Operator News
Austria – Novomatic investigates IPO
By James - 9 March 2017
The Austrian Press and Reuters News Agency have published articles intimating that the private owners of Austrian gaming technology group Novomatic are exploring an initial public offering that could value the company at more than €6bn ($6.3bn).
The listing of one of the world’s largest makers and operators of gaming equipment and casino management systems would most likely take place in London, according to Reuters. Novomatic’s owners last week sent out a renewed request to banks to pitch for roles in the listing, which could take place as early as later this year.
Novomatic, owned by the family of its billionaire founder Johann Graf, had revenues of over €4bn in 2016. It reported earnings before interest, tax, depreciation and amortisation of 287 million euros in the first half of last year and employs around 28,000 people in around 50 countries. While software and technology focused peers trade at up to 15 times their expected core profit, Novomatic is more likely to fetch a multiple of roughly 10 times, given that its core business is less profitable physical gambling machines.
A sale of a minority stake to a private equity group is also a possibility that Novomatic’s family owners are considering, they said, adding that Asian gambling groups would also be likely to show interest in the company. “We have been active with bonds in the capital market for many years and evaluate different financing options on the capital market. There are currently no concrete decisions regarding other financing projects,” a Novomatic spokesman said.
