Intralot, a leading gaming technology provider, recently disclosed its financial results for the year 2022.
Despite facing a variety of challenges, the company managed to generate substantial revenue, reporting a total income of €11.9 million.
However, this figure represented a 31.9% decrease from the €17.5 million achieved in 2021.
One significant development was the reduction of Intralot’s net debt by €6.7 million, bringing it down to €490.5 million.
This improvement also led to a decrease in the company’s debt-to-EBITDA ratio from 4.5x to 4.0x, compared to the previous year.
The bulk of the debt stemmed from Covid-era financing, a period during which large portions of the company’s operations were severely impacted.
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Operating expenses at Intralot increased by 3.9% from €96.0 million to €99.8 million. The company attributed this rise primarily to adverse foreign exchange movements.
In 2022, the dollar gained strength against the euro, resulting in increased costs for Intralot’s US-based operations.
This currency fluctuation offset cost-saving measures implemented at the company’s headquarters.
Sokratis P Kokkalis, the Chairman and CEO of Intralot, portrayed these financial results as a consequence of successful restructuring efforts undertaken in 2021-22.
He stated, “Intralot’s 2022 financial year results reflect robust performance and continuous improvements in all key financial indicators.”
Kokkalis also highlighted the company’s share capital raising of €129 million in 2022, which played a pivotal role in attracting the strategic investment of US-based fund Standard General.
The proceeds from these activities were directed toward regaining full control of Intralot’s US subsidiary, Intralot Inc.
Intralot’s long-term strategy, outlined in its 2022 Q3 financial report, focuses on expanding its digital presence, especially in North America.
Kokkalis emphasized that this growth would be the company’s top priority, along with reducing its outstanding debt.
He expressed optimism, saying, “We look forward to tapping new growth opportunities in the US and the rest of the world.”
However, Intralot acknowledged the challenging economic environment in its 2023 outlook, highlighting concerns about inflationary pressures and central banks tightening interest rates.
Given its significant debt load, the company has been particularly sensitive to changing interest rate dynamics, resulting in increased financial servicing costs.
Intralot pledged to closely monitor geopolitical and economic developments and take necessary measures to safeguard its operations in this evolving landscape.