INTRALOT S.A. : GROWTH OF PROFITS AT 22.3% FOR 9-MONTH 2003 - EBT REACH €87.8 MILLION
INTRALOT S.A. (INLr.AT), today announces its financial results for the 9-month period ending September 30th, 2003, prepared in accordance with Greek GAAP as well as International Accounting Standards.
INTRALOT managed to sustain growth in its revenues and profits, and maintained its considerable operating cash flow.
In the consolidated results:
Consolidated Interim Financial Statements
For The 9 Months Ended, 30th of September, 2003 (Greek GAAP)
|(€'m)||H1 2003||H1 2002||Change %|
|Revenues (Turnover )||254.1||227.1||11.9%|
|Gross Margin (%)||37.8%||32.6%||+5.2pps|
|EBITDA Margin (%)||34.5%||31.1%||+3.4pps|
|EBT Margin (%)||30.6%||28.0%||+2.6pps|
Revenues for the period grew to 254.1m, 11,9% up on 9M 2002.
EBITDA (earnings before interest, tax, depreciation and amortization) increased by 24.2% to €87.8m, compared to the same period last year.
EBITDA margin reached 34.5% (last year 31.1%) reflecting a more favourable sales mix coupled with international operations’ contribution and increased operational efficiency.
Profits Before Taxes (EBT) recorded an increase of 22.3% y.o.y. by reaching €77.7 million compared to €63.5 million for 9M 2002.
Net cash position has grown by 50.1% y.o.y. reaching €96.1m for the nine months (9M 2002:€64.0m), demonstrating the company’s ability to generate significant free cash flow through the projects it undertakes and efficiently utilize capital employed.
Interim divident: In 4Q03 the company declared an interim divident of €0.35 per share, increased by 20.7% compared to the previous year’s interim divident. This is in-line with the company’s strategy of paying high dividends and proves its strong cash generating ability.
According to International Accounting Standards, revenues for the period ended September 30th, 2003 stood at €254.1m while Profits Before Taxes (EBT) for the period reached €87.0m (€77.7m according to Greek Accounting Standards). The difference in the profitability according to the two methods of accounting is mainly due to differences in the depreciation methods.
Commenting on the nine-month results, INTRALOT’s CEO Mr Constantinos Antonopoulos, noted: “ The positive financials of the nine-month period of 2003 are a result of the company’s strong track record for delivering a wide breadth of high quality and innovative services to its customers, which have strengthened further the company’s international presence. Despite that INTRALOT’s subsidiary Instant Lottery SA stopped selling instant tickets as of September 8, 2003, Group sales posted an 11.9% increase in 9M03 as international sales more than covered for this shortfall. INTRALOT’s successful penetration of international markets is denoted by several factors, two of the most recent ones are the following:
- The offering of non-lottery transactions (i.e. bill payment and money transfer services) in Chile, rendering INTRALOT the second company in its sector to offer such a service.
- INTRALOT’s Cypriot subsidiary, INTRALOT Betting Services Ltd, announced its intention to submit a public offer for the acquisition of a controlling stake in Royal Highgate, a Cypriot Betting Company.
The INTRALOT Group will continue to pursue an aggressive international expansionary strategy, a factor that quarantees that the Group will continue to grow at a high rate.”
During the 3rd quarter of 2003, INTRALOT has continued its international expansion. Adding to Chile and Cyprus mentioned, in the US, the subsidiary INTRALOT Inc has been announced preffered bidder by the Nebraska State Lottery and it is expected to sign by the end of 2003.
In Turkey, INTRALOT and Turkcell recently established Libero SA, an alternative sales network offering gaming through fixed-line phones, mobile telephony, the Internet, etc.
In Moldavia, our subsidiary Loteria Moldovei signed an important contract with Voxtel, the largest mobile telephony provider in the country and a France telecom subsidiary, to offer Super Loto (a 5/35 lottery game) through SMS.
In Romania, Lotrom’s revenues from Videollotery (VLT) operations posted significant growth compared to the previous quarter. Moreover, the success of VLTs has spilled over to traditional lottery games, which posted a three-fold y-o-y increase in the 9M03 period.
In Bulgaria, Eurofootball continued to post satisfactory results in the first nine month period, with sales reaching €20.7m in 9M03. It’s worth noting that since INTRALOT installed the on-line terminal system sales increased by 100%.
In Poland, the subsidiary has currently expanded the sales network to 4,500 POS, which proves INTRALOT’s know-how to create sales networks in short time periods. The number of POS is expected to reach 15,000 within 2004.
In FYROM, the installation of a new intergrated on-line gaming system in all of “Lotarija na Makedonija’s” points-of-sale continued. Operations are expected to commence by the end of 2003.
In Peru, we are in a pilot-testing phase and expect to start operations by the end of 2003.
In the domestic operations (Greece), fixed odds betting (Stihima) gross revenues stood at €1,223.9m in 9M03, recording an approximate 16.2% y-o-y increase.
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 has secured an important position in the European and South American markets while is expanding its presence in North America and S.E. Asia.