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Czech Republic – SAZKA posts 66 per cent GGR rise

By - 14 December 2020

SAZKA’s financial results for the third quarter show consolidated gross gaming revenue increased by 66 per cent year-on-year to €769m. Consolidated operating EBITDA increased by 37 per cent year-on-year to €197m.

Consolidated adjusted EBITDA, which excludes certain one-off items, increased by 32 per cent year-on-year to €207m. Consolidated profit after tax decreased by 33 per cent year-on-year to €48m, impacted by a €54m restructuring provision at CASAG.

SAZKA noted that restrictions which had impacted some of the company’s land-based businesses, particularly in Greece, Italy and casinos in Austria and internationally, in H1 were lifted at the end of Q2, and sales of these businesses recovered well in Q3.

SAZKA’s land-based businesses in the Czech Republic and Austria, which were not materially impacted by restrictions in H1, have continued to perform well whilst online sales, which increased significantly during the period most impacted by COVID, have generally remained at these higher levels.

The vast majority of the land-based POS of the company’s businesses in the Czech Republic, Austria and Italy remain open and continue to sell its products. The majority of the POS in these locations are located in shops and other outlets which provide essential products and services which therefore remain open. These include tobacconists, supermarkets and petrol stations.

SAZKA’s land-based business in Greece and Cyprus as well as casinos have been more affected by the current lockdown and are currently closed.

Q3’s results mean that consolidated gross gaming revenue over the first nine months of the year increased by four per cent year-on-year to €1,421m. Consolidated operating EBITDA decreased by 15 per cent year-on-year to €364m.

Consolidated adjusted EBITDA also decreased by 15 per cent year-on-year to €375 million and consolidated profit after tax from continuing operations decreased by 58 per cent year-on-year to €90m.

In July, the Supervisory Board of CASAG approved a plan to optimise the cost structure of the casino business in Austria with the plan underway and expected to achieve circa €45m of annual cost savings by FY22.

In July and November, OPAP acquired additional interests in Stoiximan Group’s Greek and Cypriot business, the online gaming business in Greece. OPAP now holds an 84.5 per cent interest in SMGC.

In November, KKCG and SAZKA Group announced that funds managed by affiliates of Apollo Global Management will invest €500m in a newly formed holding company which will become the owner of SAZKA Group at a valuation of €4.2bn.

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