Central Europe
SAZKA Group Q3 and 9M Results and Update on Current Trading
SAZKA Group a.s. announces its financial results for the three months to 30 September 2020 and provides an update on recent developments and current trading.
Q3 2020 Financial highlights
- Consolidated gross gaming revenue increased by 66% year-on-year to €769 million. Excluding CASAG1, GGR increased by 1% year-on-year.
- Consolidated Operating EBITDA2 increased by 37% year-on-year to €197 million. Excluding CASAG, Operating EBITDA increased by 6%.
- Consolidated Adjusted EBITDA, which excludes certain one-off items, increased by 32% year-on-year to €207 million.
- Consolidated profit after tax decreased by 33% year-on-year to €48 million, impacted by a €54 million restructuring provision at CASAG. Excluding CASAG, profit after tax increased by 3% year-on-year.
9M 2020 Financial highlights
- Consolidated gross gaming revenue increased by 4% year-on-year to €1,421 million. Excluding CASAG, GGR decreased by 18% year-on-year due to the impact of COVID in the second quarter.
- Consolidated Operating EBITDA decreased by 15% year-on-year to €364 million. Excluding CASAG, Operating EBITDA decreased by 26% year-on-year.
- Consolidated Adjusted EBITDA, which excludes certain one-off items, also decreased by 15% year-on-year to €375 million.
- Consolidated profit after tax from continuing operations decreased by 58% year-on-year to €90 million. Excluding CASAG, profit after tax decreased by 50%.
Pro-rata LTM Q3 2020 highlights3
- Pro-rata LTM Adjusted EBITDA was €379 million.
- Pro-rata net debt / Adjusted EBITDA was 3.2x and Pro-rata priority net debt / Adjusted EBITDA was 0.5x at 30 September 2020.
Key strategic initiatives
- In July, the Supervisory Board of CASAG approved a plan to optimise the cost structure of the casino business in Austria. This plan is underway and expected to achieve c.€45 million of annual cost savings by FY22.
- In July and November, OPAP acquired additional interests in Stoiximan Group’s Greek and Cypriot business (“SMGC”), the leading online gaming business in Greece. OPAP now holds an 84.5% interest in SMGC.
- In November, KKCG and SAZKA Group announced that funds managed by affiliates of Apollo Global Management, one of the world’s leading investors in gaming, will invest €500 million in a newly formed holding company which will become the owner of SAZKA Group at a valuation of €4.2 billion.
Trading update
- Restrictions which had impacted some of our land-based businesses (in particular, in Greece, Italy and our casinos in Austria and internationally) in H1 were lifted at the end of Q2, and sales of these businesses recovered well in Q3.
- Our land-based businesses in the Czech Republic and Austria, which were not materially impacted by restrictions in H1, have continued to perform well.
- Online sales, which increased significantly during the period most impacted by COVID, have generally remained at these higher levels.
- Since late October/early November, there has been a second wave of COVID restrictions, having some impact on our businesses.
- The vast majority of the land-based POS of our businesses in the Czech Republic, Austria and Italy remain open and continue to sell our products.
- The majority of the POS in these locations are located in shops and other outlets which provide essential products and services which therefore remain open. These include tobacconists, supermarkets and petrol stations.
- Our land-based business in Greece and Cyprus as well as our casinos have been more affected by the current lockdown and are currently closed.
Central Europe
NOVOMATIC builds the Group’s largest photovoltaic system in Lower Austria
NOVOMATIC has underscored its clear commitment to sustainability by installing the Group’s largest photovoltaic system. More than 4,600 solar panels have been installed on the roof of the headquarters in Lower Austria, covering a total area of 20,000 m2 and ceremoniously commissioned in the presence of Lower Austrian Governor Johanna Mikl-Leitner, NOVOMATIC’s Executive Board and the mayor of Gumpoldskirchen, Ferdinand Köck.
The PV system, with a size equivalent to three football pitches, will produce around two million kilowatt-hours of electricity every year, thereby enabling the company to meet a substantial portion of this location’s annual energy needs. In addition to being used in the offices and production facilities, this green electricity will also find its way into the company’s dedicated charging stations for its fleet of e-vehicles. It is a similar situation with international subsidiaries in countries such as Germany, Italy, Spain, Romania, North Macedonia, Bosnia, Poland, South Africa and Australia, which are already meeting substantial portions of their electricity needs from dedicated PV systems.
State Governor of Lower Austria, Johanna Mikl-Leitner, emphasizes “Lower Austria is a pioneer in efforts to develop the use of wind energy and photovoltaics. Half of all the wind power produced in Austria and a quarter of all the country’s photovoltaic electricity already comes from Lower Austria today. We can do this because many companies do their bit to ensure the green and sustainable future of the state’s economic engine, investing in the development of renewable energy sources. Thank you for this investment and the trust placed in the economic hub that is Lower Austria.”
“The completion of the Group’s largest photovoltaic plant is not just a key milestone in the sustainability strategy of NOVOMATIC AG, but it also means we have sent a clear signal of our intentions to foster a strong and efficient energy future. After all, it is only by taking responsibility that business success can be guaranteed in the long term,” says the Executive Board of the NOVOMATIC AG Group.
Installing the new PV system on already built-up areas helps NOVOMATIC to consistently reduce its carbon footprint, and enabling it now to save more than 1,100 tons of CO2 emissions every year, the equivalent of 90,500 trees compensating for CO2. The concept of “Going Green” is firmly anchored in the company’s comprehensive ESG program as Europe’s leading gaming technology group. In addition to its work to expand the use of photovoltaics across the Group, the company is also focusing its attention on monitoring resources and expanding e-mobility, all with a view to permanently cutting international CO2 emissions.
Central Europe
ComeOn Group’s Sportsbook hub in Austria relocates to new office space to facilitate further growth
ComeOn Group announced the relocation of its sportsbook, tech and risk management hub in Graz, Austria, to a new and central office space. The new office marks yet another milestone in ComeOn’s investment to accelerate its proprietary sportsbook platform and deliver a differentiated product proposition to its sportsbook players.
ComeOn’s proprietary sportsbook platform and in-house trading team is a key part of its strategy to grow the sportsbook business according to the company’s growth strategy. The office in Austria marks the central gravity of the platform development and opens up room for the teams to grow further as ComeOn levels up its investment into their sportsbook part of the business.
Juergen Reutter, Chief Executive Officer at ComeOn Group, said: “We are very excited about our new sportsbook engineering and trading hub in Graz. Sportsbook is a key driver of our growth plans ahead and we are well on track with the strategic goal we have set to double our sportsbook business in the next three years. By investing in technology and our proprietary sportsbook platform we are not only providing our customers with top-notch entertainment experiences but also ensuring that our employees have the tools and environment they need to innovate and excel. Our new office is not just a place to work; it’s a hub for collaboration and growth, allowing us to better serve our customers.”
The new office opened its doors officially at the beginning of October and ComeOn Group remains dedicated to providing creative and modern office spaces across all their locations for its employees to keep on innovating to deliver the most exciting entertainment experiences for their customers.
Central Europe
Wildz becomes the new sponsor of FC Schalke 04
Royal Blue has a new addition: Wildz is joining FC Schalke 04 as an official sponsor with immediate effect. An initial two-year partnership has been agreed upon with Rootz Limited, Wildz’s parent company.
Matthias Tillmann, CEO of FC Schalke 04, looks forward to the collaboration: ‘As in football, Wildz focuses on fair play and the fun of the game. The company works with the world’s leading gaming providers and offers entertaining and responsible gameplay.’
Customers can control their gambling activities and thus prevent gambling addiction problems. Wildz has specialized tools to help players manage their time and spending limits and provides information on professional tools and access to customer service in five languages.
For Schalke fans, Wildz will be visible for the first time at all future home games on the board in the VELTINS-Arena. In addition, the gambling operator will now present the official crowd figures with its logo on the video cube and S04’s social media channels.
Sam Brown, CEO, Wildz: ‘We are extremely excited about partnering with FC Schalke 04, one of Germany’s most historic and iconic football clubs. S04 stands for an intense love for the game shared by its millions of unique and passionate fans. The same passion and intensity is reflected in our own philosophy at Rootz, which is why we see this collaboration as a perfect synergy to reach new heights together.’
As a licensed and regulated gaming operator, Wildz offers its customers a wide range of games on a sophisticated platform. In addition to a dynamic rewards system, the platform impresses with exclusive features, innovative and efficient programming, and impressive graphics and content.
In this way, Wildz has succeeded in establishing itself as a leading online gaming operator and has already won several titles, such as ‘Mobile Operator of the Year’ (2024). Like the best entertainment, data protection and complete privacy are top priorities at Wildz.
Rootz Limited operates its services with a license from the Joint Gambling Authority of the federal states. This license was granted throughout Germany in September 2022 for virtual machine gaming in accordance with sections 4 to 4d in conjunction with 22a GlüStV 2021.
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