Novomatic’s betting revenues see 15.4 percent increase in H1

Gaming technology group Novomatic has announced its financial results for the first half of 2019. During that period, the company said it "continued its consolidation course with transnational optimization of internal processes and structures."

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 activities 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.