INTRALOT ANNOUNCES ITS 1st QUARTER 2010 RESULTS - STABLE GROWTH EBITDA
INTRALOT S.A., the leading international gaming company, today announces its financial results for the three-month period ending March 31st 2010, prepared in accordance with IFRS.
Consolidated Revenuesfor the period decreased by 10.9% compared to 1Q09, reaching €228.0m. For comparison reasons it is worth noting that excluding the financial results of the new Turkish contract for both Q1 2009 and Q1 2010, on a like-for-like basis consolidated Group revenues posted a minor decrease of 5.9%.
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)decreased by 26.3% to €34.0m compared to €46.1m in 1Q09, while excluding the financial results of the new Turkish contract EBITDA increased by 4.1%, indicating the strength of the underlying business. In addition, by adjusting the financial results for the new gaming tax imposed in Bulgaria on a like-for-like basis, EBITDA posted an increase of 9.8% in Q1 2010 as compared to Q1 of the previous year.
Earnings Before Taxes (EBT), were €27.7m, 37.4% lower than 1Q09, whileEarnings After Taxes and after minorities (EAT-am)decreased by 31.5% to €15.1m from €22.1m in 1Q09. Compared to Q4 2009 EBITDA and net profits have stabilized in the first quarter of 2010, despite the adverse betting results of Q1 2010.
The Group posted a robust positive operating cash flow of €26.8m in Q1 2010 compared a negative €9.1m in Q1 of the previous year. The Group’s net debt remained practically stable compared to the 12-month period of 2009 despite capex spending of €25.1m in the first quarter of 2010.
Revenues for the parent company were €26.1m in 1Q10, 4.4% lower than 1Q09. EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) for the periodincreased by 37.6%reaching€7.0m, and Earnings After Taxes (EAT)were €2.8m.
Commenting on 1Q10 results INTRALOT Group CEO, Mr. Constantinos Antonopoulos, stated: “INTRALOT’s first quarter for the fiscal year 2010 was quite strong posting revenues of €228m and EBITDA of €34.0m, despite adverse betting results in some countries that pushed payouts higher in the quarter and the increase of the gaming tax in Bulgaria that took place since the beginning of this year.
Moreover, we must note that the financials of SVL, the Jamaican gaming company acquired in early 2010, have not been included in our first quarter 2010 results, something that will take place in the 2nd quarter due to typical procedural issues.
The Company has entered into a new stable course of growth following the new Turkish betting contract. Also, the continued growth of developing markets adds to our optimism since INTRALOT has invested early in these markets worldwide.
Up to now, the economic crisis in developed markets and the increases in gaming taxation in some jurisdictions without serious analysis of the effects of such actions both had a negative effect on the company’s performance. However, as Governments have started to understand that in order to increase their proceeds from gaming they have to create new gaming opportunities rather than increase taxes, the crisis is expected to have a positive impact on the Company in the near future.
The INTRALOT Group is carefully monitoring a number of very interesting developments that are taking place or are expected to take place in gaming markets around the world and is moving ahead with substantially less risk in capturing new opportunities and expanding its leading position in the gaming sector”.
INTRALOT, a public listed company, is the leading supplier of integrated gaming and transaction processing systems, innovative game content, sports betting management and interactive gaming services to state-licensed gaming organizations worldwide. It’s broad portfolio of products & services, its know-how of Lottery, Betting & Video Lottery operations and its leading-edge technology, give INTRALOT a competitive advantage which contributes directly to customers’ efficiency, profitability and growth. With presence in more than 50 countries, with approximately 5.000 people and revenues of €903.6 million for 2009, INTRALOT has established its presence on all 5 continents.