Novomatic reports record first half revenues

The company said that compared to the prior-year period, the number of self-operated sites – including casinos, sport betting venues and bingo operations – increased from about 1,800 to almost 2,100. "Operated gaming machines also achieved a new record with an increase of about 9,000 machines to currently 70,700 machines,” it added.

Novomatic said the revenue growth in the first half of the year was driven by acquisitions in the markets of Germany and Spain, as well as other small corporate acquisitions in Italy and the Netherlands.

"These future-oriented investments ensure the strong position of Novomatic in the global market for the long-term. The current half-year figures with record sales show that we are on the right track with our international growth strategy. This is also exactly what we will pursue in the future,” said firm’s chief executive, Harald Neumann.

EBITDA stood at €282.5 million in the first six months of 2017, down 1.6% from a year earlier. Operating profit for the period declined by 26.3% year-on-year to €104.2 million, "due to higher scheduled depreciation and impairment,” said the firm. Novomatic reported a net profit of €56.1 million for the six months to June 30, down by 25.7 % from a year earlier.

The company said its profitability was negatively impacted by several factors, including: tax hikes in Italy and Austria; pre-production costs related to the required conversion of all gaming devices in Germany in 2018; and negative foreign currency effects linked to a weaker U.S. dollar and British pound.

Novomatic is currently in the process of acquiring a majority stake in Australian slot machine maker Ainsworth Game Technology. "Due to suspensive conditions, in particular, the required approvals by various international licensing and regulatory authorities, the closing of this transaction is currently expected for the year end 2017,” Novomatic said in its interim report.

Nonetheless, the Austria-based company has already taken over the management of sales for Ainsworth Game in Europe. Novomatic’s global sales division will be responsible for Ainsworth Game’s European sales, according to a release earlier this month.