Global lottery operator Intralot is back in the black. The company reversed its losses last year, reporting revenue growth across all of its divisions that reached €32.7 million (US$35.62 million).
Intralot has had a colorful couple of years as a global lottery operator. It has lost some contracts while gaining others and has also been embroiled in a number of controversial arrangements.
2020 brought a certain degree of destabilization to the Greece-based company that required intervention from its creditors. It now appears to be on track once again, as its full-year revenue for 2021 significantly improved.
Intralot Wins the Lottery
Intralot is both a B2B and a B2C lottery operator, as well as a technology supplier. It has struggled to find consistently solid ground for several years, but 2021 may have been the turning point. The company indicated in its latest financial health report that its overall turnover for last year increased by 20% over the prior year’s figure, reaching €414 million (US$451 million).
Last year, Intralot’s gross gaming revenue (GGR) was €335.3 million (US$364.97 million) across all operations. This 17.4% increase is a considerable gain, given its recent financial track record.
That jump covers both its B2B supplier segment, as well as its B2C direct operations. Improved performances in several key markets, including the US, helped its B2B operations. Its B2C activity saw a bigger gain, adding 33.3% over 2020’s results. The segment was responsible for €133.1 million (US$144.92 million) of the total turnover.
It also saw a year-on-year increase of 10.4% in its technology and support services. These accounted for €233.5 million (US$354.34 million) of the turnover.
B2B operations saw GGR of €281 million (US$30.49 million). GGR from direct operations added 26.9% to the prior year’s figures, closing at €49.6 million (US$54 million) for 2021. The year-on-year growth wasn’t at the level Intralot saw prior to the arrival of COVID-19, handicapped by low revenue margins in some areas and weak forex rates in others.
Increased Operational Costs Hinder Performance
Intralot explains that its total costs associated with sales were €294.5 million (US$320.65 million), which represented year-on-year growth of 8.3%. Deducting these costs from the turnover leaves a gross profit of €119.4 million (US$130 million).
That was a considerable improvement over 2020, representing a gain of 63.3%. However, there were other costs, as well. These totaled €118.8 million (US$129.3 million). However, Intralot found income from other operations – €21.6 million (US$23.5 million) – to help offset the losses.
Coupled with a strong rebound in key markets after the easing of [COVID-19] pandemic measures and cost-efficiencies achieved at HQ level, FY2021 results set the company [on] a stable course to tap on new opportunities and create value for all its stakeholders,” stated Intralot Chairman and CEO Sokratis P. Kokkalis.
EBITDA (earnings before interest, taxes, depreciation and amortization) climbed as a result of the stronger performance. The figure was €110.4 million (US$120.17 million), an increase of 66.8%.
For the bottom line, Intralot showed that it’s rebuilding and is setting itself up for a strong 2022. The final net profit for last year was $32.7 million (US$35.58 million), which followed a loss of €100 million (US$108.81 million) in 2020.
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