GGRAsia – Novomatic reports record revenue, profit down

Novomatic reports record revenue, profit down

Apr 10, 2017 Newsdesk Latest News, Top of the deck, World

Austria-based gaming equipment maker Novomatic AG on Friday reported revenue of approximately EUR2.29 billion (US$2.43 billion) for 2016, up 10 percent year-on-year compared to the EUR2.09 billion achieved in 2015. Novomatic said the 2016 tally was the highest annual revenue the company has recorded in its 36-year history.

The biggest increase was in the gaming machine segment, where revenue rose 14.0 percent year-on-year to EUR1.03 billion, according to the firm’s annual report.

Profit for full-year 2016 however was down 27.4 percent from the previous year, to EUR154.4 million, the firm said.

Group earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 4.6 percent year-on-year to EUR588.5 million. The company said its EBITDA margin was 25.7 percent in 2016, down from 29.6 percent the previous year.

The expansion of Novomatic’s business in the past two years led to increases in operating and personnel expenses. Operating expenses grew by 6.9 percent year-on-year to EUR756.7 million in 2016, while personnel expenses increased 19.2 percent to EUR676.8 million. Novomatic had 23,849 employees worldwide at the end of 2016.

Harald Neumann, chief executive of Novomatic, said in a statement included in Friday’s press release: “Not only did we achieve excellent financial results in 2016, but we also set out clear strategic paths that are particularly important for the further expansion of the group of companies.”

Those plans include the acquisition of a majority stake in Australian company Ainsworth Game Technology Ltd. The Australian firm said in a filing in June last year that its shareholders had approved the sale of 52.2 percent of company founder Len Ainsworth’s shares to Novomatic.

Mr Neumann confirmed in Friday’s release that the group plans to expand its business in Asia. “Thanks to the strong presence of Ainsworth in Australia, Asia, North and South America, Novomatic will, in future, also intensify its work in these markets,” said the Novomatic CEO.

The Austria-based firm in January announced the promotion of Lawrence Levy to vice president of global sales, with effect from February 1, 2017, in a sign of “clear commitment to strategic expansion,” including in Asia.