Intralot Eyes Online Profit Boost Opportunities
02 Sep, 2009
Post-tax earnings fell €18.3m to €42m or over 30 percent as the Athens-listed firm said it was hit by the effects of the global economic downturn, adverse foreign currency movements and increased start-up expenses. Total revenues fell 10.9 percent to €488m while EBITDA was down 28 percent, or €35.6m, to €91.1m.
The company said that despite the expected fall in profits it was “pleased” with the figures and that full-year profitability was on track.
The company pointed to its recent debut in the online field as one area that would help push earnings and profitability in the forthcoming months and years. Intralot launched its Italian-facing online poker operation in a joint-venture with online giant PartyGaming in early July.
Chief executive Constantinios Antonopoulos said: “We are very excited about the idea of offering games through the internet in countries where online gaming is permissible by local legislation and this was the reason for establishing a separate entity, Intralot Interactive, to take advantage of such opportunities.”
The Italian market showed its first signs of slowing back in June when figures from regulatory authority AAMS showed early leaders Gioco Digitale losing market share under pressure from new entrants such as Party/Intralot and PokerStars.
It is likely, however, that the Italian online market will receive a further regulatory-led boost with the introduction of cash games and online casino likely in the coming months.
Antonopoulos added that the new operation was “working hard” on seeking further opportunities in several more countries. His comments echo those of PartyGaming boss Jim Ryan who said at the time of the signing of the deal in April that the agreement would see the companies “exploring opportunities” together in the more than 50 jurisdictions that Intralot has a presence.
Intralot is also hopeful of further revenue boost from recently signed deals in Ohio and Holland where Intralot has been hired to run lottery operations.
Ohio represents the largest of Intralot’s 11 US state lottery contracts. The company was awarded the contract to run up to 10,000 lottery terminals within the state last year. Recently, it also emerged that the company is set to be awarded a temporary contract to run the racino slots operations within the state.
Intralot also recently won out on new deals in Vermont and Arkansas, meaning the company now has six lottery contracts awaiting the beginning of operation over the next few quarters.
Antonopoulos said: “This is a very significant achievement for the company, indicating its leading-edge technology and competitiveness in a very big market.”
The company repeated its aim of seeking strategic acquisition opportunities in the year ahead, alongside further online possibilities.
Back in June, the company secured approval for a bond issue that raised €150m which it said at the time would go towards any possible M&A opportunities. However, observers at the time suggested it was by no means sure that the money would go towards any acquisitions, and could be allocated towards paying off some of the company’s €507.2m of total debt.
The company said that despite the expected fall in profits it was “pleased” with the figures and that full-year profitability was on track.
The company pointed to its recent debut in the online field as one area that would help push earnings and profitability in the forthcoming months and years. Intralot launched its Italian-facing online poker operation in a joint-venture with online giant PartyGaming in early July.
Chief executive Constantinios Antonopoulos said: “We are very excited about the idea of offering games through the internet in countries where online gaming is permissible by local legislation and this was the reason for establishing a separate entity, Intralot Interactive, to take advantage of such opportunities.”
The Italian market showed its first signs of slowing back in June when figures from regulatory authority AAMS showed early leaders Gioco Digitale losing market share under pressure from new entrants such as Party/Intralot and PokerStars.
It is likely, however, that the Italian online market will receive a further regulatory-led boost with the introduction of cash games and online casino likely in the coming months.
Antonopoulos added that the new operation was “working hard” on seeking further opportunities in several more countries. His comments echo those of PartyGaming boss Jim Ryan who said at the time of the signing of the deal in April that the agreement would see the companies “exploring opportunities” together in the more than 50 jurisdictions that Intralot has a presence.
Intralot is also hopeful of further revenue boost from recently signed deals in Ohio and Holland where Intralot has been hired to run lottery operations.
Ohio represents the largest of Intralot’s 11 US state lottery contracts. The company was awarded the contract to run up to 10,000 lottery terminals within the state last year. Recently, it also emerged that the company is set to be awarded a temporary contract to run the racino slots operations within the state.
Intralot also recently won out on new deals in Vermont and Arkansas, meaning the company now has six lottery contracts awaiting the beginning of operation over the next few quarters.
Antonopoulos said: “This is a very significant achievement for the company, indicating its leading-edge technology and competitiveness in a very big market.”
The company repeated its aim of seeking strategic acquisition opportunities in the year ahead, alongside further online possibilities.
Back in June, the company secured approval for a bond issue that raised €150m which it said at the time would go towards any possible M&A opportunities. However, observers at the time suggested it was by no means sure that the money would go towards any acquisitions, and could be allocated towards paying off some of the company’s €507.2m of total debt.