INTRALOT REPORTS IMPRESSIVE GROWTH IN ITS PRE-TAX EARNINGS
INTRALOT achieved a 50% growth in its pre-tax profits, 16% in sales and 29% in EBITDA, for the year ended December 31, 2001.
While a high growth rate was maintained in the existing operations, INTRALOT kept seeking for further business development in the international markets, in order to expand its activities outside Europe and consolidate its presence in the global market. Towards this direction, the recent contracts in Chile and Peru have already established a strong position in Latin America.
According consolidated financial results, sales grew by 16% to € 282 million and the pre-tax profit increased by 50% to € 63,3 million. EBITDA grew by 29%, to € 74 million.These results were well above the management’s expectations that were set at the start of 2001.
INTRALOT's net cash position at the end of 2001 reached € 55 million, compared with € 69 million in 2000. The key cash flow statements highlights are: by the € 74 million EBITDA that was generated in the year, €10,7 million was paid as dividends, including a €10.7 million interim dividend for 2001, € 12 m for tax, € 35m for the 2000 winners payout, € 4 million for capital expenditure in the year and the remaining being largely interest, working capital differences and non-cash provisions.
INTRALOT's balance sheet remains very strong, with net assets of € 5m, negative capital employed and high shareholder returns with the return on equity in 2001 increasing to 58% from 51% in 2000.
Also, it is worth mentioning that apart from the 2000 general provision of € 17,5 million, INTRALOT made an additional provision of € 3,8 million. This non-cash item is related to general risks and is part of the cost of goods sold.
RnD expenses in 2001 increased by 56%, reaching 10% of the operating expenses, reflecting the company's effort to offer sophisticated, cutting edge technology products to the industry. Moreover, INTRALOT is intensively working to enrich its product portfolio with the use of new media applications and value added services.
Driven by the international investment programme, we expect group capital expenditure in 2002 to reach 25 million, in order to finance the Romania videolottery, the Chile and Peru projects and also the € 12 m cost of the acquisition in Bulgaria. (In Bulgaria, INTRALOT recently acquired 49% of Eurofootball, the local operator of fixed odds betting).
Beyond further improvement in profitability, in 2002 INTRALOT will focus on its strategy of expansion in the international market.