Novomatic Reports €1.84 Billion Earnings in 2021 Despite Pandemic Impact

The Austrian provider of gaming gear, Novomatic, reported earnings of €1.84 billion (£1.52 billion/$2.02 billion) for the year 2021, despite a reduction in income from gaming activities.

This represents a rise of €98.7 million, or 5.6%, from €1.74 billion in 2020, which was affected by the global health crisis.

Revenue from gaming operations was €1.03 billion, slightly lower than the €1.07 billion recorded in the previous year. This was attributed to the closure of gaming halls – an estimated two-thirds of Novomatic’s entertainment centers were temporarily shut down from January to June 2021 due to the pandemic.

Sales revenue from gaming technology accounted for the remaining €806.2 million in earnings. This saw a growth of 20.3%. The company attributed this increase to its Ainsworth business, which experienced a rise in sales from €67.9 million in 2020 to €118.3 million in 2021.

Novomatic acquired Ainsworth in 2018.

Total revenue for European operators using Novomatic equipment or software was €102.91 billion. The majority of this came from its lottery division, at €35.48 billion. Betting operator revenue was €24.17 billion, followed by casino revenue at €20.98 billion.

Gaming equipment revenue was €19.7 billion, with other revenue at €25.5 billion.

Total gaming taxes and betting fees amounted to €208.3 million, down 3% year-on-year, resulting in a net profit of €1.63 billion. However, this still represents a 6.8% increase from the same period last year.

Expenses reached €1.33 billion, an increase of 6%.

During the 2021 fiscal period, Nova Matic witnessed an 8% surge in its overall earnings. Personnel expenses amounted to €608.2 million, exhibiting a slight 0.2% rise, while other operational expenditures reached €542.1 million, experiencing a 7.3% decline.

Additional outlays, encompassing procurements of materials and services, totaled €189.5 million, reflecting an €8.9 million augmentation from the preceding year.

Following the incorporation of inventory fluctuations (€28 million), capitalized self-performed work revenue (€73.8 million), and other company revenue (€247.6 million), earnings before interest, taxes, depreciation, and amortization (EBITDA) reached €587.5 million, signifying a substantial 92% upswing compared to 2020.

After subtracting depreciation, impairment, and reversal charges (€419.2 million), operating earnings amounted to €170.3 million, representing a €417.6 million increase in comparison to 2020.

Financial result costs totaled €41.3 million, culminating in a pre-tax profit of €129 million. After deducting income tax (€64.1 million), net income for the year stood at €64.9 million, reflecting a €329.6 million increase compared to the previous year.

Ryszard Presch and Johannes Gratzl, members of the Nova Matic Executive Board, remarked: “The 2021 fiscal year presented us with a series of challenges.” “Through innovation, adaptability, and sustainable cost optimization and efficiency enhancement measures, we successfully attained our objectives.”

“We extend our heartfelt gratitude to our workforce. Their unwavering dedication and loyalty have made a significant contribution to our quality. We are confident that together we will continue to write the success narrative of Nova Matic in the years to come.”

Register for the online gaming news updates.