Thursday May 19,2016 : INTRALOT IMPACTED BY FOREX FLUCTUATIONS
Mixed bag of first quarter 2016 results.
Intralot’s financial report for the three month period to March 31, 2016 delivered a 3.6 percent drop in consolidated revenues to Euro 335.2 million (Q1/2015: Euro 347.7 million), attributed to strong currency exchange fluctuations. If adjusted for constant currency, the company said it has produced an 8.6 percent rise in revenue to Euro 377.7 million.
Gross profit margin remained stable at 19.4 percent. Margin expansion that took place in countries such as the US, Turkey and Argentina was counterbalanced by margin contraction mainly in Azerbaijan and Jamaica. Payout for the Group in the respective period increased by 2.6 percent.
Numerical Games, Intralot’s largest contributor to the top line, comprised 46.9 percent of group revenues, an increase of 1.4 percent, followed by a decrease of 8.3 percent in sports betting to 38.4 percent of Group turnover.
VLTs/AWPs represented 3.0 percent of Group turnover, an increase of 68.2 percent, followed by Technology contracts decreasing 6.7 percent now representing 9.4 percent. Racing represents 2.3 percent, down 38 percent.
During the first quarter period, Intralot systems handled Euro 6.9 billion wagers worldwide, an increase of 2.7 percent driven by North America with wagers up 28.6 percent. Africa increased 10.6 percent, East Europe grew 0.3 percent, Asia decreased 6.2 percent, South America and West Europe decreased by 4.1 percent.
Intralot Group chief executive officer Antonios Kerastaris commenting on the results said:
“Intralot’s strong financial performance in Q1, despite strong forex headwind, confirms that our operational model evolution and the alignment of our portfolio offering with market trends generate measurable results.
“Our strategy for growth through local partnerships in new and existing markets is guided by expanding and diversifying our portfolio with complementary products and market share.
“Additionally, our unique understanding of traditional industry verticals such as lottery and betting retail, as both technology provider and operator, drives our new product roadmap towards a universal customer experience.”