After tax earnings plunge at Intralot

On a day in which Athens prosecutors launched fraud charges against managers alleged to be involved in a scam with OPAP, the Greek gaming company Intralot announced a weak set of first quarter 2011 results.
Although consolidated revenues increased by 32 percent compared to Q1-2010, reaching Euro 300.9 million, and EBITDA grew by 14.6 percent to Euro 39 million, earnings before taxes (EBT) at Euro 16.2 million were 41.6 percent lower than the comparative quarter, and earnings after taxes plunged 53.7 percent to Euro 7 million.
Management reported that the decline was caused by Euro 5.8 million in FX losses.
Nevertheless, the quarter was cash-flow positive as net debt dropped by Euro 2.7 million, despite the front-loaded quarter in terms of Capex.
Reuters reports that revenues for the parent company were shaped at Euro 26.5 million, posting an increase of 1.5 percent compared to Q1-2010. EBITDA declined by 66.2 percent to Euro 2.4 million and Earnings After Taxes came in at Euro 100 000.
Commenting on the results, group CEO Constantinos Antonopoulos said: “We are satisfied that we managed to grow our sales and EBITDA during the 1Q of 2011. Moreover, in our FY 2010 results announcement we stressed that from 2011 and onwards we would focus on the improvement of the company’s cash-flow.
“I am very pleased to say that we have accomplished this already in our 1Q 2011 results, as net debt decreased marginally despite a front loaded quarter in terms of Capex. We believe that in the next three quarters of 2011 the improvement will be even greater.
“In the short- and mid-term we will focus on innovation, the exploitation of our existing projects, the liberalization of selected markets, the privatization of lotteries, and the continued improvement of our cash flow generation, so as to increase our shareholders’ value.”

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