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Intralot: The corporate bond and its extroversion strategy

Πηγή φωτ.

The next stage of financial restructuring involves a syndicated loan

Intralot has turned to a higher margin model, recording an EBITDA margin of approximately 36.6% for the twelve-month period ending in 2023 from approximately 31% at the end of 2022, with focus on B2B, technology contracts, lottery sector and developed markets.

The company’s goal is to create a strong business that will be able to secure funds for the conclusion of large contracts in the international gaming market where it operates with an emphasis on the USA, where there is the prospect of claiming a significant number of new projects.

It maintains 14 active contracts in North America (11 US states and 1 in Canada) and 36 contracts in 27 markets worldwide, in countries such as the Netherlands, Germany, Croatia, Turkey, Morocco, Taiwan, Australia, Argentina. The group’s long-term strategy concerns the creation of optimal technological solutions that differentiate it from its competitors, expanding its presence in strategically important markets and maintaining the diversification of its portfolio.

It also concerns the creation of value from increased cash flow generation, expanding margins and improving long-term revenue sustainability, thorough capital allocation with the aim of optimizing the capital structure and ensuring efficient use of resources. Intralot achieved deleveraging of its net debt to EBITDA ratio (2.4x NLR) after two successful share issues totaling 265 million euros.

It recently completed its restructuring and refinancing focusing on higher profit margin and efficiency, having secured the strong support of its founders and shareholders. It now proceeds with the public offering of bonds of up to 130 million euros and its listing in the Fixed Income Securities Market of the Athens Stock Exchange, proceeding with a public offering from Wednesday until Friday with a yield range of 6-6.4%, aiming to refinance part of the company’s existing borrowing.

The next stage of financial restructuring involves a syndicated loan.

Its strategy

As the company’s management said, Intralot is a technology company and its strategy is summed up in “Driving Lottery Digital Transformation”, with an emphasis on modernizing lotteries through innovative solutions and secure systems. The company develops next-generation products for seamless (omnichannel) player experiences, aligning with global gaming trends. At the same time, it focuses on strengthening the online channel.

The group has extensive experience in building Video Lottery Terminal (VLT) tracking systems in regulated markets and currently operates an extensive VLT tracking network in the United States and Oceania. It has recorded a systematic rise in its financial indicators and significant profit margins over the last three years.