Turkish deal hurts Intralot

Shares in lottery systems supplier Intralot fell more than four percent yesterday on concerns that its bid to operate a sports betting company in Turkey was priced too low. Intralot shares fell 4.42 percent to 9.08 euros while the ATHEX general index advanced 0.74 percent to 3,267.94 points. The Inteltek venture of Intralot and Turkish mobile phone operator Turkcell submitted the best bid in a tender to operate the Turkish sports betting company Iddaa. The joint venture had made an offer to accept 1.4 percent of revenue, the lowest of three offers in the second and final round of bidding. Proton Securities said in a note it is a «Pyrrhic victory for Intralot since the profit margin will be significantly thinner than under the previous contract.» «The winner will be allowed to expand the agent network to 7,000 outlets from 4,000 currently, thus enhancing the top line, but this cannot make up for the loss of profit due to margin erosion,» it added. A final decision from Turkish authorities is expected in the coming days.