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Austria – Novomatic enjoys 20 per cent revenue increase with all markets up

By - 4 September 2023

In the first half of 2023, the Novomatic AG Group generated €1,582.6m in revenues, compared to €1,319.1m in the same period of 2022, up 20 per cent, due to the good performance and demand for Novomatic products as well as the acquisitions made.

The increase in Group revenues was attributable to all markets Italy up by €99.9m, Germany up by €49.4m, Eastern Europe up by 29.8m, Austria up by 21.8m, the nnline division, up by €21.7m, the other markets region, up by €15.1m, the United Kingdom up by €12.6m, the Netherlands up by €8m and Spain up by €5.2m. Revenue increases in 2023 compared to the 2022 period were also observed across all revenue items. The largest increase in revenue in absolute terms was attributable to the operation of slot machines, which rose by €124.5m or 20.8 per cent). Here, the markets of Germany, up by €40.2m, Italy up by 25.8m and Eastern Europe, up by €24.9m recorded the most significant advances

The Group also benefited from the strong product performance of Novomatic equipment. The number of gaming devices operated increased to 77,042, up 3,555 compared to the same period in the previous year), while the number of leased gaming devices stood at 142,159 as of June 30, 2023, up by 3,093 compared to the same period in the previous year). At 13,912, the number of gaming devices sold was lower than in the same period of the previous year (15,141 units), while the order backlog increased
significantly compared to the first half of 2022.

Group revenue (before gaming taxes and betting fees) increased from €1,319.1m in the previous year to €1,582.6m in the first half of 2023. This corresponds to an increase by €263.6m, up 20 per cent. Both the Gaming Technology and Gaming Operations segments reported higher revenues than in the prior year period. Positive developments were evident in all regions.

In the Gaming Technology segment, the acquisition of the Italian HBG Group in November 2022 in particular resulted in higher revenues, mainly due to revenues from concessionaire activities. In Germany, revenues from rent and management services increased despite a shrinking overall market. In Austria and in the Other Markets region, the positive development was mainly driven by sales revenues as well as income from rent and management services. The Online division recorded growth in eBusiness revenues as a result of its expansion strategy.

In the Gaming Operations segment, all regions reported an increase in revenues in the first half of 2023. The strongest revenue growth was achieved with the operation of slot machines, where revenues increased by €124.6m in the first half of 2023. This growth is due to both the good product performance of Novomatic’s gaming machines and the group’s expansion strategy. In addition to revenues from the operation of slot machines, increases were also recorded in the items live game, up €31.2m, betting revenues, up €16.8m, eBusiness revenues, up €15.8m and catering and hospitality revenues, up €8.1m.

Several acquisitions were completed in the first half of 2023. In the Online segment, the Greentube Group was able to further expand its international portfolio in both software development and system and platform technology through the acquisition of Ineor d.o.o. and the Alteatec Group. The acquisition of Italy’s 187 S.r.l., which operates approximately 630 AWPs and 690 VLTs in 25 gaming arcades, enabled the Company to advance its growth strategy in one of the world’s highest-grossing gaming markets.

Further acquisitions of smaller companies, primarily focused on the operation of gaming arcades, were made in several markets. In the United Kingdom, for example, five acquisitions of smaller operators with a total of 15 arcades were completed. With these and other acquisitions, the Group aims to further consolidate and enhance its market position in the corresponding core markets. Spielbank Berlin’s main location at Potsdamer Platz was reopened with a grand inauguration ceremony in the second quarter.
With a total area of 8,500 m² on six floors, 500 slot machines, and 40 gaming tables with roulette, touch bet, blackjack and poker, this is now one of the most modern casinos in Germany.

Austria’s ADMIRAL Casinos & Entertainment AG successfully applied to renew its license for regional games of chance by gaming machines in Upper Austria. According to the notice of June 2023, the corresponding permit has been issued by the Province of Upper Austria. At the end of May 2023, the construction of the photovoltaic system at the headquarters in Gumpoldskirchen was started. With approximately 4,800 panels and a maximum production capacity of approximately 2,264,000 kWh, one of the largest photovoltaic installations in Lower Austria is being built on the roofs of NOVOMATIC AG. In the future, a significant part of the electricity consumed will be generated from emission-free solar energy, making a sustainable contribution to the protection of the environment

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