Intralot revenue growth driven by Argentina upswing during Q1

Intralot Reports Robust Revenue Growth, Despite Flat EBITDA

Intralot has recorded a commendable revenue increase of 10.9% during Q1 2025, achieving €94.4 million ($107.1 million/£79.5 million). While the company witnessed a steady topline performance, EBITDA experienced marginal growth of just 0.3%. This notable revenue surge can be attributed to favorable trading conditions in Argentina and expansion in its Game Management and Licensed Operations sectors.

The three-month period ending March 31, 2025, marked a significant uptick in revenue compared to the same quarter of 2024. Intralot also reported a gross gaming revenue (GGR) climb of 8.3%, reaching €88.5 million, illustrating a robust demand across its various gaming offerings.

As the leading contributor to revenue, lottery games represented 55.2% of total earnings for Q1, a slight increase from the 54.8% share observed in the prior fiscal year. Sports betting comprised 25.0% of revenue, followed by video lottery terminals at 11.6%, and IT products and services at 8.2%. Notably, the B2B segment accounted for a substantial 88.9% of total revenue, although this marks a decline from 90.2% in FY2024.

Improving Trading Conditions in Argentina

Intralot’s Technology segment remains its most profitable, generating €61.4 million, or 65% of total revenue. However, this represents a decrease from 71% in Q1 2024, with revenue growth limited to €1.0 million. The segment benefited from solid performances in Argentina, a favorable sales trend in Croatia, and organic growth in Oceania. Yet, operations in the U.S. faced challenges due to reduced activity in multi-state jackpots.

The B2C Licensed Operations in Argentina, although the smallest segment, showed remarkable growth of 64.8% year-on-year, reaching €10.5 million and accounting for 11% of total revenue—up from 7% in Q1 2024. Enhanced macroeconomic conditions in Argentina have played a crucial role in this impressive market expansion, with results in local currency reflecting an astonishing increase of 106.1% compared to the previous year.

The Game Management segment also demonstrated strength, increasing by 22.8% to €22.5 million, and now comprising 24% of the total. This growth was significantly propelled by a 61% rise in online sports betting in Turkey, despite the 14.8% devaluation of the Turkish lira.

Stable EBITDA Amid Rising Operating Expenses

Total operating expenses saw a slight increase of €1.0 million (3.7%), which Intralot cited as essential for supporting revenue growth initiatives. The company reported other operating income of €7.6 million, reflecting a year-on-year increase of 14.2%.

The EBITDA remained almost unchanged from the previous year, growing by just 0.3% to €30.2 million. Intralot attributed this consistent performance to the enduring resilience of its operations, highlighting strong contributions from key markets.

Operating cash flow also exhibited improvement, rising by €21.8 million to €48.9 million, compared to €27.1 million recorded in Q1 2024. This increase was primarily driven by the recovery of receivables from previous years.

Chairman Sokratis P. Kokkalis expressed satisfaction with the quarterly results and emphasized recent significant gains, including a new six-year agreement with New Zealand’s Department of Internal Affairs for an electronic monitoring system (EMS) related to gaming machines. Additionally, Intralot extended its gaming systems contract with the New Hampshire Lottery Commission for another seven years.

Kokkalis elaborated, “Intralot’s Q1 2025 results highlight a combination of revenue growth, generation of free cash flow, stable profitability, and continued debt reduction, resulting in a net debt leverage ratio of 2.4x.” He also noted the renewal of crucial contracts in New Zealand and New Hampshire, with the latter state becoming the inaugural U.S. jurisdiction to implement Intralot’s advanced central lottery platform, Lotos X.

Intralot Denies Australian Acquisition Rumors

In response to recent speculation about a potential acquisition in Australia, Intralot has categorically denied engaging in discussions. Reports suggesting interest in acquiring Max Gaming, the gaming monitoring division of Tabcorp, indicated a possible valuation of up to AU$610 million (€348 million/$394 million).

Intralot clarified in an official statement, “No binding agreements of this kind exist. Currently, Intralot is not conducting any negotiations related to any acquisition in Australia.”