Uncategorized
INTRALOT announces strong EBITDA growth +29.2% y-o-y and positive Earnings after Tax at €3.1m in 1Q23
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, 2023, prepared in accordance with IFRS.
OVERVIEW
- Group Revenue at €89.5m (–8.4% y–o–y).
- EBITDA at €33.7m (+29.2% y–o–y) in 1Q23, with EBITDA margin reaching 37.7% from 26.7% in 1Q22.
- LTM EBITDA at €130.5m, up by 6.2% vs. FY22.
- Substantial growth in our US operations (Revenues +13.1%, EBITDA +31.6% y–o–y).
- EBT in 1Q23 shaped at €10.9m vs. €–2.3m in 1Q22.
- NIATMI (Net Income After Tax and Minority Interest) at €3.1m, vs. €–5.7m a year ago.
- Operating Cash Flow at €37.2m in 1Q23 (+115.3% y–o–y).
- Group Net CAPEX in 1Q23 was €7.2m.
- Group Cash at the end of 1Q23 at €109.2m, €6.8m higher vs. Dec–22.
- Net Debt at €471.6m at the end of 1Q23, lower by €18.9m vs. Dec–22 and €29.0m vs. 1Q22.
- Net Debt/ LTM EBITDA at 3.6x in 1Q23 vs. 4.0x in FY22.
Group Headline Figures
INTRALOT Chairman & CEO Sokratis P. Kokkalis noted:
We are extremely proud of first quarter robust organic Ebitda growth of 29% and a return to Net Earnings, along with healthy cash flows and significant reduction of Group Net Leverage Ratio down to 3.6x, providing additional momentum to INTRALOT’s successful turnaround story as a result of our consistent efforts in the past few years. With healthy financials and new technical capabilities offered through next generation solutions for Lottery digital transformation, in both the retail and online worlds, we look forward to timely addressing upcoming maturities, further improving our capital structure, and implementing an ambitious plan for strong and sustainable growth in the US and key markets around the world, creating value for all stakeholders.
OVERVIEW OF RESULTS
REVENUE
Although the reported consolidated revenue posted a decrease compared to 1Q22, leading to a total revenue for the three–month period ended March 31st, 2023, of €89.5m (–8.4%), excluding the impact from the discontinuation of Malta license, underlying revenue from continuing operations increased by 17.5%.
- From a contribution perspective, Lottery Games remain our largest contributor to Group turnover with a share of 60.4%, followed by Sports Betting with a share of 17.5%, VLTs monitoring with a share of 12.5%, Technology contracts with a share of 9.5%, and Racing with a share of 0.1%.
- Reported consolidated revenue for the three–month period is lower by €8.2m year over year. The main factors that drove top line performance per Business Activity are:
- €–20.4m (–64.5%) from our Licensed Operations (B2C) activity line with the variance driven by:
- Lower revenue in Malta (€–21.5m) due to the license expiration early July 2022 and
- Higher revenue in Argentina (€+1.1m or +10.9% y–o–y), driven by local market growth. In local currency, current year results posted a +104.5% y–o–y increase.
- €+6.3m (+11.4%) from our Technology and Support Services (B2B/ B2G) activity line, with the variance driven by:
- US operations’ increased revenue (€+4.6m or +13.1% y–o–y), mostly driven by the growth in Numerical and Instant games, further affected by the EUR depreciation (–4.3% versus a year ago – in average terms) and
- Higher revenue from rest jurisdictions (€+1.7m or +8.6%).
- €+5.9m (+54.2%) from our Management (B2B/ B2G) contracts activity line with the variance driven by:
- Strong momentum of our Turkish3 operations (€+5.8m), driven by Bilyoner’s improved performance, favored by the growth of the online market. In 1Q23, the local Sports Betting market expanded close to 2.2 times y–o–y. Performance in Euro terms was partially mitigated by the headwinds in Turkish lira (+28.1% Euro appreciation versus a year ago),
- Higher revenue from our US Sports Betting contracts in Montana and Washington, D.C. (€+0.1m) and
- Steady performance in Morocco.
- €–20.4m (–64.5%) from our Licensed Operations (B2C) activity line with the variance driven by:
GROSS GAMING REVENUE & Payout
- Gross Gaming Revenue (GGR) concluded at €83.4m in 1Q23, posting an increase of 4.5% (or €+3.6m) year over year. The improved performance across most key regions managed to absorb the loss of sales from Malta and the higher payout ratio in Argentina (–67.7% y–o–y on wagers from licensed operations4). 1Q23 Payout Ratio5 was higher by 3.5pps vs. 1Q22 (62.4% vs. 58.9%).
OPERATING EXPENSES & EBITDA
- Total Operating Expenses marginally increased by €0.9m (or +3.9%) in 1Q23 (€22.7m vs. €21.8m) driven by the improved top–line performance in USA and Turkey
- Other Operating Income from continuing operations ended at €7.8m presenting an increase of 37.0% y–o–y (or €+2.1m).
- EBITDA amounted to €33.7m in 1Q23, posting a double–digit growth of 29.2% (or €+7.6m) compared to 1Q22. The main drivers underpinning this performance are attributed to the strong growth in our US operations and the boosted performance in Turkey.
- On a yearly basis, EBITDA margin on sales climbed to 37.7%, from 26.7% in 1Q22 (+11.0pps).
- LTM EBITDA stands at €130.5m, up by 6.2% vs. FY22.
EBT / NIATMI
- EBT in 1Q23 amounted to €10.9m compared to €–2.3m in 1Q22, largely driven by the significant EBITDA contribution, the improved results from participations and investments, the gains on net monetary position and the benefit from the lower D&A.
- NIATMI in 1Q23 concluded at €3.1m compared to €–5.7m in 1Q22.
CASH FLOW
- Operating Cash–flow in 1Q23 amounted to €37.2m, increased by €19.9m, compared to 1Q22. The positive impact arising from the higher recorded EBITDA y–o–y and the favorable working capital movement was partially offset by the negative variance in tax payments.
- Net CAPEX in 1Q23 was €7.2m, higher by €2.9m compared to 1Q22, with US projects consuming most of the CAPEX needs.
- Net Debt, as of March 31st, 2023, stood at €471.6m, decreased by €18.9m compared to December 31st, 2022. Robust cash flow generation supported the continued deleveraging, with Net Debt / EBITDA dropping to 3.6x in 1Q23, from 4.0x in Dec–22. Positive gross debt movements include the capital payments towards the Term Loan in US, the lower interest accrued in comparison with Dec–22 and the positive FX impact on our USD denominated debt.
OUTLOOK/RISKS
The Company Management identifies significant opportunities in the growth of the Lottery and Sports Betting online markets and the expansion of regulated i–lottery markets, as well as from the recovery from the implications of the recent pandemic. Combined with the evolution of INTRALOT’s new technological solutions for Lottery digital transformation, the Company is in position to capture more technology projects with an increased profit margin compared to previous years.
World economies continue to navigate through macroeconomic uncertainties, with interest rates at high levels and relatively slow economic growth.
Increased interest rates have a direct impact on the financing servicing costs of the Intralot Group, while the outlook indicates that central banks may start to ease their monetary policy by the end of 2023.
nflation is declining more slowly than expected, having strong impact on most of the industries and regions. However, the gaming industry seems to be more resilient than other sectors of the economy, presenting above average growth in most regions.
The Management of the Company closely monitors geopolitical and economic developments and is ready to take all the necessary measures for protecting its operations.
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Uncategorized
Sends company confirmed its participation in the ICE London Conference 2024
ICE is the global showcase of innovative technologies, home to 600+ international brands providing access to products and services designed to enhance growth potential. Sends financial company confirmed its participation in the conference inviting to the brand’s stand for meetings.
The 6th of February is the opening day of ICE London 2024. The Sends team will spend three days of the conference meeting the current partners and establishing relationships with new ones in London. On its LinkedIn page, the company noticed that it had set up a stand to provide all the information about activity and business propositions, to meet with associates, and to engage with conference participants.
“Sends team is eager to meet the partners and new people at ICE London 2024. This event is iconic among gaming companies and market players. Organizers predict record attendance for the last London edition. We can’t miss this global event’s opportunities” , commented Anastasiia Pervushyna, Director/MLRO in Sends.
One of the shareholders (owners) of this company is Alona Shevtsova, a businesswoman, philanthropist, and active participant in the Ukrainian and UK FinTech community.
“Recent international industry events during the past year have already clearly shown the value and significance of in-person events for our industry and we expect that to be very evident in London as well”, Alona Shevtsova added.
Sends provides Internet acquiring, multicurrency personal and business accounts. Opening a SEPA/SWIFT/Faster Payments bank account is available within 48 hours after submitting the necessary documents. Sends is available in the web and app versions.
In 2025, the ICE London conference will relocate to Barcelona, Spain. The historic edition of the world’s largest and most international gaming expo ends in Great Britain. This country has hosted the event since 2013.
ICE London 2024 will be held from the 6th to 8th February at ExCeL London. To schedule a meeting with Sends representatives, please use [email protected] email or the conference application.
*Sends is a trade name of SMARTFLOW PAYMENTS LIMITED.
SMARTFLOW PAYMENTS LIMITED is registered in England and Wales (Company number 11070048).
Gaming
It’s time to speed up AI: Slotegrator presented new exciting solutions at iGB L!ve 2023
A new era in the iGaming industry has begun: AI-powered solutions are now becoming affordable. Slotegrator presented the new AI-powered capabilities of its turnkey online casino platform at iGB L!ve 2023 in Amsterdam.
Every year, Slotegrator presents its newest innovations at iGB L!ve. This year, the company added several new features to its turnkey online casino platform, basing the additions on the results of internal customer research and global market analysis.
Upcoming trends are a constant source of speculation in the iGaming industry. As an industry trendsetter itself, Slotegrator knows what to bet on; last year, the company predicted rapid AI growth, and these capabilities have already been integrated into the company’s solutions.
The upgrades include:
- The business intelligence (BI) module has become an Artificial BI module. Now it not only helps operators track the analytical data they need to make strategic decisions, but allows them to compare their project with others that operate in the same market. It’s an effective tool for analyzing competitors’ activities and to improve the entire business strategy.
- ChatGPT was integrated to offer operators 24/7 business consultation. While the strategy will ultimately be up to the casino operator, ChatGPT’s capacity to offer advice can prove invaluable.
- Fraud Detection (for collecting Big Data to reduce risk) with AI makes it easy for casino operators to set the parameters of what constitutes potentially fraudulent behavior and then segment players accordingly and take action when necessary.
Also, Slotegrator integrated a multiplayer chat function – an effective retention tool that emphasizes the value of live communication and offers opportunities for networking and creating player communities. The solution will see the addition of AI capabilities as well.
“This is just the first set of innovations. We are planning to use AI to boost our platform even further. The industry standards are changing, so the market can’t afford to use old tools now. Our participation in iGB L!ve 2023 demonstrated this completely,” says Dmytro Taran, COO at Slotegrator.
Uncategorized
LeoVegas Group granted three licenses to offer gaming software in Sweden
LeoVegas Group has been granted three five-year licenses by the Swedish Gambling Authority—known as “B2B licenses”— to develop and offer gaming software in Sweden. These licenses, effective from 1 July 2023, have been granted to the Group’s game studio Blue Guru Games and two platforms. Licenses are a prerequisite for providing software to licensed operators and an important step to prevent unlicensed gaming companies, consequently strengthening channelisation in the Swedish gaming market.
Since its inception, LeoVegas Group has experienced rapid growth, evolving from an operator into an integral player within the igaming industry’s value chain via game and platform development. Effective from July 1, 2023, under the Swedish Gambling Act, companies involved in the manufacture, provision, installation, or modification of game software utilised in online gaming are required to possess a license.
LeoVegas Group has now been granted three five-year licenses—referred to as “B2B licenses”—by the Swedish Gambling Authority. These licenses have been conferred upon the Group’s game studio Blue Guru Games, as well as the Group’s two platforms (PAM).
Gustaf Hagman, CEO of LeoVegas Group, said “We welcome the introduction of B2B licenses, a decisive step towards mitigating the impact of key gaming software being simultaneously provided to licensed operators and unlicensed operators targeting Swedish players. With the new regulations in force, it is now critical that authorities focus on those suppliers deliberately undermining the Swedish licensing system by facilitating unlicensed gaming“.
The 2019 initiation of Swedish gaming licenses marked a significant reform to regulate and supervise gaming companies operating in Sweden. This reform fortified regulations pertaining to marketing and consumer protection, while also ensuring substantial gambling tax revenues. The success of the B2B licensing system heavily depends on the Swedish Gambling Authority’s capacity to restrict key gaming software intended for licensed Swedish companies from simultaneously being used by unlicensed operators seeking to attract Swedish players.
On 1 May, LeoVegas Group announced its intentions to acquire game developer Push Gaming, which is also licensed by the Swedish Gambling Authority and holds two B2B licenses. The acquisition is expected to be completed in the third quarter of 2023.
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