Equipment sales help Novomatic revenue rise in 2021

Austrian gaming equipment supplier Novomatic has reported revenue of €1.84bn (£1.52bn/$2.02bn) for 2021, despite a dip in gaming operations revenue.

This was up by €98.7m, or 5.6%, from Covid-hit 2020, when revenue was €1.74bn.

Revenue from gaming operations was €1.03m, down slightly from €1.07bn the previous year. This was attributed to closures of gaming halls- from January to June 2021, an estimated two thirds of Novomatic’s arcades closed temporarily due to the pandemic.

Revenue from the sales of gaming technology made up the remaining €806.2m in revenue. This was up by 20.3%. The company attributed this rise to its Ainsworth business, which saw its sales rise from €67.9m in 2020 to €118.3m in 2021.

Novomatic acquired Ainsworth in 2018.

Total turnover from operators using Novomatic equipment or software in Europe came to €102.91bn. Much of this came from its lottery division, with €35.48bn. Betting operator turnover was €24.17bn, followed by casino turnover at €20.98bn.

Turnover from gaming devices was €19.70bn, while other turnover was €2.55bn.

Gambling taxes and betting fees amounted to €208.3m, 3% less year-on-year, leaving net revenue at €1.63bn. However, this will still a rise of 6.8% year-on-year.

Expenses came to €1.33bn, up 6.8% year-on-year. These mostly consisted of personnel expenses at €608.2m, a rise of 0.2%, and other operating expenses at €542.1m- which fell 7.3%.

The remaining expenses were made up of material and other services purchased, which amounted to €189.5m. This was a rise of €8.9m year-on-year.

After considering changes in inventories, which created costs of €28m, income from capitalised own work at €73.8m and other company income at €247.6m, the total earnings before interest, tax, depreciation and amortisation was €587.5m. This was a significant rise of 92% year-on-year.

Following depreciation, impairment and reversal costs at €419.2m, the operating revenue was €170.3m, an increase of €417.6m from 2020.

Financial results costs amounted to €41.3m, leaving the earnings before taxes at €129m. After considering income taxes of €64.1m, the total net revenue for the year was €64.9m, up by €329.6m year-on-year.

“The 2021 financial year has shown that we have had extraordinary challenges,” said Ryszard Presch and Johannes Gratzl, executive board member at Novomatic. “With innovative power, flexibility and sustainable measures to optimize costs and increase efficiency, we were able to meet our goals successfully.”

“At this point we would like to sincere thanks to our employees. They have tremendous commitment, loyalty and commitment and thus make a significant contribution to our quality. Together we can, with confidence, look to the future and to the success story of Novomatic.”

Original Article