Half-year result 2019 NOVOMATIC AG: Stable operative business confirm consolidation course
In the first half-year 2019, NOVOMATIC recorded increases in turnover in the Gaming Operations area, in particular for the core markets Austria, Spain and the Netherlands. In Great Britain, sales in the segment rose by 14.7 percent to EUR 85.1 million. The Group, which is active in more than 70 countries, also saw a significant increase in betting revenues, which rose by 15.4 percent as compared to the previous year.
In total, at EUR 1,264.7 million, the NOVOMATIC Group’s sales revenues saw a slight reduction of 1.8 percent from the previous year (H1 2018: EUR 1,287.3 million). 63 percent of revenues came from the Gaming Operations and 37 percent from the Gaming Technology segment. The reporting period was affected by changing legal framework conditions in NOVOMATIC core markets such as Germany and Italy.
In January 2019, NOVOMATIC AG redeemed a bond issued on January 28, 2013 (emissions volume of EUR 250.0 million).
Stable operative business developments
In the first half-year, cash flow from operating activites reached EUR 242.6 EUR, an increase compared with the previous year (H1 2018: EUR 167.7 million). A particular highlight is the strong positive free cash flow after acquisitions to the amount of EUR 186.2 million (H1 2018: EUR -297.0 million). EBITDA also remained stable on the previous year’s level at EUR 297.1 million (H1 2018: EUR 313.0 million) due to the amended statement in accordance with IFRS 16.
Focus on consolidation and positive forecast
After rapid growth over the last few years, particularly through the acquisition of companies, NOVOMATIC will continue to optimize internal processes and structures at an international level. In doing so, the gaming technology group hopes to increase company efficiency and achieve strong synergies between the various shareholdings. In the second half of 2019, the bulk of the existing technology business in the United Kingdom is to be sold, once all regulatory requirements have been met.
The NOVOMATIC Group is one of the biggest international producers and operators of gaming technologies and employs more than 30,000 staff worldwide. Founded by entrepreneur Professor Johann F. Graf in 1980, the Group has locations in more than 50 countries and exports high-tech electronic gaming equipment and solutions to more than 70 countries. The Group operates around 255,000 gaming terminals and video lottery terminals (VLTs) in its some 2,100 plus gaming operations as well as via rental concepts.
Through its numerous international subsidiaries, the NOVOMATIC Group is fully active in all segments of the gaming industry and thus offers a diversified Omni-channel product portfolio to its partners and clients around the world. This product range includes land based gaming products and services, management systems and cash management, online/mobile and social gaming solutions as well as lottery and sports betting solutions together with a range of sophisticated ancillary products and services.