Intralot, an international gaming solutions and operations leader, has published its FY 2022 results, showing slight group revenue decrease. Despite the setbacks, the positive annual and quarterly EBITDA changes attested to the effect of the company’s strategy.

Intralot reported FY 2022 group revenue of $428.7 million (converted to USD), marking a 5.1% year-on-year decline. EBITDA, meanwhile, was $134.1 or 11.3% up from FY 2021. EBITDA was very strong in Q4, for example, increasing by 25.1% to $38million.

Intralot also reported annual operating cash flow of $105.1 million, which translates to a YOY decrease of 10.5%.

In spite of certain declines, the gaming specialist was able to wrap up 2022 with lower net debt than the one it had in 2021. For reference, the company owed $542.6 at the end of 2021 and $535.3 at the end of 2022.

Amid the ongoing economic hurdles, Intralot recorded a 3.9% increase in its operating expenses. The company attributed these results to the unfavorable foreign exchange movements.

CEO Kokkalis Praised His Company’s Robust Performance

While certain metrics were lower than in 2021, Sokratis P. Kokkalis, Intralot’s chair and CEO, praised the results, saying that they reflect the company’s robust performance and restructuring efforts. He also mentioned the successful completion of a $140.8 million share capital increase that attracted Standard General, a US-based fund, as a strategic investor. The money helped Intralot regain control of its US subsidiary.

In addition to that, Intralot was able to repay the US-issued 2025 PIK Toggle Notes thanks to a new $230 million term loan from a consortium of US banks and its own cash. Intralot also secured a new revolving credit facility of $50 million.

Kokkalis concluded that Intralot will continue pursuing growth in the United States and beyond.

In the light of our significantly improved position, we look forward to tapping new growth opportunities in the US and the rest of the world as one of the top gaming technology providers worldwide and working towards refinancing the 2024 Notes.

Sokratis P. Kokkalis, chair & CEO, Intralot

Intralot Is Wary of the Economic Headwinds

Intralot concluded that the current period is challenging as inflationary pressures and rising interest rates weigh on economic growth. These headwinds have a direct effect on Intralot Group and since analysts believe that banks will not ease their monetary policy before the end of 2023, the company prepares for a turbulent period.

Intralot concluded that its management is closely following the geopolitical and economic developments. The company is fully prepared to react and protect its operations if needed.

A few days ago, Intralot continued its NA expansion by signing a new deal with the British Columbia Lottery Corporation.

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The company is experiencing significant hardships after losing its New South Wales and Queensland licenses, owing hundreds of millions in fines and facing several class action lawsuits. Foster’s appointment is part of an ongoing process to remedy the company’s shortcomings, ensure compliance and contest unjust allegations. The new chairman remains optimistic regarding the company’s future as he helps foster a new chapter for the group.

The Operator Is Scrambling to Reform

The past year has not been kind to the once-leading Australian casino operator. A 2021 investigation by The Sydney Morning Herald, The Age, and 60 Minutes revealed severe AML failings and possible ties to terrorist organizations. An official probe soon followed, confirming that The Star had severely and systematically violated numerous regulations. An apathetic response only worsened the situation, drawing the ire of authorities across Australia.

The Star faces up to $1 billion in fines and is engaged in several class action lawsuits. The Australian Securities and Investments Commission (ASIC) relentlessly pursues the operator’s former and current directors and executives. Furthermore, losing the NSW and Queensland licenses has severely impacted the operator’s bottom line. The ongoing turmoil has prompted The Star to elevate new, controversy-free talent to its management team.

Foster Has Experience Salvaging Struggling Enterprises

David Foster’s appointment as chairman has him replace Benjamin Heap, who is facing legal action. Heap is the last active director or executive involved in the proceedings, so his departure will hopefully signal a fresh start for the embattled operator. The former chairman was confident that his successor would help restore The Star’s damaged reputation.

I have every confidence The Star will be a powerhouse of the Australian tourism and entertainment sectors for decades to come.

Benjamin Heap, former chairman of Star Entertainment 

As chairman, Foster will be directly involved in remedying the operator’s shortcomings, hopefully restoring at least a part of its previous market position. He thanked Heap for spearheading the arduous rejuvenation process and promised to aid the renewed board of directors in the company’s journey back toward compliance.

I’m delighted to assume the role of chairman as we continue with an unwavering focus on earning back the trust of the community.

 David Foster, chairman of Star Entertainment 

Foster’s wealth of experience will be invaluable for the company’s remedial efforts. His career of over 25 years in the financial services sector saw him take the reins of Suncorp Bank, salvaging it from the consequences of the global financial crisis and steering it back into stability. Such experience is just what The Star needs to turn things around and recapture its former glory.

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