or Novomatic, the first half of 2017 was again characterized by an expansion of its business activity. Through organic and acquisition-driven growth, revenues (before gaming taxes and betting fees) reached an all-time six-month high of EUR 1,218.7 million, compared to EUR 1,094.9 million in the first half of 2016.
Despite these positive key performance indicators, ordinary earnings before interest, taxes, depreciation and amortization (including impairment and reversal of impairment) (EBITDA) stagnated and the operating profit (EBIT).
The aforementioned tax hikes in Italy and Austria, numerous one-time effects had a major impact on profitability.
In particular, the preproduction for the legally required conversion of all gaming devices in Germany in 2018 led to additional costs in the upper single digit million range in the first half of 2017. Further, earnings were weighed down by negative foreign currency effects linked to a weaker US dollar and British pound.
A further decrease in earnings resulted from a worsening of the earnings position for companies in the I-New Group as well as from an increase in start-up losses for the Novo Lottery Group.
"We confirm to the best of our knowledge that the consolidated interim financial statements as of June 30, 2017 give a true and fair view of the financial position, financial performance and cash flows of the Group as required by the International Financial Reporting Standards (IFRS) as adopted by the European Union (EU), and that the consolidated management report of June 30, 2017 gives a true and fair view of the development and performance of the business and the position of the Group, together with a description of the principal risks and uncertainties which the Group faces," said the Executive Board of Novomatic in an official statement.