Novomatic, an Austrian provider of gaming gear, reported earnings of €1.84 billion ($2.02 billion) in 2021, despite a dip in gaming operations income.
This signifies a €98.7 million, or 5.6%, rise compared to €1.74 billion in 2020, which was affected by the worldwide health crisis.
Gaming operations income was €1.03 billion, slightly lower than the €1.07 billion recorded in the previous year. This was attributed to the closure of gaming venues – an estimated two-thirds of Novomatic’s gaming venues were temporarily closed due to the pandemic from January to June 2021.
Gaming technology sales revenue accounted for the remaining €806.2 million in earnings. This figure increased by 20.3%. The company attributed this growth to its Ainsworth business, which saw sales increase from €67.9 million in 2020 to €118.3 million in 2021.
Novomatic acquired Ainsworth in 2018.
Total revenue generated by European operators using Novomatic equipment or software was €102.91 billion. A significant portion of this came from its lottery division, generating €35.48 billion. Betting operators generated €24.17 billion, followed by casino operators with €20.98 billion.
Gaming equipment turnover was €19.7 billion, with other turnover reaching €2.55 billion.
Total gaming taxes and betting fees amounted to €208.3 million, down 3% year-on-year, resulting in net profit of €1.63 billion. However, this still represents a 6.8% increase compared to the same period last year.
Expenses reached €1.33 billion, an increase of 6%.
During the 2021 financial period, Nova Matic’s income rose by 8%. Of this, staff expenses were €608.2 million, up 0.2%, while other operational expenses were €542.1 million, down 7.3%.
Other expenditures, including the procurement of materials and services, totaled €189.5 million, a rise of €8.9 million from the preceding year.
After considering changes in inventory (costing €28 million), capitalized self-construction revenue (€73.8 million), and other company revenue (€247.6 million), earnings before interest, taxes, depreciation, and amortization (EBITDA) reached €587.5 million, a substantial increase of 92% year-over-year.
After subtracting depreciation, impairment, and reversal costs (€419.2 million), operating income was €170.3 million, an increase of €417.6 million compared to 2020.
Financial result costs totaled €41.3 million, resulting in a pre-tax profit of €129 million. After taking into account income tax (€64.1 million), the net income for the year was €64.9 million, an increase of €329.6 million year-over-year.
Ryszard Presch and Johannes Gratzl, members of the Nova Matic Executive Board, stated: “The 2021 fiscal year presented us with several challenges.” “Through our innovative capabilities, flexibility, and continuous cost optimization and efficiency enhancement measures, we successfully achieved our objectives.
“We are deeply appreciative of the dedication and loyalty of our workforce, who have made a significant contribution to our quality. We are optimistic about the future and believe that the Nova Matic narrative will continue to be a success.”
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