Date: 24.11.2023

by Antoni Majewski

Intralot Group’s YTD Financial Performance: Challenges and Growth in 2023

Intralot Group, a prominent name in the gaming industry, has reported its financial results for the year-to-date (YTD) up to September 2023.

The company’s nine-month revenue stands at €280 million ($305.6 million), showing a 7.2% decrease year-on-year. However, there’s a silver lining as the third quarter (Q3) revenue experienced an 8.1% rise, reaching €104.8 million. This mixed financial picture highlights the ongoing challenges and resilience in the gaming sector.

Gaming Revenue: A Ray of Hope

Interestingly, despite the overall revenue decrease, Intralot’s gross gaming revenue (GGR) rose by 2.2%, totaling €262.2 million. This increase indicates that the core gaming business continues to grow, albeit modestly. The revenue breakdown shows a significant contribution from lottery games, accounting for 56.8% or €159 million of the total revenue in the past nine months. This suggests a strong market presence and consumer preference in the lottery segment.

EBITDA and Stock Performance

In terms of profitability, Intralot reported positive movements. The Year-To-Date EBITDA stood at €101 million, a notable 14.7% increase from the previous year. This upward trend in EBITDA signifies improved operational efficiency and profitability. The company’s stock price also reflects this positive trajectory, with an all-time high of €0.99 on 23 November, a significant rise from the low of €0.58 on 4 January.

Intralot has made several strategic decisions in 2023, including C-Suite changes and maintaining key business relationships, such as with the Wyoming Lottery. Intralot’s Chairman & CEO, Sokratis P. Kokkalis, commented positively on these results, emphasizing the company’s return to net profits, strong EBITDA growth, and effective cash flow generation. His acknowledgment of the investors’ trust reflects confidence in Intralot’s future performance.

Our Comment on the Article

Intralot’s YTD financial performance for 2023 presents a complex yet optimistic picture. Despite the overall revenue decline, the growth in gross gaming revenue and a significant increase in EBITDA are promising signs. These results indicate that Intralot is navigating the challenges of the gaming industry effectively, focusing on profitable segments and improving operational efficiency.

The company’s strategic decisions, including leadership changes and partnership developments, seem to be paying off, positioning Intralot for sustained growth in the future. The optimistic tone from the CEO further reinforces the belief that the company is on a path to stronger results and a robust market position.