Gaming supplier Novomatic AG reported revenue of approximately €2.53 billion (US$3.07 billion) for 2017, up 11.1 percent year-on-year compared to €2.27 billion achieved in 2016. The company said the 2017 tally was the highest annual revenue the company had recorded in its 37-year history.
The results saw Novomatic sales surpass €2.5 billion for the first time. Annual net profit, however, declined in 2017, dragged by one-off items, it added. The revenue growth was “due to a significant increase in the slot arcades operated by Novomatic worldwide,” the firm said in its annual report. The group is active in several gaming segments around the world, including casino, lottery, sports betting, online and mobile.
The company said the number of self-operated locations—including casinos, sports betting outlets and bingo facilities—rose from about 1,900 to just over 2,100 as of the end of 2017. The firm also reported an increase of nearly 5,000 units in devices it operates worldwide, to about 65,000 in 2017.
Novomatic said revenue from its gaming operations segment grew by 19.7 percent year-on-year, to nearly €1.58 billion, representing about 63 percent of the firm’s aggregate revenue in 2017.
Sales in the gaming technology segment, in which Novomatic acts as a manufacturer and technology supplier for the gaming industry, reached €937 million last year, down 1.1% percent compared to €947 million in 2016.
“In 2017, Novomatic carried out an intensive economic evaluation,” the company said in the report. “As a result, one-off effects were added to the balance sheet as reflected in increased depreciations. This is largely due to the implementation of new regulations, such as in Germany, but also due to depreciations that were necessary for several international group subsidiaries, as well as foreign currency losses.
“Provisions were increased in order to compensate for potential future losses from individual associated companies,” the company added.
Harald Neumann, chief executive of Novomatic, said the company in 2018 would be focusing on efficiency, after several years of expansion. “After rapid growth over the last few years, in particular through the acquisition of companies, the time has come to optimize internal processes and structures on an international level,” Neumann said in a press release. “It’s the best way to prepare for the future.”
