The company’s online segment was able to achieve a significant increase with €31.4m additional revenues compared to the first half of 2019
Austrian giant Novomatic is a legend in the slotmachine - market and one of the largest gaming technology companies in the world, employing more than 25,000 people. The publicly listed company had a whooping 5.1 billion euro turnover in 2019 but the COVID pandemic has hit their global operations with leaving the company with a 36% decline in revenues in the first half of this year.
Until July of 2020 Novomatic Group’s revenues amounted to €805.4m, compared to €1,259.4m in the same period of 2019. The decline of 36 per cent was attributable to almost all markets with Italy being hit the hardest. The far-reaching lockdown measures completely interrupted the operations of slot arcades, casinos and betting sites for about two months.
Only the company’s online segment was able to achieve a significant increase with €31.4m additional revenues compared to the first half of 2019.
A spokesperson of Novomatic said: “The current reporting period was strongly impacted by the consequences of the COVID-19 pandemic. In the majority of the Novomatic Group’s core markets, national governments introduced measures, in particular temporary lockdowns, from March 2020 onwards to stem the spread of COVID-19. Among other things, these measures included the temporary closure of gaming facilities (casinos, slot arcades and single sites/bars) operated by the Novomatic Group.
The closure also affected the group’s Gaming Technology business, resulting in lower sales of gaming machines as well as lower rental income due to the revenue sharing model applied in many markets. The total number of operated locations declined by approximately 30 against the previous year to around 1,940 sites. Due to partial closures, the number of operated gaming devices came in at approximately 41,500.”
Novomatic added: “In Germany, total revenues of the Gaming Technology segment decreased by €7.2m (-5.2 per cent) from €138m in the first half of 2019 to €130.8m in the first six months of 2020. The rental portfolio of gaming machines declined by around 1,900 units since the beginning of the year, resulting in a corresponding decline in rental revenues.”
“The Italian market was hit particularly hard by the COVID-19 pandemic in the first half of 2020, resulting in strict lockdown orders to curb the spread of the virus. On top of this, the stakes-based gaming tax was increased several times already in 2019, resulting in an additional reduction in revenues. Revenues of the Italian companies falling into the Gaming Technology segment amounted to €29.4m in the first half 2020 compared to € 90.2m in the previous year, corresponding to a decrease by €60.8m(-67.4 per cent).”
The company achieved the highest savings in their marketing department where expenses were reduced by €19.7m from €63.5m in the first half of 2019 to €43.8m in the first six months of 2020.
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