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Sazka records Q2 revenue growth after Casinos Austria acquisition

| By Nosa Omoigui
European lottery operatoSazka Group has recorded revenue figures of €740.1m (£633.9m/$875.5m) for the second quarter of 2021.

The figure represents a 200.1% increase on the same period last year before the acquisition of a majority stake in Casinos Austria was finalised – with Casino Austria’s contribution in 2020 factored in the increase stands at 77.3%.

A slight majority of the overall revenue figure, €373.6m, came from the Greece and Cyprus region dominated by OPAP – with its subsidiary Stoiximan contributing €120.7m of that total. €228.6m came from Austria, with €211.0m of that figure coming from Austrian Lotteries. The Czech Republic generated a further €129.9m.

Non-gaming revenue increased slightly from €55.7m in 2020 (pre Casinos Austria acquisition) to €63.1m this year. Other income sources brought in €187.5m.

Numerical lotteries were the most lucrative revenue source generating €334.9m – up from €231.0m in 2020. Sports betting raised €157.9m, while igaming contributed €135.6m €58.2m was attributed to instant lotteries, and video lottery terminals and casinos added €45.5m.

The quarter’s operating expenses totaled €425.9m. Materials and consumables were the biggest expenditure at €115.6m, followed by agent commissions (€102.7m), personnel expenses (€74.2m) and marketing costs (€58.8m).

Sazka’s pre-tax profits for the quarter came to €127.0m. After accounting for €12.7m of income tax, this resulted in a net profit figure of €114.3m – up 1.2% from the same period in 2020.

Looking at the first half of the year, Sazka generated €1.27bn in revenue for 2021, up 94.1% compared to 2020’s corresponding period.

Operating expenses totaled €756.2m, up by 76.2% from last year. Breaking these expenses down, agent commissions were €154.1m, materials and consumables were €204.8m, while marketing and personnel expenses amounted to €252.4m. Other expenses were €40.4m and depreciation and amortisation totalled €104.5m.

Pre tax profits for the first half of the year came to €214.2m. This became €177.1m after tax, representing a 321.7% increase from 2020.

The company also noted the impact that the novel coronavirus has had on business so far, noting that further pandemic-related impacts are hard to predict.

A Sazka statement said: “The outbreak of communicable diseases on a global scale may significantly affect the Group’s businesses.

“We cannot predict the effects that the ongoing COVID-19 pandemic, as well as future
epidemics of new strains of COVID-19 or of other diseases, and any resulting unfavourable social,
political, and economic conditions and decrease in discretionary spending or travel may have on us.”

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