Intralot and MDJS Extend Operator Contract
Athens-based gaming operator, Intralot, has confirmed a two-year extension to its games operator contract with La Marocaine Des Jeux et des Sports (MDJS). The renewed deal will remain in effect until December 2025 and will allow Intralot to continue its operation of MDJS’s lottery, as well as offering sports betting and other games of chance.
Having established a partnership with MDJS in 2010, Intralot has been the driving force behind MDJS’s lottery games, including Tifo and Chrono. The long-term collaboration between the two entities was intended to continue until 2023, following Intralot’s reduction of an eight-year deal with MDJS, which was initially set to end in 2023.
Despite MDJS seeking a new supplier earlier this year, they ultimately agreed to extend their agreement with Intralot for an additional year. The recent two-year extension, announced on Friday, serves to further solidify the longstanding relationship between Intralot and MDJS.
However, while Intralot celebrates its extended contract with MDJS, the company faces financial challenges. Intralot reported a return to net profit in the third quarter of 2023, with a 2.2% year-on-year increase in gross gaming revenue (GGR) to €5.6m. Nevertheless, the company also experienced a €21.7m (7.2%) decrease in consolidated turnover from 2022, largely attributable to the loss of revenue stemming from the expiration of its Malta license in July 2022, resulting in a GGR loss of €43.9m.
As a result, Intralot’s third-quarter earnings reports raise concerns about the company’s ability to meet its 2024 bond obligations. To address these financial pressures, Intralot issued €135m in new shares and indicated that it lacked the necessary cash resources to cover the majority of its outstanding debt.
Despite the challenges, Intralot saw an 8.1% increase in revenue in Q3 of 2023 compared to the same period in the previous year. Additionally, the company’s EBITDA increased by 14.7% in the first nine months of the year, attributed to promising growth in Turkey, Croatia, Taiwan, and the US. Intralot’s financial challenges may be a shadow over their recent contract extension with MDJS, but the company continues to seek avenues for growth and stability in the gaming industry.