Intralot S.A. Integrated Lottery Systems and Services Reports earnings results for the quarter and first half of 2018. Reported consolidated revenues for the period of first half of 2018 increased by 2.4% or EUR 12.9 million versus a year ago, with the main contributor for this increase being the B2C segment and more specifically, the markets of Bulgaria, Poland and Azerbaijan, supported mainly by higher previous years' Sports Betting activity. Company see that its technology and support services activity line contracted by 3.8% or EUR 4.2 million, reducing its contribution to the overall group revenue by 2% year-over-year. The main driver of this adverse performance has been the software license sale in Australia in second quarter of 2017 amounting at EUR 4 million, followed also by an adverse FX movement in the local currency has been devaluated by 9.2% against euro year-over-year, thus explaining the overall decrease of EUR 4.9 million. Consolidated revenues for the semester increased by 2.4%, reaching EUR 547.6 million and by 0.5% for the quarter. Gross gaming revenue for the quarter compared to prior year declined by 1.2% due to revenue shortfall in Australia, partially counterbalanced by an increasing payout related to revenues. Last 12-month operating cash flow contracted significantly as the aftermath of the non-incorporation of disposed business and the adverse working capital movement in the first semester driven by the inventory buildup for the new projects and the payment of the loan due liability. Net CapEx for the period is the same as in the first semester of 2017.

EBITDA for the quarter reached EUR 37.5 million, 6.9% lower than same period a year ago, driven mainly by the absence of the nonrecurring income in Australia and the adverse FX movement, while deterioration compared to prior quarter followed the same seasonality trends as of last year. Net income after tax and minority interest stands at a EUR 3 million profit for the quarter compared to a EUR 9.4 million loss in the same period a year ago as a result of less depreciation, better net interest, higher income from investments and positive FX valuation from assets held in hard currencies, USD mainly, in countries where the currency has been significantly devalued. Company see on top of last 12-month figure revenue to remain flat compared to the same figure of first quarter and EBITDA contracted by 1.6%.

The net debt increase for the second part of the year is expected at around EUR 50 million, EUR 55 million. In the second half of the year, it will be around EUR 76 million CapEx minus a EUR 10 million return on the working capital, which has increased in the first semester.

Company expect net debt to be at -- between EUR 625 million and EUR 630 million at the end of the year. Full year CapEx and investment is expected in the range of around EUR 120 million. The full year guidance of CapEx is in the range of EUR 119 million, EUR 120 million, yes. It is the same as company had communicated at the beginning of the year. It was EUR 115 million in the beginning of the year. Company see in terms of FX fluctuation, especially based on the recent effects, if they stabilize, company see that this may go up to EUR 20 million in terms of EBITDA effect for the full year result.