Intralot agree to sell loss making subsidiary

All,

cntralot are making first moves to sell assets and simplify the business structure. We think the sale of the Polish subsidiary may not yield much proceeds, but should boost EBITDA by E5m (= 2017 Polish EBITDA loss). The Polish asset is an obvious sale now, given it is still cashflow negative, but should have value to an acquirer (amount not announced). Totolotek is the only subsidiary with material negative contribution we can see. Thus we believe this is the most accretive subsidiary to sell.

Intralot reported today that it has reached an agreement with the Gauslemann Group to take over its 96% share of the Polish business. The subsidiary made E82m of Sales per its 2017 accounts which should probably have risen since. While it lost E-5m in EBITDA negative and had E-15m negative equity. 

Thus we are not sure how much the company will receive in proceeds, but the sale of Poland should be a E5m boost to EBITDA.

Wolfgang