Casinos Austria generated €1.48bn (£1.27bn/$1.60bn) in gross gaming revenue (GGR) for the 2023 financial year, an increase of 4.4% yearly, bolstered by its lottery segment.
Lottery saw a GGR increase of 1.5% to €946.8m in 2023. For the Casinos Austria division alone, GGR was upped by 15.8% to €304.5m, while Casinos Austria International brought in €212.1m.
Consolidated profit for the year came to €182.8m, up by 18.3%. Looking at Casinos Austria’s business segments, GGR at sports betting operator Tipp3 – in which Austrian Lotteries has a 56% stake – fell 2.7%. The group noted that 2023 had been a year without any major sporting events.
Video lottery terminal business WINWIN saw GGR increase by 3.3% year-on-year.
The group contributed €724m in taxes and duties in 2023, 4.8% higher than in 2022. Casinos Austria noted that this upholds its position as “one of the largest taxpayers in the country”. Gaming-related taxes grew 2.3% to €612.0m.
But the largest jump of the year came from a combination of other taxes, duties and social security contributions, which increased by 20.5% to €112.0m.
Martin Škopek, Casinos Austria’s CFO said the company had performed well in spite of an “economically challenging environment” brought on by the Covid-19 pandemic.
“Despite an economically challenging environment in recent years, we have also managed to be economically successful with an entertainment offering in 2023,” he said.
He added that the group’s realignment strategy – which kicked off in 2020 – is beginning to pay dividends.
“The path of realignment and innovation that we have successfully taken is paying off thanks to the commitment and know-how of our employees, which means we are well prepared for all the challenges that lie ahead.”
Casino Austria’s board agreed to implement the restructuring plan in July 2020 following a proposal from the company’s management team. This outlined plans to reduce costs by over €40m and majorly reduce employee headcount. A report from Austrian newspaper Kurier said redundancies could hit 500 employees.
At the time, then-chief executive Bettina Glatz-Kremsner called the move “the largest reorganisation in the history of the company”.
The restructuring also aimed to lower costs by reducing personnel and material expenses and carrying out efficiency reviews of its casino operations.
Erwin van Lambaart, CEO of Casinos Austria, said the 2023 results show a commitment to focusing on the group’s operations, for the benefit of customers.
“Looking at the past financial year makes me proud; once again the Casinos Austria and Austrian Lotteries Group achieved a positive balance and also made a significant contribution to the federal budget,” he commented. “This balance sheet is also a valuable confirmation of our company’s course to focus even more closely on our company value and the experiences we offer our guests and customers, especially in the post-Corona period.”
Van Lambaart also confirmed that there would be a new tender process ahead to regain licensing compliance in Austria.
“… we’re going into the new year with great confidence, with our most important goal in mind: regaining the licenses for Austria, for lotteries, casinos and also online,” he explained. “There is no call for tenders yet, but we will apply for all licences and prove that we are the best partner for this in the future.”
Casinos Austria is currently operating on licences that are set to expire in 2027 and 2030. It is unclear when the new tender process for licences will begin.
https://igamingbusiness.com/finance/lottery-leads-the-way-as-casinos-austria-ggr-hits-e1-48bn-fy23/