GGRAsia – Novomatic sales rise 10.5pct to US$2.91bln in 2018

Novomatic sales rise 10.5pct to US$2.91bln in 2018

Apr 29, 2019 Newsdesk Industry Talk, Latest News, Top of the deck

Austrian gaming technology supplier Novomatic AG says its sales grew by 10.5 percent to more than EUR2.61 billion (US$2.91 billion) in 2018, growing at nearly three times the rate of gaming revenue worldwide, according to the firm.

In a written statement issued last Thursday, Novomatic AG said its annual earnings before interest, taxation, depreciation and amortisation (EBITDA) eased slightly to EUR555.6 million in 2018 from EUR561.9 million the year before. The group’s operating cash flow rose to EUR483.3 million from EUR422.3 million.

Novomatic AG said its revenue in all its core markets increased, but “growth was driven by European core markets, with results in Germany and Italy being influenced by regulatory measures”, said Novomatic chief executive Harald Neumann.

The company said 63 percent of its sales revenue was from its gaming operations business, which runs gaming machines around the globe, and the rest was from its gaming technology business.

Novomatic AG is part of the Novomatic group. The group comprises three holding companies: Novomatic AG, ACE Casino Holding AG and Gryphon Invest AG, which together have stakes in 300 companies.

Novomatic AG’s gaming technology business has seen recent deals to supply 200 slot machines and 125 electronic table game terminals – about 35 percent of the slots on the floor – at the Corona Resort and Casino in Vietnam.

At the international level, Mr Neumann said there was strong potential in the consolidation begun in 2018 with a view to creating maximum synergy between the various holdings of the company.

“After rapid growth over the last few years, in particular through the acquisition of other companies, we will continue to optimise internal processes and structures at an international level,” Mr Neumann was quoted as saying in prepared comments with the results announcement.

Novomatic AG announced in November a consolidation strategy designed to “optimise internal processes and structures across international borders”. The company has expanded rapidly in recent years, including taking a 52-percent stake in Australian slot machine maker Ainsworth Game Technology Ltd.

In the 2018 fiscal year, Novomatic bought smaller operators of gaming facilities in Germany, the Netherlands, Spain and Eastern Europe, predominantly gaming halls, bars and betting businesses.

The Novomatic announcement said the group operates in more than 50 countries and exports to more than 70. The group employed 23,495 people last year, up from 23,004 staff in 2017.