INTRALOT announces a healthy Revenue (+7.1%) and EBITDA (+6.6%) growth in Fiscal Year 2016

Transcription

1 Results fr the Twelve Mnths Ended December 31 st, 2016 INTRALOT annunces a healthy Revenue (+7.1) and EBITDA (+6.6) grwth in Fiscal Year 2016 March 30 th, 2017 INTRALOT SA (RIC: INLr.AT, Blmberg: INLOT GA), an internatinal gaming slutins and peratins leader, annunces its financial results fr the twelve-mnth perid ending December 31 st, 2016, prepared in accrdance with IFRS. OVERVIEW Grup Revenues increased by 7.1 in 2016, while 4Q16 results grew by 7.5 EBITDA in the twelve-mnth perid grew by 6.6, whereas 4Q16 EBITDA increased by 18.6 EBITDA margin at 4Q16 was shaped at 14.1 (+1.3pps vs. LY), while n a yearly basis remained steady at 13.3 In September, INTRALOT cncluded the refinancing f its 325.0m Senir Ntes, due in 2018, with a 250.0m bnd due in 2021 Simultaneusly, the Grup refinanced its 200.0m revlving credit facility up until 2019, increasing cmmitted lines by 25.0m During 2016 the Grup cmpleted three imprtant M&A transactins in Peru, Italy and Bulgaria Page 1 f 8

2 Cnslidated Financial Statements fr the 12 Mnths Ended December 31 st, 2016 (in millin) FY16 FY15 4Q16 4Q15 Change Change Revenues (Turnver) 1, , Grss Prfit EBITDA EBITDA Margin () pps pps EBT EBT Margin () pps pps NIATMI Cmmenting n the FY 2016 Results INTRALOT Grup CEO Antnis Kerastaris nted: The strngly psitive results f 2016 in bth grwth and prfitability reflect imprtant transfrmatins that have taken place ver the past cuple f years acrss peratinal capabilities, prject management, cst structure, and Prducts and Services prtfli investments. A series f M&A transactins greatly enhanced ur business develpment ptential thrugh strng lcal partnerships and diversified prtfli ffering. The past year was als marked by tremendus imprvements in INTRALOT s financial structure in a way that secures future savings and a clear funding hrizn until 2021 while affirming internatinal investrs cnfidence in future value creatin. OVERVIEW OF RESULTS REVENUES Reprted cnslidated revenues increased by 7.1 cmpared t the prir year; this led t ttal revenues fr the twelve-mnth perid ending in December 31 st, 2016, t 1,323.6m. Revenues in 4Q16 increased by 7.5 cmpared t the same perid last year, driven by the increased sprts betting revenues in Bulgaria and the cnslidatin f the recently acquired Bulgarian lttery cmpany, Eurbet, after 1H16. The increase in Fiscal Year 2016 derives frm: m in East Eurpe due t increased sales in Bulgaria and Turkey, +21.6m in Nrth America driven by the sale f self-service lttery terminals and the largest Pwerball Jackpt in histry. Revenue increases were partially cunterbalanced by decreased sales f -57.8m in Asia due t lwer sales in Azerbaijan where the lcal currency suffered severe devaluatin, and m in Suth America due t the cnsiderable devaluatin f the lcal Argentinian currency and sfter sales in Jamaica and Brazil. Page 2 f 8

3 Adjusting fr Eurbet s first time cnslidatin, ttal revenues fr the twelve-mnth perid ending in December 31 st, 2016, shaped t 1,295.8m (+4.9 in y--y) Cnstant currency basis: In Fiscal Year 2016, revenues net f the negative FX impact f 148.5m reached 1,472.1m (+19.2 y--y), while in 4Q16 revenues net f the negative FX impact f 36.4m were shaped at 402.5m (+18.2 y--y). Numerical Games are the largest cntributrs t ur tp line, cmprising 41.9 f ur revenues, fllwed by Sprts Betting cntributing 41.6 t Grup turnver. Technlgy cntracts accunted fr 10.9 and VLTs/AWPs represented 3.0 f Grup turnver while Racing cnstituted the 2.6 f ttal revenues fr the Fiscal Year YY variance per Main Prduct chg Numerical Games -1.4 Sprts Betting Wagers handled During the twelve-mnth perid ending December 31 st, 2016, INTRALOT systems handled 23.4b f wrldwide wagers (frm cntinuing peratins), a 1.0 y--y increase. Africa s wagers increased by 23.6, Nrth America s wagers increased by 8.4, East Eurpe s by 1.7, and West Eurpe s by 0.4 while Suth American wagers decreased by 7.2, and Asia s wagers decreased by 4.1. PAYOUT/ GROSS MARGIN / OPERATING INCOME / OPEX The Payut rati in FY16 increased by 3.5pps vs. FY15 (70.2 vs. 66.7) primarily due t Bulgaria, Jamaica & Malta. At the same time, GGR increased by 3.5 as the sales increase in ur B2B/B2G cntracts fully balanced the augmented payut effect. In 4Q16, the Payut rati increased by 2.8pps. vs. 4Q15 (due t Bulgaria, Pland and Jamaica), while GGR increased by 1.5, fueled by imprved sales in ur B2B/ B2G cntracts. The Grss prfit margin was shaped at 17.6 in FY16, cmpared t 18.9 in FY15, negatively affected primarily by the increased payut with margin expansins in the US, and the Netherlands partially mitigating the Grss prfit margin shrtfall. Overall, Grss Prfit decreased slightly frm 2015 levels (-0.3). Other perating incme in FY16 ttaled 33.1m cmpared t 23.1m in FY15; psting an increase f 43.3, including a nn-recurring incme in Australia due the Victria State Lawsuit successful settlement in 4Q16. Ttal perating expenses increased slightly by 0.5, t 158.3m. Excluding impairment lsses, ttal perating expenses decreased by 2.3 in line with ur strategy t cntain csts. Page 3 f 8

4 EBITDA EBITDA, frm cntinuing peratins, develped t 175.8m in FY16, psting an increase f 6.6 cmpared t FY15. EBITDA in 4Q16 was shaped at 51.6m, increasing by 18.6 y--y. On a yearly basis, EBITDA margin, frm cntinuing peratins, remained steady at 13.3, shwcasing perating prfitability resilience as the Grup fully absrbed a payut rati increase f 3.5pps. Cnstant currency basis: In FY16 EBITDA, net f the negative FX impact f 23.0m, reached 198.8m (+20.6 y--y); while in 4Q16 EBITDA, net f the negative FX impact f 5.7m, cncluded at 57.3m (+31.6 y--y). EBT / NIATMI EBT in FY16 ttaled 4.8m cmpared t 47.9m in FY15. In 4Q16 EBT was -14.2m cmpared t 16.1m in 4Q15 ( -30.3m), negatively affected by higher net financial csts ( 18.9m) mainly due t the bnd refinancing and increased impairment/ writeffs ( 29.1m) in the last quarter f 2016 Cnstant currency basis: In FY16 EBΤ, net f a negative FX impact, reached 22.4m frm 44.3m in FY15; while in 4Q16 EBT, net f a negative FX impact, was shaped at -13.4m frm 13.8m ( -27.2m). NIATMI frm cntinuing peratins in FY16 cncluded at -71.7m cmpared t m in FY15, while in 4Q16 it was -38.4m cmpared t -6.0m in 4Q15. Cnstant currency basis: NIATMI frm cntinuing peratins in FY16, net f a negative FX impact, reached -68.4m frm -45.7m in FY15, while in 4Q16 it was shaped at -40.9m frm -9.4m in 4Q15. CASH-FLOW Operating Cash-flw increased significantly in FY16 at 168.1m vs m in FY15. The grwth is mainly attributed t WC imprvement (+ 46.8m vs. FY2015) bth due t efficient management and WC nrmalizatin. Net Capex in FY16 was 62.9m cmpared t 68.7m in FY15. Majr Capex items in FY16 include investments in R&D (including Cmpetence Centers) f 17.4m, in ur US business ttaling 11.4m, in Chile 6.2m, and 27.9m additins in all ther jurisdictins. Page 4 f 8

5 Cash and cash equivalents at the end f the perid decreased by 112.2m vs. LY as a result f debt repayment ( -95.1m), the refinancing expenses ( -22.0m) and dividend distributin t minrity interests ( -42.1m) in part ffset by the net M&A prceeds ( +19.0m) as well as the cash generated frm the nrmal curse f business ( 28.0m). Net debt, as f December 31 st, 2016, develped t 494.9m up 17.3m cmpared t the same perid last year. In the 4 th quarter, Net Debt drpped by 38.9m, driven by the Peru transactin prceeds As f the Cmpany didn t hld any f ur bnds. RECENT/ SIGNIFICANT COMPANY DEVELOPMENTS New prducts and services that were develped within 2016 and installed fr multiple clients include: Prtn: a next generatin, all-in-ne Lttery terminal, designed fr extremely limited space applicatins; Mbile Lttery: an innvative, patent awarded, mbile applicatin that enables participatin in all games, anytime, anywhere, and allws peratrs t ffer and mnetize the lttery experience n mbile devices; Native Mbile Betting applicatins (ios, Andrid) with real mney gaming; Pulse Player: a cmplete gaming CRM system that includes an advanced Player Accunt Management system and a superir Marketing Tls suite, cvering bth nline and retail peratins acrss all platfrms. At the end f February f 2017, INTRALOT renewed its Idah Lttery cntract, fllwing a cmpetitive selectin prcess, fr anther 10 years n imprved terms. In March 2017, INTRALOT and AMELCO annunced the signing f a definitive agreement fr a strategic partnership t develp a suite f next-generatin sprts betting prducts. The partnership will cmbine, in a single slutin, INTRALOT s strng retail expertise with Amelc s state f the art nline betting platfrm, which is currently used by numerus leading sprts betting peratrs arund the wrld. This is expected t prvide INTRALOT's sprts betting prduct a significant bst in all f its betting peratins, bth B2C and B2B/ B2G. Page 5 f 8

6 APPENDIX Business Segments Analysis per Business Segments Revenues (in millin) FY16 FY16 FY15 FY15 change Operatin cntracts Management cntracts HW sales & facilities management cntracts Ttal 1, , Revenues frm Operatin cntracts (licenses) increased by 5.8 mainly due t higher revenues in Bulgaria, Malta, and Pland, partially cunterbalanced by the perfrmance f Azerbaijan, Jamaica, Argentina, and Brazil. Sales frm Management cntracts psted an increase f 17.1 mainly driven by the perfrmance f Turkey and Mrcc. Revenues frm HW sales and facilities management increased by 8.7 mainly due t increased revenues in the US and Australia; the effect was partially cunterbalanced by the revenues in Argentina, an IT cntract in Malaysia, and the revenues frm the Hellenic Ltteries. Gegraphical Sales Breakdwn (in millin) FY16 FY15 chg Eurpe Americas Other Eliminatins Ttal Cnslidated Sales 1, , Gegraphical Grss Prfit Breakdwn (in millin) FY16 FY15 chg Eurpe Americas Page 6 f 8

7 Other Eliminatins Ttal Cnslidated Grss Prfit Gegraphical Grss Prfit Margin Analysis FY16 FY15 chg Eurpe pps Americas pps Other pps Ttal Cnslidated Grss Margin pps INTRALOT Parent cmpany results Revenues fr the perid decreased by 14.4 t 65.5m. The sales cntractin is primarily driven by the lwer revenues in Malaysia (due t ne-ff IT sales in the first half f 2015) and the lwer revenues frm the Hellenic Ltteries (due t ne-ff sales f equipment in the first half f 2015). EBITDA decreased t -0.5m frm 45.7m in FY15. The cnsiderable EBITDA variance is mainly driven by the less Intragrup prvisins reversals in 2016 vs ( 23.0m) and higher Intragrup prvisins in 2016 ( 12.0m) fllwed by the afrementined revenue decline. Earnings After Taxes (EAT) shaped at -0.4m frm -3.6m in FY15. INTRALOT Parent Cmpany Headline P&L Figures fr The 12 Mnths Ended December 31 st, 2016 ( millin) FY16 FY15 Change Revenues (Sales) EBITDA EAT Abut INTRALOT INTRALOT, a public listed cmpany established in 1992, is a leading gaming slutins supplier and peratr active in 55 regulated jurisdictins arund the glbe. With 1.32 billin turnver and a glbal wrkfrce f apprximately 5,300 emplyees (3,450 f which in subsidiaries and 1,850 in assciates) in 2016, INTRALOT is an innvatin driven crpratin fcusing its prduct develpment n the custmer experience. The cmpany is uniquely psitined t ffer t lttery and gaming rganizatins acrss gegraphies market-tested slutins and retail peratinal expertise. Thrugh the use f a dynamic and mni-channel apprach, INTRALOT ffers an integrated prtfli f best-in-class gaming systems and prduct slutins & services addressing all gaming verticals (Lttery, Betting, Interactive, VLT). Players can enjy a seamless and persnalized experience thrugh exciting games and premium cntent acrss multiple delivery channels, bth retail and Page 7 f 8

8 interactive. INTRALOT has been awarded with the prestigius WLA Respnsible Gaming Framewrk Certificatin by the Wrld Lttery Assciatin (WLA) fr its glbal lttery peratins. Fr mre inf: - Ms. Dimitra Tzimu tzimu@intralt.cm, Crprate Relatins Manager, r - Investrs Relatin Dept. ir@intralt.cm Phne: , Fax: , Page 8 f 8