Novomatic have announced their 2016 financial accounts and in the process displayed a clear strategy for growth through acquisition and market expansion.
With revenues up, and an Ainsworth purchase in the process, the results provided a fairly safe haven for any flotation aspirations the group has in the not too distant future.
The family-owned company said revenues were up 10 percent over the period to E2.3bn, with machines making up 45 percent of sales.
While FY profits fell to E154m, this 27 percent reduction in net profits was largely attributed to acquisitions which brought higher staff and rental costs, and led to writedowns in Spain and Britain.
“Not only did we achieve excellent financial results in 2016, but we also set out clear strategic paths that are particularly important for the further expansion of the group of companies,” said Harald Neumann, Novomatic CEO.
Combined with revenues from sister companies ACE Casino Holding AG and Gryphon Invest AG the group bagged E4.4bn in the 12 months to NYE, up from E3.9bn the year prior.
Novomatic acquired several companies in Britain, Germany, Italy and Spain over the year, and is currently in the process of a majority takeover in Australian machine manufacturer, Ainsworth Game Technology. The latter is due to be completed by Q3 2017.
While the fall in profits was due to these transaction costs, the group says it expects to see further revenue increases in Britain, Spain and Italy, as well as in Romania and Croatia.
Regulatory changes in Germany and a pending court decision in Austria however, leave prospects in its closerto- home markets less certain.