The Greek lottery provider Intralot disclosed in its 2022 yearly report that its income declined by 5.1% from the previous year, reaching €392.8 million (£344.5 million/$428.5 million). However, earnings before interest, taxes, depreciation, and amortization (EBITDA) saw an increase of 11.3% to €122.9 million.
The organization reported a net profit of €11.9 million on this revenue base, a decrease of 31.9% from €17.5 million in 2021.
Intralot’s total debt decreased by €6.7 million to €490.5 million, currently representing 4.0 times EBITDA, compared to 4.5 times the figure reported by the company last year. The majority of the company’s debt stems from financing obtained during the pandemic period when a significant portion of its operations were unable to function normally.
The supplier’s operational expenses increased by 3.9% from €96 million to €99.8 million, which Intralot attributed to the unfavorable impact of foreign exchange rate changes. The US dollar strengthened against the euro in 2022, leading to higher costs for the company’s US operations. Intralot stated that this change offset cost savings achieved in other areas of the company’s central offices.
The company’s chairman and CEO, Sokratis P. Kokkalis, characterized the outcomes as a consequence of a successful restructuring effort undertaken in 2021-22.
Intralots financial performance in 2022 displayed robust momentum, with all key financial metrics continuing to improve as the firm achieved its main business targets and enhanced growth and effectiveness through streamlined capital structure and managerial restructuring.
Kokkalis also noted that the €129 million equity financing secured by the company in 2022 played a crucial role in attracting US fund Standard General as a strategic partner. The executive stated that these funds were utilized to regain complete control of the company’s US subsidiary, Intralot Inc.
In the company’s third-quarter 2022 financial report, the firm outlined its long-term strategy, including expanding Intralots digital operations, particularly in North America. Subsequently, Kokkalis stated that this expansion would be a priority for the business, alongside repaying the company’s outstanding debt.
“Given our considerably improved situation, we anticipate capitalizing on new growth opportunities in the US and other areas to become one of the leading gaming technology providers worldwide and endeavor to refinance the 2024 notes.”
Looking Forward
Intralot highlighted a challenging economic climate in its 2023 outlook, emphasizing the ongoing dual issues of inflationary pressures and central bank tightening of interest rates.
Intralot is burdened by significant debt, making them highly vulnerable to fluctuations in interest rates. They explicitly state that this directly impacts the expense of their financial offerings.
They also mentioned that “sluggish economic expansion and salary inflation pressures have resulted in elevated operational expenses, indirectly affecting our group’s commercial endeavors.” They are meticulously monitoring the situation and are prepared to take any necessary steps to safeguard their enterprise.
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