GGRAsia – Novomatic reports record turnover for 1H, profit down

Novomatic reports record turnover for 1H, profit down

Aug 26, 2016 Newsdesk Industry Talk, Latest News

Gaming technology provider Novomatic AG posted a “new record” in turnover in the first six months of 2016, the firm stated in a Wednesday press release.

The Austria-based gaming manufacturer and operator recorded a turnover of EUR1.09 billion (US$1.23 billion) between January and June, up by 10.8 percent in year-on-year terms.

Earnings before interest, taxation, depreciation and amortisation “remained stable” at EUR 287.2 million – a decline of 1.2 percent in year-on-year terms – “as a result of considerable strategic investments, notably in the lottery segment, as well as negative foreign exchange effects,” Novomatic stated.

Novomatic reported a net profit of EUR75.5 million for the six months to June 30, down by 26.1 percent from EUR102.2 million in the second quarter of 2015. The result was impacted by amortisation costs and negative foreign exchange effects.

The Novomatic group operates more than 235,000 gaming devices and video lottery terminals in more than 1,600 outlets, including gaming parlours and casinos. The company is active in several gaming segments around the world including casino, lottery, sports betting, online and mobile.

The firm said its workforce rose to an all-time high of almost 22,400 workers during the first half of 2016, representing an increase of 12.1 percent in year-on-year terms.

“We pursued our growth strategy during the first half of the year and have undertaken a number of important expansions,” said Novomatic chairman, Harald Neumann, in a statement included in the press release.

Novomatic is acquiring a majority stake in Australia-based slot machine maker Ainsworth Game Technology Ltd.

Commenting on that deal, Mr Neumann stated it would give “a massive boost” to Novomatic’s market position in Australasia, as well as in North and South America.

Novomatic traditionally has a strong presence in Europe and Latin America, and is now “really looking at markets such as North America and Asia,” Mike Robinson, manager of international communications for Novomatic, told GGRAsia in an interview in May.