation to the Football World Cup, although we didn’t see excessive payouts as in previous such events, the relatively high payouts of 1Q10 showed very slight deterioration in most of the countries we operate.
Since our previous results reporting, other developments include the extension of the OPAP contract, the acquisition of a minority stake in Favorit, a Russian betting operator, the extension of the New Zealand VLT monitoring system, an agreement with net Entertainment to offer Internet casino games in Italy, and our first supply contract in China. Finally, following a tender process, our first contract in the US, the Nebraska State lottery contract has been awarded to a competing company.
As previously mentioned, the Company has entered into a stable course of business that is expected to continue in the next quarters, which is evident in the Group’s net profits. In addition, numerous important projects that were in the implementation phase in 1H10, such as Morocco, Minas Gerais in Brazil, 3 US state lotteries, the VLTs in Italy, will start to contribute gradually to our results over the next quarters.”