INTRALOT: 2003 PROFITS WILL REACH € 90 MILLION INTERNATIONAL EXPANSION CONTINUES
During INTRALOT’s annual shareholder’s meeting, the shareholders approved a dividend of € 0.76 per share (dividend yield of 6,1%), an increase of 18% compared to 2001.
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.
INTRALOT’s rapid international expansion and development into a powerful multinational entity with 26 subsidiaries and representative offices in 20 countries worldwide, were the key points stressed in the meeting.
In the past year, INTRALOT has expanded its customer’s base in Bulgaria (Eurofootball), Peru (Sociedad Beneficencia de Jaen), Turkey (Sportoto), Poland (Polski Monopol Loteryjny) and FYROM (Lotarija na Makedonija), while new contracts have been awarded to the company from existing clients in Yugoslavia (Lottery of Belgrade and Narodna Lutrija) and Moldova (Loteria Moldovei) for the operation of fixed odds betting.
Meanwhile, the new on-line system implementation in Chile (Polla Chilena de Beneficencia) and the successful launch of VLT’s in Romania for CNLR were among last year’s highlights. The new projects have strengthened INTRALOT’s position in the gaming market and their implementation within 2003 is expected to contribute considerably in 2003 financial results.
Mr. Constantinos Antonopoulos, CEO of INTRALOT pointed out for the second consecutive year, INTRALOT is ranked 2nd based on sales and 3rd based on pre tax profits among lottery suppliers worldwide. Furthermore, he added that pre-tax profits in 2003 are expected to exceed € 90 million, posting a 20% year-on-year increase, while the company’s financial results will be published according to the International Accounting Standards (IAS) from now on.
INTRALOT expects its consolidated first quarter 2003 sales to grow by 21,5% year-on-year to €92,7 million with pre-tax profits reaching €27,3 million an impressive increase of 39%.
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 2002 financial results, among lottery suppliers worldwide, and maintains a steady course towards the leading position in the global market. Today the company dominates in the European market, has secured an important position in the developing South American market and is expanding its presence in North America, S.E. Asia and Australia