Gambling firm Novomatic posted their first half financial results, claiming higher revenues but noting that regulatory pressures may have an impact in the future.
Key financial indicators for the first half ending June 30th, 2018 were:
- Revenues up 12.6% from the first half of 2017
- Sales of €1.36 billion, a new record
- Earnings up 11.6% to €318 million
- Gaming machine sales revenues up 96.2%
While the results were strong, the company warned that regulatory pressures in Australia, Germany, and Italy could have a negative impact moving forward.
Speaking about the pressures Novomatic revealed, "(Germany and Italy) likely to continue organic regulatory pressure, while Australia remains a market of high regulatory risk for machines, in our view".
"Equally, Novomatic's online position is now even weaker after the loss of key German revenues - now representing only 3.9% of group revenue (B2B and B2C).
"Novomatic has therefore successfully diversified away from Germany machines risk, but while geographic risk has been diluted, the macro-led risk of exposure to gaming machines has increased for the group from both from a regulatory and channel-shift perspective.
"Novomatic's online contraction also illustrates the dangers of trying to have one's cake and eat it from a regulatory perspective - especially in 'uncertain' markets."