The Austrian gambling giant Novomatic wants to become world market leader

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At the gambling fair in Las Vegas, Novomatic boss Harald Neumann expands expansion plans. When the Group goes public, however, is open.

The Austrian gambling giant Novomatic wants to become world market leader: "This is to succeed in a period of three to five years," announced Novomatic CEO Harald Neumann in the APA interview at the important gaming fair G2E . The show is currently in Las Vegas. In Europe, Novomatic is already number one, and it is currently ranked third worldwide.

The growth that Novomatic seeks, of course, must also be financed. Only recently, however, a possible stock exchange operation was canceled this year: "We thought so very well because of course a stock exchange is also a possible financing option," stressed Neumann. "We want to continue to grow and we must continue to make a lot of money for acquisitions in order to become world market leaders."

New rules and purchase

In some points, however, it would take some more clarity to decide on a new financing of whatever kind. In Germany and Italy, new regulatory rules are applied to the gambling market. Even if they ultimately strengthen the group according to Neumann, there are challenges. The purchase of the majority shares of the Australian gambling firm Ainsworth also requires some permits. Neumann expects this by the end of the year.

One has no hurry: on the one hand, the markets would remain attractive and, of course, there are also other financing options, according to the Group CEO. "There is no need to go to the stock exchange at the moment, let us look at whether or not we start thinking about it again next year, there are other financing options," emphasized Neumann. According to experts, Vienna could only be considered as a second listing. This is due to the internationality of the Novomatic Group. A first listing appears to be realistic in Frankfurt, as Brexit is about to be launched in the UK (London).

The US market

According to Neumann, the aim of the international strategy at Novomatic is not only to show the presence of the G2E so great, but also to demonstrate its presence. "If you want to be number one worldwide, you need a higher market share in the USA," says Neumann. To the success in North America one wants to come with the mentioned 53 percent stake Ainsworth, which is already represented in the US market. The current market share of Ainsworth "is to be increased from currently three to four per cent in the next years to ten per cent".

The fact that Novomatic is Europe's market leader has been achieved thanks to a combination of self-developed game machines and the operation of gambling halls. Thus, when the company's own vending machines are successful in their halls, the company succeeds in convincing other hall operators of the use of Novomatic devices.

 

2000 playing halls in Europe

In Europe, Novomatic has more than 2,000 playing fields with 70,000 machines. Although the investments are high because halls are also operated, the business model is likely to be worthwhile. On the US market, this business model does not play in Wortsinn. This is all about bringing the devices to the market.

The company operates not only gambling halls and game machines, but is also active in sports betting and lotteries (for example Admiral). The Novomatic empire now has around 220 fully consolidated companies worldwide. In 2015, the figure was 188. Sales last year amounted to 2.3 billion euros, the profit - by means of acquisitions - almost 160 million euros. Thus, the company founded by Johann Graf , meanwhile one of the richest Austrians, cost the 53 per cent of Ainsworth in the previous year 473 million Australian dollars (336 million euros).

The average number of employees in 2016 rose to 23,391. Some 3,000 jobs are found in Austria.

http://www.kleinezeitung.at/wirtschaft/5297203/Novomatic_So-will-oesterreichischer-Gluecksspielriese-die-Nummer