Intralot rocked by Bulgaria Eurobet suspension
Intralot SPA has detailed a troubled start to 2020 trading, noting steep declines across all core operating metrics and divisions, as its corporate recovery programme has been impeded by multiple novel headwinds.
Publishing its Q1 2020 results, the Athens-listed gambling technology and lottery systems provider saw group turnover decline by 47% to €102m (Q12019: €193m).
The €90m turnover decline is primarily attributed to Intralot’s licensed B2C operations which were forced to discontinue its Eurobet Bulgaria sportsbook contract from mid-February onwards following its suspension by the Bulgarian government.
Intralot performance has been further strained by trading deficits related to the firm’s closure of its Turkish IDDAA sports betting unit during 2019.
The technology group’s trading woes were further compounded as lottery turnover fell by 15% €66.4m, due to sales declines recorded across all key contracts.
Facing multiple headwinds, Intralot saw group net revenues decline to €77m, reflecting a 30% decline on corresponding Q1 2019’s €109m.
Despite reducing its operating costs by €6m (18%), Intralot recorded a 50% decrease in Q1 EBITDA to €15m (Q12019: €30m) – as period losses widened to €18 (Q12019: – €13m).
In its statement, Intralot published a COVID-19 update confirming that it is monitoring May reopening developments. At present, the operator maintains that pandemic impacts for 2020 trading will be in ‘the vicinity of €25m EBITDA’ across the group.
The trading statement also included the debut address from Group CEO Christos Dimitriadis’ who is charged with leading the recovery of the firm’s main operating units.
“During the first quarter of the year, we have kept witnessing an increase in the handled wagers and an improvement of the performance of technology contracts in North America, demonstrating the dynamics of the region,” Dimitriadis said.
“Group revenue and EBITDA were mainly impacted by the regulatory changes in Bulgaria, the developments in Turkey and the impact of the pandemic in non-US jurisdictions.
Source: SBC News