Pan European lottery operator SAZKA Group, together with its subsidiaries and associates, has published its financial results for the six months to 30 June 2020 alongside an update on current trading.
The headline figures reflect a half-year beset by the COVID-19 pandemic, with key metrics showing decline in line with the whole lottery sector. During the period the firm saw consolidated gross gaming revenues decrease by 28% to €652m (H1 2019: €909m), primarily as a result of the impact of COVID-19 on land-based sales , while consolidated operating EBITDA decreased by 42% to €167m (H1 2019: €287m).
Consolidated profit after tax from continuing operations decreased by 90% to €42m (H1 2019: €145m). However, most restrictions to which the group’s businesses were subject as a result of COVID-19 were lifted by June and those that were impacted by the health crisis have recovered well.
The firm noted that land-based sales of most products in most geographies are approaching, or in some cases exceeding, sales during the same period last year. Online sales, which increased significantly in the Czech Republic, Austria and Greece during the period most directly impacted by COVID-19, have continued to perform strongly.
Robert Chvatal, SAZKA Group CEO, commented: “Our diverse geographic exposure, game portfolio and sales channels, the wealth of knowledge and expertise we have within the organisation, and the agility and resilience of our team meant that we were well placed to deal with COVID-19.
“They also positioned us well for recovery when the situation began to normalise. Over the last few months performance across geographies and products has been returning towards, or in some cases is above, pre-pandemic levels.”
Chvatal added that while the future impact of COVID-19 on businesses and the economy is hard to predict, the pandemic has allowed the group to accelerate its strategy of increasing online sales, including traditional products and digital-only games. “This was already a major strategic focus for us and our experience in the last several months has only emphasized the benefits that it can bring,” he said.
He added: “I’m also delighted that we were able to close two strategic M&A transactions. After closing the acquisition of Novomatic’s stake in CASAG, we look forward to working together with the Austrian state, CASAG and Austrian Lotteries to take the lotteries business to further successes, and to build a sustainable and profitable Austrian casinos business, leveraging the strength of the brand and the team.
“In August we closed an important acquisition in Greece by taking a majority stake in Stoiximan’s Greek and Cypriot business. Not only does this further strengthen our position as the undisputed leader in the Greek and Cypriot markets, but it also represents a step-change in OPAP’s online presence.”