Gaming and lotteries giant Intralot has reported a 55.5 per cent drop in revenue for the first half of 2020, compared to year 2019, according to the company’s newly-released interim financial results.
The Greece-based operator has pinpointed coronavirus Covid-19, along with special issues in Bulgaria and Turkey, as the main drag on its current financial situation.
Revenue for HI (to June 30) fell to €168.2m (£150.6m/US$199.2m), while earnings from Intralot’s division handling licensed operations (B2C) plunged by a massive 74.9 per cent to €57.7m (£51.85m/US$68.21m).
The main push down the economic precipice came from Bulgaria, where Eurofootball’s operations were shut down in February and its licence suspended.
The Bulgarian red card slashed revenue for the division by €140.3m (£126m/US$165.86m). Covid-19 disruption in Malta led to €17.6m (£15.82m/US$20.8m) lost revenue. And there was also a disappointing €14m (£12.58m/US$16.55m) drop in revenue from key South American markets in Brazil and Argentina.
Meantime, management revenues for Intralot’s B2B and government contracts division plummeted 73.2 per cent to €11.8m (£10.60m/US$13.95m), underlining the financial impact of losing a Turkish sports betting contract in April 2019.
Understandably Intralot Group CEO Christos K. Dimitriadis attempted to put a positive spin on results.
Despite the set-backs of Turkey and Bulgaria, Intralot had achieved “significant growth” in its US operations, said Dimitriadis.
“We have maintained strong liquidity levels and are prepared for the future and the new realities that are being established worldwide,” he stressed.
And in much better news, revenue decline was much less pronounced in the Greek giant’s tech and support services division. Revenue fell just 5.5 per cent to €98.8m (£88.8m/US$116.78m), making it significantly the largest contributor to group income.
Intralot’s new lottery contracts in North America–in the US states of Illinois and Ohio and with Canada’s British Columbia Lottery Corporation—are also looking good.
But the company’s gross gaming revenue was down 38.8 per cent, year-on-year, to €133.5m (£120m/US$157.8m).
And gross profit fell almost 60 per cent to €30.6m (£27.5m/US$36.17m) and EBITDA for H1 was down 54.5 per cent to €26.7m (£24m/US$31.56m).
After other financials, including €25.1m (£22.55m/US$29.67m) in interest payments and a €4.6m (£4.13m/US$5.44m) loss from investments, were factored in; Intralot posted a €42.8m (£38.46m/US$50.6m) loss before tax, compared to a €1.5m (£1.35m/US$1.77m) loss in H1 2019.