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INTRALOT Announces First Quarter 2021 Financial Results
INTRALOT SA (RIC: INLr.AT, Bloomberg: INLOT GA), an international gaming solutions and operations leader, announces its financial results for the three-month period ended March 31st, 2021, prepared in accordance with IFRS.
Group Revenue at €102.0m in 1Q21 (+9.3% y-o-y).
EBITDA in 1Q21 at €24.4m (+55.4% y-o-y), while Adjusted EBITDA at €20.8m (+56.4% y-o-y).
NIATMI (Net Income After Tax and Minority Interest) from continuing operations at €-7.3m, improved by 57.8% compared to a year ago.
North America operations, under Intralot Inc., achieved significant y-o-y growth (Revenue +21.8%, EBITDA +81.8%).
Group OPEX in 1Q21 is better by 8.3% y-o-y, with Greek entities OPEX lower by 25.7% y-o-y, without taking into consideration the capital structure optimization expenses.
Operating Cash Flow at €21.6m in 1Q21 (+127.4% y-o-y).
Group Net CAPEX in 1Q21 was €2.9m, lower by 48.2% compared to a year ago.
Group Cash at the end of 1Q21 at €90.6m.
Net Debt at €643.7m at the end of 1Q21.
The COVID-19 pandemic impact for 1Q21 has been restrained in the vicinity of €1.5m at Group’s EBITDA level.
In May 2021, INTRALOT announced the sale of its 80% stake in “Intralot do Brasil”, to SAGA, the only other shareholder of Intralot do Brasil, holding 20% of the company, for a total cash consideration of €0.7m. INTRALOT will continue to provide its gaming technology to Intralot do Brasil following closing of the transaction.
Also in May 2021, INTRALOT announced that its subsidiary in The Netherlands INTRALOT BENELUX BV, in co-operation with the Nederlandse Loterij, completed the transition of the operator’s full gaming portfolio enabled by the innovative LotosX platform, and rolled out 4,300 Photon terminals along with its robust signage solution empowering further the retail channel of Nederlandse Loterij’s Lottery games and Sports Betting offering.
Group Headline Figures
| (in € million) | 1Q21 | 1Q20 | % | LTM | ||
| Change | ||||||
| Revenue (Turnover) | 102.0 | 93.3 | 9.3% | 373.5 | ||
| GGR | 80.5 | 74.3 | 8.3% | 299.1 | ||
| OPEX1 | -23.2 | -25.3 | -8.3% | -93.1 | ||
| EBITDA2 | 24.4 | 15.7 | 55.4% | 74.9 | ||
| EBITDA Margin (% on | 23.9% | 16.8% | +7.1pps | 20.1% | ||
| Revenue) | ||||||
| EBITDA Margin (% on GGR) | 30.3% | 21.1% | +9.2pps | 25.0% | ||
| Adjusted EBITDA3 | 20.8 | 13.3 | 56.4% | 63.3 | ||
| Capital Structure | -5.0 | -0.3 | – | -11.5 | ||
| Optimization expenses | ||||||
| D&A | -16.0 | -18.2 | -12.1% | -66.3 | ||
| EBT | -3.4 | -14.9 | 77.2% | -82.6 | ||
| EBT Margin (%) | -3.3% | -16.0% | +12.7pps | -22.1% | ||
| NIATMI from continuing | -7.3 | -17.3 | 57.8% | -94.1 | ||
| operations | ||||||
| Total Assets | 612.1 | 755.3 | – | – | ||
| Gross Debt | 734.3 | 753.1 | – | – | ||
| Net Debt | 643.7 | 611.1 | – | – | ||
| Operating Cash Flow from | 21.6 | 9.5 | 127.4% | 49.8 | ||
| total operations | ||||||
| Net CAPEX | -2.9 | -5.6 | -48.2% | -33.3 | ||
INTRALOT Chairman & CEO Sokratis P. Kokkalis noted:
“First quarter results show strong Revenue and EBITDA growth, driven by robust operational performance and successful implementation of cost containment measures, while maintaining a strong cash position. At the same time, we continue to sharpen our focus on strategic markets with higher margins, launch new operations, such as Croatia, and roll out our new product portfolio, overall pointing to a very healthy operational performance for 2021.”
- OPEX presented exclude the capital structure optimization expenses.
- The Group defines “EBITDA” as “Operating Profit/(Loss) before tax” adjusted for the figures “Profit/(loss) from equity method consolidations”, “Profit/(loss) to net monetary position”, “Exchange Differences”, “Interest and related income”, “Interest and similar expenses”, “Income/(expenses) from participations and investments”, “Write-off and impairment loss of assets”, “Gain/(loss) from assets disposal”, “Reorganization costs” and “Assets’ depreciation and amortization”.
- Calculated as Proportionate EBITDA of fully consolidated entities including EBITDA from equity investment in Taiwan.
OVERVIEW OF RESULTS
REVENUE
Reported consolidated revenue posted an increase compared to 1Q20, leading to total revenue for the three-month period ended March 31st, 2021, of €102.0m (+9.3%).
- Lottery Games was the largest contributor to our top line, comprising 63.0% of our revenue, followed by Sports Betting contributing 19.1% to Group turnover. VLTs represented 8.7% and Technology contracts accounted as well for 8.7% of Group turnover, while Racing constituted the 0.5% of total revenue of 1Q21.
- Reported consolidated revenue for the three-month period is higher by €8.7m year over year. The main factors that drove top line performance per Business Activity are:
- €+1.3m (+3.9%) from our Licensed Operations (B2C) activity line, with the increase attributed mainly to higher revenue in:
- Malta (€+2.8m), with the variance attributable mainly to the COVID-19 impact at the end of the first quarter of 2020.
The increase in our Licensed Operations activity line was partially mitigated by the lower performance in:
- other Licensed Operations (referring to Brazil and Argentina), which dropped by €-1.5m, impacted mainly by the FX currency translation.
- €+5.3m (+65.4%) from our Management (B2B/ B2G) contracts activity line with the variance driven by:
- the surplus from our Turkish operations (€+3.1m), driven by Bilyoner’s improved top line performance, favored by the strong growth of the online market. In 1Q21, the local Sports Betting market expanded close to 2.0 times y-o-y, with the online segment representing close to 92% of the market at the end of 1Q21. Performance in Euro terms was partially mitigated by the headwinds in Turkish lira (32.3% Euro appreciation versus a year ago – in YTD average terms),
- the launch of US Sports Betting in Montana and Washington, D.C. in late 2020 (€+1.3m), and
- Morocco’s (€+0.9m or +31.2% y-o-y) improved performance, due to the COVID-19 impact in late 1Q20.
- €+2.1m (+4.0%) from our Technology and Support Services (B2B/ B2G) activity line, with the increase attributed mainly to:
- our US operations’ increased revenue (€+5.5m), mainly driven by the strong growth in our Lottery operations, while further boosted by a significant jackpot in January 2021, despite the effect from the adverse USD movement (9.1% Euro appreciation versus a year ago — in YTD average terms) and the lower merchandise sales in the current period.
The increase in our Technology and Support Services activity line was partially mitigated by the lower performance in:
- The Netherlands (€-1.2m), impacted by the revised commercial terms which affected half of the first quarter of 2020 vs. full quarter effect in 2021,
- Australia (€-1.1m), driven mainly by one-off merchandise sales in 1Q20, as well as the phasing-out of COVID-19 impact, while partially offset by the favorable currency movement, and
- sales from other jurisdictions (€-1.1m), impacted mainly by lower merchandise sales in the current period and the COVID-19 impact.
- Constant currency basis: In 1Q21, revenue — net of the negative FX impact of €13.2m — reached €115.2m (+23.5% y-o-y).
GROSS GAMING REVENUE & Payout
- Gross Gaming Revenue (GGR) from continuing operations concluded at €80.5m in 1Q21, posting an increase of 8.3% (or €+6.2m) year over year, attributable to:
- the increase in the non-payout related GGR (€+7.7m vs. 1Q20), driven mainly by the increased top line contribution of our US operations, as well as the improved performance of Bilyoner in the current period.
The GGR increase was partially counterbalanced by:
– the drop in our payout related GGR (-10.9% y-o-y or €-1.5m), driven mainly by the higher average payout ratio across all licensed operations in 1Q21 and especially in Malta, combined with the adverse FX impact from our licensed operations in Latin America (+2.8% y-o-y on wagers from licensed operations4). 1Q21 Average Payout Ratio5 increased by 5.5pps vs. LY (64.0% vs. 58.5%), affected mainly by the higher weighted contribution from our operations in Malta.
- Constant currency basis: In 1Q21, GGR — net of the negative FX impact of €10.1m — reached €90.6m (+21.9% y-o-y).
OPERATING EXPENSES6 & EBITDA7
- Total Operating Expenses decreased by €2.1m (or 8.3%) in 1Q21 (€23.2m vs. €25.3m in 1Q20). The variance is largely driven by the lower operating expenses across many key regions, such as the US and Morocco, and especially in the HQ, following cost savings and COVID-19 mitigation actions. The decrease was further supported by lower D&A in the current period, while it was only partially offset by the higher advertising costs in Bilyoner.
- Other Operating Income from continuing operations concluded at €5.5m, presenting an increase of 52.8% y-o-y (or €+1.9m), driven by higher equipment lease income in the USA.
- EBITDA, from continuing operations, amounted to €24.4m in 1Q21, posting an increase of 4% (or €+8.7m) compared to the 1Q20 results from continuing operations. 1Q21 Organic performance8 was boosted by the significant growth of our US operations in both Lottery and the new Sports Betting stream, Bilyoner’s improved performance and the operating expenses containments across many jurisdictions. The EBITDA increase was partially counterbalanced by Malta’s higher average payout ratio in 1Q21, a one-off revenue recognition in Australia in 1Q20, the revised commercial terms in Netherlands, as well as the adverse FX impact8 of currencies movement across many key markets (mainly US and Turkey).
- Licensed Operations Revenue also include a small portion of non-Payout related revenue, i.e., value-added services, which totaled €0.8m and €0.4m for 1Q21 and 1Q20, respectively.
- Payout ratio calculation excludes the IFRS 15 impact for payments to customers.
- Operating Expenses analysis excludes expenditures related to capital structure optimization.
- EBITDA analysis excludes Depreciation & Amortization, and expenditures related to capital structure optimization.
- CPI adjusted for Turkey and Argentina (proxy).
- On a yearly basis, EBITDA margin on sales improved to 23.9%, compared to 16.8% in 1Q20 (+7.1pps), as a result of revenue growth (mainly in the US and Turkey), combined with operating expenses containments across many key regions (mainly in HQ, US and Morocco).
- LTM EBITDA rose to €74.9m, up by 13.1% vs. FY20.
- Constant currency basis: In 1Q21, EBITDA, net of the negative FX impact of €3.9m, reached €28.3m (+80.3% y-o-y).
EBT / NIATMI
- EBT in 1Q21 totaled €-3.4m, compared to €-14.9m in 1Q20, with the key drivers of the improvement being:
- the impact of the increased EBITDA (€+8.7m vs. 1Q20), as described above,
- the better FX results (€+4.2m vs. 1Q20), as a result of the USD and other currencies movement against Euro, as well as the positive effect from the reclassification of FX reserves to Income Statement applying IFRS 10, and
- the decreased D&A (€+2.2m), due to increased impairments in the previous periods.
With the increase at EBT level being partially offset by:
– the higher capital structure optimization expenses in 1Q21 (€-4.7m).
- Constant currency basis: In 1Q21 EBΤ, adjusted for the FX impact, reached €+1.0m, from €-14.1m in 1Q20.
- NIATMI from continuing operations in 1Q21 concluded at €-7.3m compared to €-17.3m in NIATMI from total operations in 1Q21 amounted to €-8.2m (improved by €9.4m vs. a year ago), including the performance of the discontinued operations in Bulgaria and Peru.
- Constant currency basis: NIATMI (total operations) in 1Q21, on a constant currency basis, reached €-10.3m from €-17.4m in 1Q20.
CASH-FLOW
- Operating Cash-flow in 1Q21 amounted to €21.6m, increased by €12.1m, compared to 1Q20. Excluding the operating cash-flow contribution of our discontinued operations (mainly Bulgaria) and the capital structure optimization expenses paid, the cash-flow from operating activities is higher by €15.9m vs. a year ago and is largely driven by the positive variance in Income Taxes paid (€+12.2m), attributed to Income Tax returns during the current period vs. payments in 1Q20, and the higher recorded EBITDA y-o-y from continuing operations (€+8.7m), while partially offset by the adverse working capital movement of €-5.5m (€-7.3m in 1Q21, vs. €-1.8m in 1Q20).
- Adjusted Free Cash Flow9 in 1Q21 increased by €24.4m to €4.1m, compared to €-20.3m a year The main contributors to this variance were the positive swing in the Income Taxes Paid (€+12.2m), following an income tax return in 1Q21, the higher recorded EBITDA (€+8.7m y-o-y), and the lower Net Dividends paid (€+2.5m), driven mainly by Inteltek’s dividend paid in 1Q20 as part of settlement procedures after its contract discontinuation. Excluding Parent company tax audit payments and returns, as well as Inteltek’s contract discontinuation impact in the previous period, 1Q21 Adjusted Free Cash Flow stands at €-1.1m, or €+8.3m above 1Q20 levels.
- Calculated as EBITDA – Maintenance CAPEX – Cash Taxes – Net Cash Finance Charges (excluding refinancing charges – Net Dividends Paid; all finance metrics exclude the impact of discontinued operations.
- Net CAPEX in 1Q21 was €2.9m, compared to €5.6m in 1Q20, significantly decreased following the completion of prior years’ investments and projects. Headline CAPEX items in 1Q21 include €0.9m towards R&D and project pipeline delivery, and €0.9m in the US. All other net additions amount to €1.1m for 1Q21. Maintenance CAPEX accounted for €0.8m, or 28.0% of the overall capital expenditure in 1Q21, from €1.6m or 28.1% in 1Q20.
- Net Debt, as of March 31st, 2021, stood at €643.7m, decreased by €7.4m compared to December 31st, 2020. The Net Debt movement was impacted primarily by the Net Investments (€-13.3m, referring mainly to Intralot de Peru sale impact), the bonds IFRS treatment positive effect (€-9.3m), as well as an income tax return in the first quarter of 2021 related to the Parent Company tax audit payments of the previous periods (€-5.2m). The Net Debt decrease was only partially offset by the Restricted Bank Deposits for the period (€+3.2m), the payments towards Capital Structure Optimization (€+3.1m), and the investments towards the growth of our business, mainly for our projects in the US and Croatia (€+1.9m). Normal course of business in the Net Debt movement reflects March coupon payments and the adverse Working Capital, that fully offset the positive Operating Cash Flows.
CORONAVIRUS PANDEMIC IMPACT UPDATE
The economic fallout from COVID-19 continued to affect business activities in the beginning of 2021, and restrictions in most of the regions across the world were still enforced to cope with the spread of the pandemic. However, as vaccinations are progressing, governments have loosened COVID-19 measures after months of lockdowns, and gradually re-opened economic activities.
Gaming market in most of the regions where we operate has started to improve, while US Lottery market shows high degree of resilience. Based on the current performance of our operations in the first months of 2021 and the actions undertaken by most of our subsidiaries, no significant EBITDA impact is expected post 1Q21 from the pandemic. In any case, the scale and magnitude of COVID-19 impact for 2021 is continuously assessed and all containment measures assumed in 2020 remain intact and have been enhanced in order to absorb the potential impact in the financial results of 2021. The extent to which the COVID-19 pandemic may impact the financial performance in 2021 will depend on future development of the pandemic and the efficiency of the actions taken by the governments. This uncertainty will require us to continually adapt our strategy and initiatives and continuously assess the situation.
The health and safety of our team remains our top priority. With this in mind, we have immediately complied with all measures imposed by local governments and used technology in order to immediately enable a substantive majority of our personnel to work and collaborate remotely, without affecting the performance and quality standards of the Group.
9
RECENT/ SIGNIFICANT COMPANY DEVELOPMENTS
- On January 14th, 2021, the Company announced that OPAP exercised its two-year extension option of the contract with INTRALOT for the continuation of the collaboration of the two companies in the field of numerical lotteries and services from August 2021 to July 2023.
- On February 8th, 2021, INTRALOT announced that it has reached a binding agreement with Nexus Group in Peru to sell its entire stake of 20% in Intralot de Peru SA, an associate of INTRALOT Group, which was consolidated through the Equity method, for a cash consideration of USD 21.0m. In addition, the Company signed a three-year extension of its current contract with Intralot de Peru SA through 2024, to continue to provide its gaming technology and support services. The transaction was completed on February 24th, 2021, with the net cash consideration, after taxes and transaction expenses, amounting to USD 16.2m.
- On March 23rd, 2021, INTRALOT announced the amendment of the contract of INTRALOT Maroc, a subsidiary of the INTRALOT Group acting as games operator in Morocco, with La Marocaine Des Jeux et des Sports (MDJS), a state lottery offering sports betting and other games of chance in Morocco, which was signed in June 2019. According to this amendment, counterparties agree to reduce the duration of the contract, which was initially effective for an 8-year term, ending 31/12/2022.
- On May 14th, 2021, INTRALOT announced that it has reached a binding agreement with “SAGA CONSULTORIA E REPRESENTAÇÕES COMERCIAIS E EMPRESARIAIS” (“SAGA”) in Brazil to sell its entire stake in “Intralot do Brasil Comércio de Equipamentos e Programas de Computador LTDA” (“Intralot do Brasil”), representing 80% of the company’s voting capital. SAGA is the only other shareholder of Intralot do Brasil holding 20% of the company. INTRALOT will continue to provide its gaming technology to Intralot do Brasil following closing of the transaction. The total cash consideration for the stake sale amounts to €0.7m.
- On May 26th, 2021, INTRALOT announced that its subsidiary in The Netherlands INTRALOT BENELUX BV, in co-operation with the Nederlandse Loterij, completed the transition of the operator’s full gaming portfolio enabled by the innovative LotosX platform. Additionally,
INTRALOT has rolled out 4,300 Photon terminals along with its robust signage solution empowering further the retail channel of Nederlandse Loterij’s Lottery games and Sports Betting offering.
10
APPENDIX
Performance per Business Segment10
YTD Performance
Performance per Geography
Revenue Breakdown
| (in € million) | 1Q21 | 1Q20 | % | ||
| Change | |||||
| Europe | 34.4 | 39.0 | -11.8% | ||
| Americas | 55.0 | 49.7 | 10.7% | ||
| Other | 16.8 | 14.0 | 20.0% | ||
| Eliminations | -4.2 | -9.4 | – | ||
| Total Consolidated Sales | 102.0 | 93.3 | 9.3% |
Gross Profit Breakdown
| (in € million) | 1Q21 | 1Q20 | % | ||
| Change | |||||
| Europe | -1.8 | 2.5 | – | ||
| Americas | 14.4 | 9.1 | 58.2% | ||
| Other | 14.2 | 9.8 | 44.9% | ||
| Eliminations | -0.7 | -2.3 | – | ||
| Total Consolidated Gross Profit | 26.1 | 19.1 | 36.6% |
- Part of the US revenue that concerns SB management, has been included under the category “Game Management”. The rest of the US revenue is included under the “Technology” business segment.
11
| Gross Margin Breakdown | ||||||
| % | ||||||
| 1Q21 | 1Q20 | |||||
| Change | ||||||
| Europe | -5.2% | 6.4% | -11.6pps | |||
| Americas | 26.2% | 18.3% | +7.9pps | |||
| Other | 84.5% | 70.0% | +14.5pps | |||
| Total Consolidated Gross Margin | 25.6% | 20.5% | +5.1pps | |||
INTRALOT Parent Company results
- Revenue for the period decreased by 55.3%, to €4.6m, with the decrease attributable mainly to one-off equipment sales in 1Q20, as well as lower rendering of services towards the Group’s subsidiaries in the current period.
- EBITDA shaped at €-4.5m from €-2.4m in 1Q20, variance affected mainly by the revenue decrease, while partially offset by the containments in the Company’s operating expenses.
- Earnings after Taxes (EAT) at €-0.1m from €-10.2m in 1Q20.
| (in € million) | 1Q21 | 1Q20 | % | LTM | ||||
| Change | ||||||||
| Revenue | 4.6 | 10.3 | -55.3% | 42.0 | ||||
| Gross Profit | -3.1 | 0.1 | – | 12.3 | ||||
| Other Operating Income | – | – | – | 0.2 | ||||
| OPEX11 | -5.1 | -6.9 | -26.1% | -25.7 | ||||
| EBITDA11 | -4.5 | -2.4 | -87.5% | 0.7 | ||||
| EAT | -0.1 | -10.2 | 99.0% | -30.5 | ||||
| CAPEX (paid) | -0.5 | -1.9 | -73.7% | -6.4 |
- Operating Expenses and EBITDA presented exclude the expenditures related to capital structure optimization.
12
SUMMARY OF FINANCIAL STATEMENTS
Group Statement of Comprehensive Income
| (in € million) | 1Q21 | 1Q20 | % | LTM | |||||||||
| Change | |||||||||||||
| Revenue | 102.0 | 93.3 | 9.3% | 373.5 | |||||||||
| Gross Profit | 26.1 | 19.1 | 36.6% | 82.3 | |||||||||
| Other Operating Income | 5.5 | 3.6 | 52.8% | 19.5 | |||||||||
| OPEX | -23.2 | -25.3 | -8.3% | -93.1 | |||||||||
| EBITDA | 24.4 | 15.7 | 55.4% | 74.9 | |||||||||
| Margin | 23.9% | 16.8% | +7.1pps | 20.1% | |||||||||
| Capital Structure Optimization | -5.0 | -0.3 | – | -11.5 | |||||||||
| expenses | |||||||||||||
| D&A | -16.0 | -18.2 | -12.1% | -66.3 | |||||||||
| EBIT | 3.4 | -2.9 | – | -2.8 | |||||||||
| Interest expense (net) | -11.8 | -12.0 | 1.7% | -48.2 | |||||||||
| Exchange differences | 3.7 | -0.5 | – | -5.4 | |||||||||
| Other | 1.3 | 0.5 | 160.0% | -26.2 | |||||||||
| EBT | -3.4 | -14.9 | 77.2% | -82.6 | |||||||||
| NIATMI | -8.2 | -17.6 | 53.4% | -96.8 | |||||||||
| NIATMI continuing | -7.3 | -17.3 | 57.8% | -94.1 | |||||||||
| NIATMI discontinued | -0.9 | -0.3 | -200.0% | -2.7 | |||||||||
| Group Statement of Financial Position | |||||||||||||
| (in € million) | 1Q21 | FY20 | |||||||||||
| Tangible Assets | 138.9 | 134.3 | |||||||||||
| Intangible Assets | 200.7 | 202.0 | |||||||||||
| Other Non-Current Assets | 19.4 | 19.2 | |||||||||||
| Inventories | 24.2 | 25.7 | |||||||||||
| Trade and Other Short-term Receivables | 138.3 | 151.5 | |||||||||||
| Cash and Cash Equivalents | 90.6 | 100.0 | |||||||||||
| Assets Held for Sale | – | 16.2 | |||||||||||
| Total Assets | 612.1 | 648.9 | |||||||||||
| Share Capital | 47.1 | 47.1 | |||||||||||
| Other Equity Elements | -270.6 | -269.3 | |||||||||||
| Reserves from profit / (loss) recognized directly in other | – | -0.6 | |||||||||||
| comprehensive income and are related to assets held for sale | |||||||||||||
| Non-Controlling Interests | 1.5 | 3.7 | |||||||||||
| Total Shareholders’ Equity | -222.0 | -219.1 | |||||||||||
| Long-term Debt | 480.5 | 476.2 | |||||||||||
| Provisions/ Other Long-term Liabilities | 20.8 | 21.5 | |||||||||||
| Short-term Debt | 253.8 | 274.9 | |||||||||||
| Other Short-term Liabilities | 79.0 | 95.4 | |||||||||||
| Total Liabilities | 834.1 | 868.0 | |||||||||||
| Total Equity and Liabilities | 612.1 | 648.9 | |||||||||||
13
Group Statement of Cash Flows
| (in € million) | 1Q21 | 1Q20 | |
| EBT from continuing operations | -3.4 | -14.9 | |
| EBT from discontinued operations | 0.5 | – | |
| Plus/less Adjustments | 23.3 | 31.1 | |
| Decrease/(increase) of Inventories | -1.3 | 1.0 | |
| Decrease/(increase) of Receivable Accounts | 13.5 | -0.2 | |
| (Decrease)/increase of Payable Accounts | -17.6 | -2.0 | |
| Income Tax Paid | 6.6 | -5.5 | |
| Net Cash from Operating Activities | 21.6 | 9.5 | |
| Net CAPEX | -2.9 | -5.6 | |
| (Purchases) / Sales of subsidiaries & other investments | 13.3 | -0.5 | |
| Restricted bank deposits | -3.2 | -0.7 | |
| Interest received | 0.3 | 0.6 | |
| Dividends received | – | 1.0 | |
| Net Cash from Investing Activities | 7.5 | -5.2 | |
| Cash inflows from loans | – | 27.5 | |
| Repayment of loans | -11.2 | -27.2 | |
| Repayment of Leasing Obligations | -1.4 | -1.8 | |
| Interest and similar charges paid | -21.4 | -22.1 | |
| Dividends paid | -5.1 | -7.9 | |
| Net Cash from Financing Activities | -39.1 | -31.5 | |
| Net increase / (decrease) in cash for the period | -10.0 | -27.2 | |
| Exchange differences | 0.6 | -1.9 | |
| Cash at the beginning of the period | 100.0 | 171.1 | |
| Cash at the end of the period from total operations | 90.6 | 142.0 | |
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The sprawling tendrils of the player refund drama look to finally have ensnared Curacao, much in the way they have imperilled Malta for the past few years, after a local court ruled that a refund owed to a player in Austria must be paid by an operator based on the Caribbean island.
Experts believe the ruling marks a turning point for Curacao in the long-running player refund saga — the attempts by players to reclaim all of their losses from offshore operators in European grey markets.
Last week, the highest legal authority of the Dutch Caribbean islands — The Joint Court of Justice of Aruba, Curaçao, Sint Maarten, and of Bonaire, St. Eustatius and Saba — found in favour of an Austrian gambler.
The individual had originally won their case back in 2023, when an Austrian court ruled that she was entitled to all of the €25,518.42 lost to Raging Rhino N.V., which operates the brand LuckyDays.
This ruling is just one of thousands that have been issued in Austria and Germany over the past five years, with hundreds of millions of euros in refunds either already paid out via judgements and settlements or, more likely, blocked by gambling-friendly jurisdictions.
For the most part, this wave of pro-player judgements has created issues for Malta, where a larger number of current and former grey market gambling providers are headquartered.
That ultimately led to the infamous Bill 55, a piece of legislation which empowers judges in Malta to block rulings from foreign courts against local gambling companies, on the grounds that permitting the refunds to go ahead would violate the country’s public order.
Bill 55 remains highly controversial and is coming under sustained pressure from a series of cases currently being heard before the Court of Justice of the European Union (CJEU).
Order maintained
Curacao has also traditionally offered a friendly environment for online gambling operators, albeit with a considerably more tarnished reputation than Malta.
So it has come as a surprise to many observers that judges in the Raging Rhino case have ultimately sided with lawyers attempting to transfer a refund judgement from Austria.
According to reports in the Curacao Chronicle, Raging Rhino attempted to match the Maltese defense, arguing that allowing the refund to go through would violate Curacao’s public order
Judges also refused to allow the gambling company to re-litigate the case in any way, asserting that their task was simply establishing whether the foreign judgment could be safely recognised in Curacao.
Raging Rhino were also ordered to pay €2,286.72 in legal costs, the Chronicle said.
A tipping point
Although the volume of cash involved in this case is relatively minor, it represents the tip of a potentially vast iceberg that could cost operators in Curacao huge sums.
Lawyers and litigating funding companies have spent years finding potential clients and buying up claims from anyone who gambled in Austria and Germany with an operator without a local licence.
That includes plenty of gambling companies in Curacao, which has long hosted a bustling offshore gambling community.
Until recently, that sector was almost completely hidden by opaque layers of regulation, however recent reforms on the island have forced operators to apply for new licence and, in so doing, join a public register that displays their status.
According to that register, Raging Rhino’s Curacao licence expired on March 26, but it has an application which is currently being assessed.
Although this new era of transparency remains the target of criticism, last week’s ruling demonstrates that forcing companies out into the open is also opening them up to greater legal risk.
The Raging Rhino judgement is blood in the water for the many legal teams and litigating funding firms that have hundreds, if not thousands, of player refund cases on their books.
With major support from Malta, lawyers representing gambling companies have been fairly successful in protecting their clients, following an initial wave of settlements.
Although the tide may be gradually turning against the industry, thanks to the CJEU, pro-industry lawyers still believe that player lawyers who have spent considerable sums acquiring claims are desperate to find ways to generate income while they remain stymied by Bill 55.
A weak point in the armour of Curacao operators, who have for so long resisted any international enforcement, is likely to spur a flurry of new claims and attempts to have judgments transferred from Germany and Austria.
At least one expert in online gambling law believes that this judgment will effectively end all operations in Germany and Austria for Curacao-based companies.
This would mirror the experience of Malta, which saw its local operators pushed out of Austria by the threat of refund judgments.
Maltese firms that chose not to apply for an online slots or betting licence have also exited Germany.
With judges having established a precedent that European refund judgments can be transferred to Malta, a wave of similar cases is sure to follow, raising serious questions about the status of Curacao as a haven for the offshore online gambling industry.
The post Landmark Player Refund Ruling Threatens Curacao appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
London is a city built on institutions that never needed to announce themselves. The law firms on Chancery Lane, the private clubs in St. James’s they endure not through attention, but through trust accumulated over decades. Quietly. Consistently. Without a rebrand every two years. Which makes London an interesting backdrop for the affiliate industry’s annual conversation with itself. Because iGaming, by contrast, has mastered the art of attention.Conference floors are fluent in volume: oversized visuals, stacked merchandise, account managers with pitch decks and a practiced sense of urgency. Every programme is premium. Every stand is exclusive. What it rarely produces is what the spreadsheet actually needs: long-term ROI, partner retention, relationships worth more in year three than month one.
The Market Learned to Perform Premium. It Forgot to Practice It.
When an entire market adopts the same vocabulary premium, VIP, exclusive, top-tier the signal stops carrying information. The gifting mechanics follow the same logic: items chosen for the photograph rather than the relationship. With this approach the partner is the audience, not the counterpart.
The structural problem is this: markets that compete on noise attract partners who respond to noise, and lose them the moment a louder offer comes along. Attention is not loyalty. Activation is not retention.
High-performing affiliate partnerships share a different architecture: predictability over promises, honest communication over promotional language, consistency whether a relationship is new or years old. Strong partners don’t leave for marginal CPA improvements when the relationship itself has value they’d be giving up. That dynamic reduces churn, extends LTV, and compounds over time in ways no single activation can replicate.
Manor as Model: The Economics of Restraint
PlayamoPartners’ presence at iGB London stand H-60, 1–2 July operates on this logic. The Manor concept takes the British manor as its central metaphor: not a venue, but a model of relationships. There is an etiquette, a code, standards that everyone inside understands. Membership implies alignment.
The aesthetic is restraint. The underlying logic is economic. Trust, in this industry, has a measurable ROI that most programmes never stop to calculate because they’re too busy announcing it.
The Code of Honor: Giving the Industry Its Memory Back
At the centre of the Manor experience is a physical book not a lookbook or catalogue, but a Code of Honor: partner feedback, written by partners themselves, accumulated across events and years. A physical record implies that what partners say is worth keeping in a form that persists that the relationship has a history worth preserving.
The iGaming industry has become extremely efficient at forgetting. Campaigns replace campaigns. Account managers cycle through. Programmes pivot quarterly. The Code of Honor is a deliberate counter to that tendency. It treats reputation not as a marketing asset but as something that grows through repeated honest interaction. An archive of trust, built over time.
Recognition Over Raffle
Partners who contribute to the Code of Honor become eligible for recognition items including a MacBook Neo 13, iPhone Air, and iPad Air. Come by on 02.07 at 14 o’clock and collect your prize.
The framing matters. These are not raffle prizes. Recognition is relational: you are who you are, and that is acknowledged. One is a CPA model applied to gifting. The other is how relationships between people who respect each other actually function.
The partners the Manor is designed for are not the ones who show up for a giveaway they’re the ones who show up to engage, to leave something of their own behind, to participate in the ongoing record of what this programme is.
Continuity of Standards
This approach isn’t new for PlayamoPartners. Past recognition has included Samsonite, Hugo Boss, TAG Heuer, Cartier, YSL. At iGB London, partners at H-60 will find Cartier wallets and MacBooks among the acknowledgements.
Premium gifting delivered consistently, to partners aligned with programme standards, across multiple years and conferences, reads differently from a one-time budget line. It signals a stable set of values with no particular need for an audience.
What Remains After the Conference Floor Clears
Rates, tools, tracking platforms are table stakes. Any serious programme can match them within a quarter. What cannot be quickly replicated is culture: honest communication, payments that arrive without chasing, account managers who know your business well enough to have an opinion about it.
Manor of PlayamoPartners arrives at iGB London not as an activation, but as a position. Behind it: a system, a reputation, a code of conduct that predates this event and will outlast it.
Stand H-60 | 1–2 July | iGB London
Contact the team:
- Edgar @Nertevics — CEO, PlayamoPartners
- Slava @AMOSLAVA — Affiliate Manager Team Lead
- Anna @anna20bet — Affiliate Manager
- Andrey @Andrey_playamo — Affiliate Manager
- Barbara @BarbaraPlayamoPartners — Affiliate Manager
The post Loud Launches, Quiet Exits Why Partner Culture Outlasts Partner Acquisition appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
PhilWeb Corporation has reinforced its position as a technology-driven company at SiGMA Asia 2026, highlighting its continuing transformation through digital innovation, scalable platform solutions and strategic technology investments aligned with the rapidly evolving digital economy in Asia.
As one of the Philippines’ established technology and platform providers, PhilWeb participated in SiGMA Asia 2026 to showcase its long-term vision centered on digital infrastructure, operational scalability, customer engagement technologies and future-ready platform development. The company’s presence at the international event reflects its broader strategy of strengthening its role within the growing technology, digital entertainment and fintech ecosystem in the region.
With more than 25 years of operational experience, PhilWeb continues to evolve alongside changing market demands and technological advancements. Over the years, the company has steadily expanded its capabilities through investments in platform modernization, integrated digital systems, payment technologies and data-driven operational tools designed to support scalable and efficient business operations.
As industries across Asia continue to undergo digital transformation, PhilWeb sees increasing opportunities in technology-enabled ecosystems where connectivity, automation, customer experience and operational efficiency play increasingly important roles in long-term business growth.
At SiGMA Asia 2026, the company highlighted initiatives focused on strengthening its digital ecosystem through improved platform capabilities, enhanced payment integration infrastructure and technology solutions designed to support seamless experiences across both physical and digital customer environments.
PhilWeb also emphasised the growing importance of integrated platforms and scalable digital operations as consumer behaviour continues to shift toward more connected and technology-driven experiences. The company continues to adapt to these evolving trends by exploring innovations that improve accessibility, operational flexibility and customer engagement.
Participation at SiGMA Asia 2026 also provided PhilWeb with opportunities to engage with international technology firms, fintech companies, digital infrastructure providers, payment solutions companies and regional business partners as it continues to strengthen its long-term growth strategy.
Beyond technology expansion, PhilWeb continues to prioritise governance, compliance-driven systems, operational transparency and sustainable business.
The post PhilWeb Showcases Technology-Driven Growth Vision at SiGMA Asia 2026 appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
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