Intralot Reports Strong EBITDA Growth Despite Net Profit Decline in 2022

The Greek lottery operator, Intralot, revealed in its yearly financial statement for 2022 that, despite a 5.1% drop in earnings to €392.8 million (£344.5 million/$428.5 million), its earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed by 11.3% compared to the previous year, reaching €122.9 million.

Based on this revenue figure, the organization reported a net profit of €11.9 million, a decrease of 31.9% from the €17.5 million earned in 2021.

Intralot’s total debt decreased by €6.7 million to €490.5 million, currently at 4.0 times EBITDA, compared to 4.5 times the previous year. The company’s substantial debt is attributed to financing acquired during the COVID-19 pandemic, a period when many of its operations were disrupted.

The supplier’s operating expenses increased by 3.9% to €99.8 million from €96 million, which Intralot attributed to the negative impact of foreign exchange rate fluctuations. In 2022, the US dollar strengthened against the euro, increasing the cost of the company’s US operations. Intralot stated that this change offset cost reductions in other areas of the company’s main office.

The company’s Chairman and CEO, Sokratis P Kokkalis, characterized these outcomes as evidence of the successful restructuring efforts undertaken in 2021-22.

IntroBets fiscal year 2022 exhibited robust performance, with all key financial metrics continuing to advance. The enterprise achieved its core business goals and bolstered its growth and efficiency through endeavors to optimize its capital structure and reorganize management.

Kokalis also emphasized that the company’s €129 million equity financing in 2022 played a crucial role in attracting the American fund Standard General as a strategic partner. According to the executive, the proceeds from these activities were utilized to regain full control of the company’s American subsidiary, IntroBet Inc.

In the company’s third quarter 2022 financial report, the company outlined its long-term strategy, including expanding IntroBets digital business, particularly in North America. Kokalis subsequently stated that this expansion would be a top priority for the company, along with repaying the company’s outstanding debt.

“Considering our substantially improved position, we anticipate capitalizing on new growth opportunities in the United States and other global regions as one of the leading gaming technology providers worldwide, and we are striving towards refinancing the 2024 notes.”

**2023 Forecast**

IntroBet highlighted the challenging economic environment in its 2023 forecast, emphasizing the ongoing dual issues of inflationary pressures and central bank tightening of interest rates.

Intralot is deeply in debt and extremely vulnerable to fluctuations in interest rates. They stated that interest rate shifts have a direct impact on the cost of their financial services.

They also mentioned that the sluggish economy is negatively impacting their operations and that increasing salaries are exacerbating their expenses. They are closely monitoring global developments and are prepared to take any necessary steps to ensure the continuity of their business.

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