Austrian Casag posted a loss in the third quarter
The Czech gaming company Sazka, which holds the majority in Casinos Austria, earned significantly less in the first nine months of 2020. The consolidated net profit collapsed by 58 percent to 90.4 million euros, while gross gaming revenues rose by four percent to 1.42 billion euros. Without including Casinos Austria, gross gaming revenue, which is decisive in the industry, would have fallen by 18 percent.
In the third quarter, when the corona-related restrictions were relaxed, all business areas developed well, said Sazka boss Robert Chvatal on Monday. Online sales have remained high.
In the third quarter, gaming revenues increased by two thirds to EUR 769 million compared to the same period of the previous year, while net profit shrank by a third to EUR 48.5 million.
In Austria, the restructuring of the domestic casinos is now making good progress. The aim is to save 45 million euros in costs per year and to make the casinos fit for the future and profitable.
The Austrian Lotteries, which are part of the Casinos Austria Group, paid a dividend of EUR 100 million in September, according to Sazka's financial report.
Casinos Austria AG (Casag) has been consolidated since June 26, 2020, the Czechs hold 55.48 percent of the Austrian state-owned company.
According to Sazka's financial report, Casag made a loss of EUR 8.2 million in the third quarter. The gross gaming revenue was EUR 303 million. The operating Ebitda (earnings before interest, taxes, depreciation and amortization) was reported at 63.6 million euros. The results include an extraordinary restructuring provision of EUR 54 million.
The recent lockdown in Austria hardly affects the business of the local lotteries, since the products – such as the lottery or online gambling – are still available to customers.
The lotteries are the Casinos Austria Group's cash cow, not least because it also includes the win2day online platform, the only website on which games of chance can be offered in Austria. However, there are a large number of other gaming portals that operate in a legal gray area.
The 12 casinos in Austria had to close again due to the corona regulations, as did the VLT amusement arcades. Most of the Casag casinos abroad are also closed, according to Sazka.
The Czech Sazka has a significant stake in the OPAP lottery company in Greece and in Lottoitalia in Italy. The group from Prague recently applied for the fourth national lottery license in Great Britain together with British entrepreneur Keith Mills. Sazka is owned by billionaire Karel Komarek's KKCG group.
