Intralot, the Greek lottery and betting operator, continues to show results in red, so it expects to increase its revenues with more sports betting opportunities in the United States market.
In the third quarter, gross gaming revenues reported by Intralot were € 99.8 million, which means a decrease of 2.7% over the same period of 2018. Worse still were the profits that fell 29% to € 20.1 million. During 2019, the company’s revenues have fallen 3.3% to € 329m, coupled with a 19.7% decrease in earnings to € 78.8m.
Sports bets with 44.1% of its annual income represent Intralot’s largest source of income, followed by lottery games with a 42.9% stake. While IT Products & Services, had a 6.1% stake, ahead of the video lottery terminals, which added 4.3% and just 2.6% for the races.
The negative annual performance of the Greek giant is due to problems in several of its main markets, among which Bulgaria stands out. Revenue there fell by € 22,000,000 as a result of low returns on sports betting.
The Argentine crisis did not help either, since the hyperinflation caused a decrease in its revenues by € 18.4m in euros, although the results saw a 20% increase in Argentine pesos.
These results were defended by Intralot CEO Sokratis Kokkalis, noting that the company is still working to compensate for the loss of some very important contracts, such as the provision of technology to the Turkish state sports betting operator.
Kokkalis revealed that Intralot is currently carrying out its ‘three-point strategy’: cost reduction, sale of non-essential assets and signing of new technology agreements.
On the sale of assets, Kokkalis referred to the recent sale of Intralot’s stake in Gamenet, the Italian gaming operator to a subsidiary of the Apollo Global Management hedge fund. For this sale, Intralot will obtain an additional € 78 million that will be used to offset the company’s net debt at September 30 of 634 million euros.
Another 20 million euros will be entered into Intralot’s bank accounts for the sale of its stake in Hellenic Lotteries to the Greek operator OPAP.
During the third quarter of this year, things improved for Intralot in the United States by signing two sports betting contracts, one in New Hampshire and the other in the District of Columbia, whose launches are expected early next year.
The launch of DC mobile bets has been delayed, as it is a game monopoly that faces legal challenges, due to the controversial bidding of bidding games without offer in which Intralot participates.