Intralot Integrated Lottery Systems and Services — Focus on business development in FY24

Intralot (ASE: INLOT)

Last close As at 24/05/2024

EUR1.16

0.00 (0.00%)

Market capitalisation

EUR704m

More on this equity

Research: Consumer

Intralot Integrated Lottery Systems and Services — Focus on business development in FY24

Intralot enjoyed good underlying trends in performance in FY23 with encouraging trends in its main countries of focus and further progress on profitability. The much-improved balance sheet and extension of debt maturities mean management can focus on the significant business development opportunities available in FY24 and beyond. The share price looks attractive in the absence of potential new contract wins, which could be materially enhancing to the valuation.

Russell Pointon

Written by

Russell Pointon

Director of Content, Consumer and Media

Consumer

Intralot

Focus on business development in FY24

FY23 results

Travel and leisure

24 April 2024

Price

€1.17

Market cap

€707m

Net debt (€m) at 31 December 2023 (excluding IFRS 16 liabilities of €15.8m)

317.4

Shares in issue

604.1m

Free float

45.5%

Code

INLOT

Primary exchange

ASE

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

0.7

0.2

89.9

Rel (local)

(0.9)

(6.4)

45.8

52-week high/low

€1.25

€0.57

Business description

Intralot Integrated Lottery Systems and Services is a leading global supplier of integrated systems and services for the worldwide gaming, lottery, sports betting and digital gaming industries.

Next events

Q124 results

May 2024

H124 results

August 2024

Analysts

Russell Pointon

+44 (0)20 3077 5700

Milo Bussell

+44 (0)20 3077 5700

Intralot is a research client of Edison Investment Research Limited

Intralot enjoyed good underlying trends in performance in FY23 with encouraging trends in its main countries of focus and further progress on profitability. The much-improved balance sheet and extension of debt maturities mean management can focus on the significant business development opportunities available in FY24 and beyond. The share price looks attractive in the absence of potential new contract wins, which could be materially enhancing to the valuation.

Year end

GGR*

(€m)

EBITDA**
(€m)

PBT**
(€m)

EPS**
(€)

EV/EBITDA (x)

P/E
(%)

12/22

343.9

122.9

16.3

(0.01)

8.4

N/A

12/23

348.6

129.5

26.1

0.01

7.9

N/A

12/24e

354.0

138.1

47.7

0.02

7.4

58.5

12/25e

378.9

151.5

70.2

0.04

6.8

29.3

Note: *GGR, gross gaming revenue. **EBITDA, PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Good underlying growth, negative forex

Intralot achieved good underlying growth in FY23; revenue increased by 4.3% with good to very strong growth across its main geographies. On a reported basis, revenue growth was negatively affected by currency translation due to the general strength of the euro and the end of a contract in the prior year (c €43m or 11% of FY22 revenue). With respect to the former, the significant devaluation of the Argentine peso (over 50% versus the euro) in December 2023 was particularly unhelpful. Free cash flow generation improved, growing by c 19% y-o-y, a greater rate than revenue growth (c 1%) and EBITDA growth (c 5%); along with other changes in financing, this helped to further improve the net debt position (including leases) to 3.2x EBITDA from 4.0x at the end of FY22. Post year-end debt raises and repayments means that all FY24 debt maturities have been repaid early.

Underlying estimates unchanged

Management indicated that FY24 will be busy and it can focus on business development given the improved financial position. A number of contracts will be decided (North Dakota and Wisconsin), as well as in Australia and Brazil, and a ‘request for proposal’ (New Mexico) will be issued. We have made no changes to our underlying estimates for FY24 and FY25 but have updated for the lower FY23 base as well as changes in exchange rates since our last update. The net effect is 3% downgrades to revenue and EBITDA, due to the devaluation of the Argentine peso, but more favourable financing charges lift our PBT forecasts.

Valuation: Base DCF valuation of €1.60 per share

There is attractive upside to our DCF-based valuation, which is relatively unchanged at €1.60 per share (€1.62 per share previously). We highlighted the sensitivity of the share price to potential new contracts wins in our recent initiation.

FY23: Margin expansion fuels better cash generation

Income statement

Intralot’s FY23 revenue (before winners’ payout) declined by c 7% y-o-y to c €364m, and gross gaming revenue (GGR; revenue after winners’ payout) increased by c 1% to c €349m. Management’s ongoing focus on controlling costs and a change in business mix towards higher-margin businesses (ie from Licensed Operations (LO) to Technology & Support Services (TSS) and Management Contracts) continued to deliver a better performance at the EBITDA line, which increased by 5% to c €129m. On an underlying basis, revenue increased by 4.3% in the year; the reported decline in revenue included the ending of a Maltese contract from Q322, equivalent to 11% of FY22’s revenue.

Exhibit 1: Summary income statement

€m

FY22

Q123

Q223

Q323

Q423

FY23

FY23e

FY23 versus FY23e

Revenue

392.8

89.5

85.8

104.8

84.0

364.0

383.1

(5.0%)

Growth y-o-y

(5.1%)

(8.4%)

(20.0%)

8.1%

(7.7%)

(7.3%)

(2.5%)

- Technology & Support Services

252.9

61.4

62.1

71.6

68.2

263.3

272.4

(3.4%)

Growth y-o-y

11.4%

(1.2%)

8.0%

(0.8%)

4.1%

7.7%

- Management Contracts

50.5

16.9

12.9

22.1

20.5

72.4

68.7

5.4%

Growth y-o-y

54.2%

19.2%

63.1%

34.7%

43.2%

35.9%

- Licensed Operations

89.3

11.2

10.8

11.0

(4.7)

28.4

42.0

(32.4%)

Growth y-o-y

(64.5%)

(67.8%)

(35.3%)

(165.4%)

(68.2%)

(53.0%)

GGR

343.9

83.4

80.2

98.6

86.4

348.6

357.9

(2.6%)

Growth y-o-y

4.5%

(9.6%)

11.9%

98.9%

1.4%

4.1%

EBITDA

122.9

33.7

29.1

38.2

28.5

129.5

133.1

(2.8%)

Growth y-o-y

11.3%

29.2%

0.4%

15.9%

81.7%

5.4%

10.4%

Margin on revenue

31.3%

37.7%

33.9%

36.5%

33.9%

35.6%

34.8%

2.3%

Margin on GGR

35.7%

40.5%

36.3%

38.7%

32.9%

37.1%

37.2%

(0.2%)

- Technology & Support Services*

94.4

102.3

- Management Contracts*

19.2

25.0

- Licensed Operations*

9.2

2.2

Operating income

51.6

17.6

13.3

21.5

9.1

61.6

68.3

(9.8%)

Margin on revenue

13.1%

19.7%

15.5%

20.5%

10.8%

16.9%

17.8%

(5.1%)

Margin on GGR

15.0%

21.1%

16.6%

21.8%

10.5%

17.7%

19.1%

(7.4%)

Source: Intralot accounts, Edison Investment Research. Note: *Edison estimated breakdown from Intralot’s quoted percentages.

Intralot’s reported GGR and EBITDA for FY23 were c 3% below our prior estimates. In absolute terms, the main cause for the underperformance was the decline in revenue from Intralot’s activities in Argentina, which affects both LO and TSS, as a result of the devaluation of the Argentine peso versus the euro. The Argentine peso was devalued in the middle of December 2023 by over 50%, so that by the year end, the stated exchange rate was c ARS894/€ versus c ARS370/€ at the end of Q323 and c ARS190/€ at the end of December 2022. The timing of the devaluation (ie very late in the financial year) meant that management was unable to make any significant corrective action or for it to benefit from the post-devaluation inflation that typically compensates for the devaluation. In absolute terms, Intralot’s FY23 Argentine revenue declined year-on-year by c €25m to c €39m, GGR by c €17m to c €39m and EBITDA by c €8m to €7m. The extent of the currency depreciation is highlighted by the anomaly of implied ‘negative revenue’ for LO in Q423, derived by comparing FY23’s results with the quarterly figures reported through the year. Intralot converts Argentine revenue to euros using period end exchange rates, in accordance with IAS 21 The Effects of Changes in Foreign Exchange Rates, for hyperinflationary economies. On an underlying basis, the picture was much healthier for the year as Intralot’s Argentine operations grew by c 195% y-o-y. The lower revenue from LO was compounded by a higher winners’ payout ratio, 63.1% versus 58.7% in FY22, which only affects Intralot’s Argentine LO revenue.

TSS’s c 4% y-o-y revenue growth to c €263m was boosted by a strong performance in Croatia, which benefited from market growth, contributing to a very strong increase in profitability (see Exhibit 2), as well as a new lottery contract in Taiwan. In March 2024, Intralot announced it had signed a new seven-year contract with options for two extensions of five years each with Magnum Corporation, a leading Malaysia gaming company. Intralot first began working with Magnum Corporation in 2006 and the current contract was due to end in December 2024.

Management Contract (MC) revenue grew strongly, by c 43% y-o-y to €72.4m, mainly due to Intralot’s operations in Turkey. The Turkish sports betting market almost doubled in size during FY23, but reported euro revenues were negatively affected by the ongoing depreciation of the Turkish lira versus the euro: TRY32.65/€ at end FY23 versus TRY19.96/€ at end FY22. As Turkey is also a hyperinflationary economy, Intralot translates its revenue at period-end exchange rates, as it does for Argentina, instead of average rates.

The c 68% y-o-y reduction in LO’s revenue to c €28m was due to the decline in Argentine revenues and the end of a Maltese contract in Q322, which contributed c € 44m revenue in FY22.

The absolute level of FY23’s EBITDA was c 3% below our expectations, due to the foreign exchange issues, but the margin (relative to GGR) of 37.1% was broadly in line with our prior estimate. Intralot’s profitability bore the costs of closing down the contract in Morocco.

Exhibit 2 shows the reported numbers for Intralot’s most important geographies, in descending order of EBITDA contribution in FY23. We shift attention away from revenue to GGR and note that winners’ payout only affects Intralot’s LO revenue. In aggregate, the five countries/regions represented GGR of c €349m (c 80% of group total) and EBITDA of c €129m (c 98% of group total). Their importance to the group has increased versus FY22 when they represented c 73% of GGR and 95% of EBITDA, despite the lower contribution from Argentina.

On an underlying basis, North America’s GGR increased by c 3% y-o-y but euro strength versus the US dollar, notably of c 5% in Q4, restricted FY23’s revenue growth to 0.5%. The differential year-on-year growth rates (H123 c 7%, H223 -5%) reflect the comparatives from the prior year when the industry enjoyed a high number of multi-state large jackpots in H222 and the start of FY23, as well as the changes in exchange rates. Post the period end, Intralot announced a subcontracting agreement with FanDuel, a leading US sports betting provider, recognising the highly competitive nature of the market.

We have commented on Turkey’s strong revenue growth in the year above, but draw attention to the lower EBITDA margin in H223 as the company invested in gaining new customers.

Intralot’s activities reported good underlying revenue growth, with Australia up by 5% and New Zealand by 13%, but local currency weakness versus the euro from Q223 onwards dampened reported year-on-year growth rates.

Exhibit 2: Intralot’s main geographies

€m

H122

H222

FY22

H123

H223

FY23

North America

GGR

75.3

88.1

163.4

80.9

83.3

164.2

Growth y-o-y

(7.4%)

21.0%

6.0%

7.4%

(5.4%)

0.5%

EBITDA

29.8

44.1

73.9

34.2

35.5

69.7

Margin

39.6%

50.1%

45.2%

42.3%

42.6%

42.4%

Turkey

GGR

12.0

17.6

29.6

19.8

31.0

50.8

Growth y-o-y

(17.8%)

33.3%

6.5%

65.0%

76.1%

71.6%

EBITDA

4.7

9.3

14.0

10.5

10.1

20.6

Margin

39.2%

52.8%

47.3%

53.0%

32.6%

40.6%

Oceania

GGR

12.1

13.0

25.1

12.3

12.6

24.9

Growth y-o-y

22.2%

44.4%

32.8%

1.7%

(3.1%)

(0.8%)

EBITDA

8.6

9.5

18.1

8.9

9.0

17.9

Margin

71.1%

73.1%

72.1%

72.4%

71.4%

71.9%

Croatia

GGR

3.6

7.7

11.3

4.2

11.1

15.3

Growth y-o-y

N/A

N/A

N/A

16.7%

44.2%

35.4%

EBITDA

1.6

5.4

7

2.1

8.8

10.9

Margin

44.4%

70.1%

61.9%

50.0%

79.3%

71.2%

Argentina

GGR

20.1

20.2

40.3

18.7

4.9

23.6

Growth y-o-y

45.2%

0.0%

18.0%

(3.5%)

(73.3%)

(39.0%)

EBITDA

7.5

7.4

14.9

6.0

1.4

7.4

Margin

37.3%

36.6%

37.0%

32.1%

28.6%

31.4%

Source: Intralot accounts

Cash flow and balance sheet: Cash generation leads to degearing

Intralot saw a strong improvement in free cash flow generation (before interest payments and after the principal payments of leases) on an absolute basis, growing by 18% y-o-y from c €62m in FY22 to c €73m in FY23, relative to GGR, which increased by c 1%. The drivers of the improved free cash flow generation were the higher profitability and lower working capital investment, which were partially offset by a modest increase in capital investment (from €26.6m to €29.7m). The lower working capital investment appears to be mainly due to the phasing of payments and receipts.

The company raised equity (net proceeds of c €130m) in November 2023 and redeemed the senior notes that were due in FY24 at a net cash cost of c €142m. Therefore, by the end of the year, its gross cash position had improved to c €112m (FY22 c €102m) as had gross debt excluding leases to c €429m (FY22 c €577m). This took the net debt position to c €317m (FY22: c €474m) before leases. In addition, the company has relatively minor lease liabilities of c €16m, giving a total net debt to EBITDA of 2.6x, a significant improvement from 4.0x at the end of FY22 and the peak of 9.8x at the end of FY20.

In December 2023 Intralot announced a binding agreement for a syndicated bond loan of up to €100m with a consortium of five Greek banks, whereby two of them will act as lead arrangers under the main condition of a successful issuance of a five-year retail bond of at least €130m to be listed on the Athens Stock Exchange. The public bond offer was completed in February 2024 with an interest rate of 6% and the syndicated bond loan was completed at the end of March 2024. The proceeds will fully repay (€130m in March 2024 and €100m in April 2024) the September 2024 5.25% debt maturities that were outstanding at the end of FY23.

In addition to these debt movements, in March 2024 the US subsidiary announced that its credit agreement has been extended by a year so that the maturity date is towards the end of July 2026.

New estimates: No underlying change

We have made no changes to our underlying growth estimates for FY24 and FY25, but have updated for the changed FY23 base as well as for movements in foreign exchange rates versus the euro. Our estimates for GGR and EBITDA for FY24 and FY25 are reduced by c 3%, but estimates for PBT increased to reflect a more favourable net interest charge.

Exhibit 3: Summary of estimate changes

€m

FY23 (reported)

FY24e new

FY25e new

FY23e old

FY24e old

FY25e old

FY24 change

FY25 change

GGR

348.6

354.0

378.9

357.9

366.4

389.0

(3%)

(3%)

Growth y-o-y

1.4%

1.6%

7.0%

4.1%

2.4%

6.2%

EBITDA

129.5

138.1

151.5

133.1

142.9

155.6

(3%)

(3%)

Margin

37.1%

39.0%

40.0%

37.2%

39.0%

40.0%

Normalised profit before tax

26.1

47.7

70.2

29.3

45.1

61.5

6%

14%

Source: Intralot accounts, Edison Investment Research

Valuation

DCF-based valuation points to attractive upside

Rolling forward our DCF for FY23’s results and the changes to our estimates means our DCF-based valuation is relatively unchanged at €1.60 per share (€1.62 previously). The underlying assumptions for the DCF valuation remain as highlighted in our initiation note. The report also shows the potential further upside to the share price if the company wins new contracts. The sensitivity of our ‘base’ DCF valuation to changes in the WACC and terminal growth are shown below:

Exhibit 4: DCF sensitivity (€ per share)

WACC

7.5%

8.0%

8.5%

9.0%

9.5%

Terminal growth rate

0%

1.56

1.41

1.29

1.17

1.07

1%

1.76

1.58

1.42

1.29

1.17

2%

2.02

1.80

1.60

1.44

1.30

3%

2.41

2.10

1.85

1.64

1.47

4%

3.02

2.56

2.21

1.93

1.69

Source: Edison Investment Research

Peer valuations

Intralot’s prospective EV/EBITDA multiples for FY24 and FY25 of 7.4x and 6.8x are in line with the average multiples for its gaming technology peers. However, there is a wide range of multiples for the companies, which all enjoy attractive EBITDA margins. Adjusting for the more extreme valuations, the median multiples for its peers are lower at 5.7x and 5.1x for the same years.

Exhibit 5: Peer valuations

Share price

Currency

Market value (local m)

Market value (€m)

EV (local m)

Revenue growth (%)

EBITDA growth (%)

EBITDA margin (%)

EV/sales (x)

EV/EBITDA (x)

2024e

2025e

2024e

2025e

2024e

2025e

2024e

2025e

2024e

2025e

International Game Technology

20.43

US$

4,096

3,844

9,728

1

3

10

9

39.4

41.5

2.2

2.2

5.7

5.2

Aristocrat Leisure

41.29

A$

26,231

15,878

25,753

6

5

6

8

34.0

34.8

3.8

3.6

11.2

10.4

Evolution AB

1,333.5

SEK

288,568

24,883

23,977

17

16

17

17

70.3

70.8

11.4

9.8

16.2

13.8

Gaming Innovation Group

34.1

NOK

4,399

376

439

82

14

22

19

44.2

46.2

2.7

2.4

6.1

5.1

Inspired Entertainment Inc

8.91

US$

237

222

514

(8)

3

17

6

35.1

36.2

1.7

1.7

4.9

4.7

Kambi

89.2

SEK

2,784

240

202

1

3

(7)

1

31.2

30.5

1.2

1.1

3.7

3.7

Light & Wonder

90.37

US$

8,118

7,620

11,567

8

9

22

12

38.8

40.0

3.7

3.4

9.5

8.5

Play AGS

8.59

US$

337

316

840

4

4

22

5

45.2

45.6

2.3

2.2

5.0

4.8

Playtech

457

£

1,413

1,638

1,855

4

4

6

7

25.6

26.3

1.0

1.0

4.1

3.8

Average gaming technology

13

7

13

9

40.4

41.3

3.3

3.0

7.4

6.7

Median gaming technology

4

4

17

8

38.8

40.0

2.3

2.2

5.7

5.1

La Francaise des Jeux

35.18

6,719

6,719

6,386

9

9

8

6

24.5

23.8

2.2

2.1

9.1

8.6

Lottomatica Group

10.5

2,642

2,642

3,951

15

10

11

16

35.4

37.2

2.1

1.9

6.0

5.1

OPAP

16.65

6,162

6,162

6,390

4

4

6

3

35.2

35.0

2.9

2.8

8.3

8.1

Zeal Networks

35.2

788

788

734

14

21

19

31

29.5

31.9

5.5

4.6

18.8

14.4

Average lottery operators

11

11

11

14

31.1

32.0

3.2

2.8

10.6

9.1

Median lottery operators

12

10

9

11

32.4

33.4

2.6

2.4

8.7

8.3

Intralot

1.17

707

707

1,027

2

7

7

10

39.0

40.0

2.9

2.7

7.4

6.8

Source: LSEG, Edison Investment Research. Note: Priced 23 April 2024. Annualised to Intralot’s December year-end.

Premium to own historical multiples justified

In the charts below, we show Intralot’s historical high, average (figures quoted on the charts) and low EV/GGR and EV/EBITDA multiples, along with its prospective multiples for FY24 and FY25. In each chart we also show how the EBITDA margin has progressed.

In the first chart EV/GGR only goes back to FY16 as the company did not disclose winners’ payout before that. We estimate that Intralot’s EBITDA margin will increase towards 40% in FY24 and FY25 versus its historical margins, which were as low as c 23% in FY19 and FY20. Therefore, we would argue the company now deserves higher prospective EV/GGR and EV/EBITDA multiples given the change in business mix towards more profitable and predictable revenue streams, that is, away from more variable LO to more TSS and MC revenues and higher cash conversion.

Exhibit 6: EV/GGR multiple versus EBITDA margin

Source: Intralot, Edison Investment Research, LSEG. Note: Priced 23 April 2024.

Fuller disclosure means we can look at Intralot’s EV/EBITDA multiple over a much longer term. The prospective multiples for FY24 and FY25 of 7.4x and 6.8x are at justifiable premium to the historical average since FY07 of 5.1x, excluding FY20 when the valuation was heavily skewed by the outbreak of COVID-19. While we mostly ignore reported revenue for Intralot as it is gross of winners’ payout, our forecast EBITDA margin on revenue, not GGR, for FY24 of c 39% is significantly higher than the low- to mid-teens margins reported since FY08. Free cash generation relative to GGR is higher, which is supportive of a higher valuation than historically.

Exhibit 7: EV/EBITDA multiple versus EBITDA margin

Source: Intralot, Edison Investment Research, LSEG. Note: Priced 23 April 2024.

Exhibit 8: Financial summary

€m

2019

2020

2021

2022

2023

2024e

2025e

Year end 31 December

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

INCOME STATEMENT

Revenue

 

 

409.2

292.9

335.3

343.9

348.6

354.0

378.9

Costs

(314.6)

(226.7)

(224.9)

(221.1)

(219.1)

(215.9)

(227.3)

EBITDA

 

 

94.5

66.2

110.4

122.9

129.5

138.1

151.5

Operating profit (before amort. and excepts.)

 

 

11.9

(2.3)

39.4

52.8

61.6

76.2

91.2

Amortisation of acquired intangibles

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Exceptionals

(6.8)

(6.8)

(17.2)

(1.2)

0.0

0.0

0.0

Share-based payments

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Reported operating profit

5.1

(9.1)

22.2

51.6

61.6

76.2

91.2

Net Interest

(48.0)

(48.4)

(13.6)

(36.7)

(35.7)

(28.5)

(21.0)

JVS and associates

(17.5)

(1.5)

0.2

0.3

0.2

0.0

0.0

Exceptionals

(10.2)

(35.1)

28.2

14.6

7.4

0.0

0.0

Profit Before Tax (norm)

 

 

(53.6)

(52.2)

26.0

16.3

26.1

47.7

70.2

Profit Before Tax (reported)

 

 

(70.6)

(94.1)

37.1

29.8

33.6

47.7

70.2

Reported tax

(19.2)

(7.2)

(4.4)

(10.8)

(19.7)

(21.2)

(27.7)

Profit After Tax (norm)

(68.2)

(56.2)

23.0

10.4

10.8

26.5

42.5

Profit After Tax (reported)

(89.8)

(101.3)

32.7

19.0

13.8

26.5

42.5

Minority interests

(22.1)

(3.1)

(6.0)

(12.6)

(8.0)

(15.3)

(17.9)

Discontinued operations

7.7

(1.8)

(9.2)

5.6

0.0

0.0

0.0

Net income (normalised)

(90.3)

(59.4)

16.9

(2.2)

2.8

11.2

24.6

Net income (reported)

(104.2)

(106.3)

17.5

11.9

5.8

11.2

24.6

Average Number of Shares Outstanding (m)

147.8

147.8

148.3

249.5

416.0

604.1

604.1

EPS - normalised (c)

 

 

(61.10)

(40.19)

11.42

(0.89)

0.67

1.85

4.07

EPS - normalised fully diluted (c)

 

 

(61.10)

(40.19)

11.42

(0.89)

0.67

1.85

4.07

EPS - basic reported (€)

 

 

(0.71)

(0.72)

0.12

0.05

0.01

0.02

0.04

Dividend (€)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

BALANCE SHEET

Fixed Assets

 

 

459.0

371.7

376.5

381.0

332.5

319.6

313.3

Intangible Assets

242.9

202.0

204.3

208.6

182.3

170.2

159.1

Tangible Assets

168.7

134.3

123.2

113.8

91.6

90.8

95.6

Investments & other

47.4

35.4

49.0

58.6

58.6

58.6

58.6

Current Assets

 

 

338.5

277.1

231.1

236.1

256.2

271.7

287.7

Stocks

35.6

25.7

18.7

23.9

24.4

24.7

26.5

Debtors

131.7

151.4

105.0

109.8

119.9

121.8

130.3

Cash & cash equivalents

171.1

100.0

107.3

102.4

111.9

125.2

130.9

Other

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Current Liabilities

 

 

(135.7)

(370.4)

(115.9)

(105.7)

(320.7)

(319.8)

(323.0)

Creditors

(91.8)

(89.5)

(89.2)

(78.3)

(61.5)

(60.6)

(63.8)

Tax and social security

(3.1)

(3.4)

(5.6)

(0.8)

(3.9)

(3.9)

(3.9)

Short term borrowings and leases

(37.9)

(274.9)

(16.5)

(22.5)

(251.9)

(251.9)

(251.9)

Other

(2.9)

(2.6)

(4.6)

(4.2)

(3.4)

(3.4)

(3.4)

Long Term Liabilities

 

 

(754.9)

(497.6)

(607.1)

(599.1)

(225.9)

(218.3)

(200.2)

Long term borrowings and leases

(727.4)

(476.2)

(588.0)

(570.4)

(193.2)

(175.0)

(148.6)

Other long term liabilities

(27.6)

(21.5)

(19.2)

(28.8)

(32.7)

(43.3)

(51.6)

Net Assets

 

 

(93.2)

(219.1)

(115.5)

(87.7)

42.1

53.3

77.8

Minority interests

0.2

3.7

8.0

20.2

17.8

17.8

17.8

Shareholders' equity

 

 

(93.0)

(215.4)

(107.5)

(67.5)

59.9

71.1

95.7

CASH FLOW

Operating Cash Flow

19.8

(27.1)

100.4

105.4

101.5

109.6

130.5

Working capital

(12.1)

(8.1)

(12.3)

(16.7)

(11.2)

(3.1)

(7.1)

Exceptional & other

67.9

87.4

15.6

19.8

29.5

28.5

21.0

Tax

(14.3)

(14.5)

3.8

(12.2)

(7.2)

(10.6)

(19.4)

Net operating cash flow

 

 

61.3

37.7

107.6

96.3

112.5

124.3

125.0

Capex

(55.0)

(35.9)

(22.9)

(26.5)

(29.7)

(45.0)

(50.0)

Acquisitions/disposals

98.4

(3.5)

10.3

(125.1)

(2.2)

0.0

0.0

Net interest

(44.0)

(43.8)

(54.4)

(38.5)

(35.1)

(26.5)

(19.0)

Equity financing

(10.6)

0.0

0.1

128.9

130.1

0.0

0.0

Dividends

(41.7)

(8.5)

(6.5)

(3.7)

(4.5)

(15.3)

(17.9)

Other

(1.7)

(11.9)

(23.1)

(32.6)

(148.5)

(24.2)

(32.4)

Net Cash Flow

6.8

(65.8)

11.1

(1.3)

22.5

13.2

5.7

Opening net debt/(cash) including leases

 

 

615.3

594.1

651.1

497.2

490.5

333.2

301.7

FX

1.9

(5.3)

(3.8)

(3.7)

(12.9)

0.0

0.0

Other non-cash movements

(29.8)

128.1

(161.3)

(1.8)

(166.8)

(44.7)

(37.8)

Closing net debt/(cash)

 

 

594.1

651.1

497.2

490.5

333.2

301.7

269.6

Source: Intralot accounts, Edison Investment Research


General disclaimer and copyright

This report has been commissioned by Intralot and prepared and issued by Edison, in consideration of a fee payable by Intralot. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2024 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

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This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

General disclaimer and copyright

This report has been commissioned by Intralot and prepared and issued by Edison, in consideration of a fee payable by Intralot. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2024 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

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