First-half profits double for Novomatic

Gumpoldskirchen-based Novomatic is the parent firm for Astra Games, Admiral Casinos and Entertainment AG and Austrian Gaming Industries among others and revealed that its earnings before interest, tax, depreciation and amortisation for the six-month period rose by 58.6 million euros year-on-year to 284.3 million euros while its operating income improved by 57.6 percent when compared with the same period in 2011 to 171.2 million euros.

The Austrian firm additionally stated that earnings from ‘normal business activity’ reached 160 million euros, which was an over 93 percent year-on-year progression, while this figure after tax was boosted by 18.1 million euros when matched up against the similar 2011 six-month period to 47.7 million euros.

All of this saw Novomatic declare that its profit for the period had risen by almost 112 percent year-on-year to 111.9 million euros while cashflow from operational activities swelled by some 72 million euros when set alongside the comparable period in 2011 to hit 206 million euros. “In the first half of 2012, the global economy improved in comparison to the previous year,” read a statement from Novomatic.

“However, the growth dynamic further flagged. This was predominantly due to developments in the European Currency Union. The uncertainties prior to the elections in Greece and the critical situation of the Spanish banks markedly tarnished the confidence of investors and consumers. The national debt crisis in individual countries in the Euro zone, Spain and Italy in particular, has led to interest rates for state loans rising at an alarming rate.

“An increasing divergence in the development of the economy in Europe is becoming apparent. While countries like Germany, Finland and Austria are characterised only by a decrease of the economic dynamic, the southern European area countries, in particular, are affected by a deep recession that could last for several years.

“Development in the Latin American economic area is rated optimistically by the International Monetary Fund (IMF). In its forecast, the IMF assumes a growth in the economy of more than three percent for the current year. Although the crisis in Europe has had an effect on the Latin American economy, particularly due to a connection with the Spanish banking system, the effects should remain limited.

“These difficult economic conditions have characterised the market environment of Novomatic in the first half of 2012. Thanks to synergies that have arisen as a result of the dual strategy as well as the regional diversification of Novomatic, the effects of the crisis on sales turnover and profit were able to be limited,” concluded the statement.