Intralot earnings at risk as EM strategy backfires, bond slide scuppers refi plans

29 June 2018

Listed Greece-headquartered gaming technology group Intralot is under pressure on material contracts in several regions, which could curtail EBITDA, turn the group free cashflow negative and send actual net leverage adjusted for minority interests heading towards the 7x mark. That together with a sector repricing has hit its 2024 bonds, derailing plans to refinance its 2021 bonds, according to three buysiders and a broker.


Intralot is a seasoned operator that has built up a portfolio of lucrative contracts to operate lotteries and sports betting in a number of emerging markets, usually by teaming up with local partners. The model worked well initially, being relatively capital-light with earnings on a stable, marginally upward trajectory over the last few years.


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