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Novomatic records a drop in sales

Many companies and corporations suffered significant sales losses during the Corona shutdown . As a rule, these arose when a store was closed or a group suffered a drop in orders. However, no one could have guessed that it would also affect a large corporation like Novomatic. However, there seem to be other reasons why Novomatic is generating less revenue in 2020.

Spielautomaten stehen in Spielhallen, Casinos und anderen öffentlichen Locations.

The business success of the Novomatic Group began with slot machines. For the first time in 2020, this group is suffering a drop in sales.(©Bru-nO/Pixabay)

Decline in sales due to closed arcades

Novomatic is busy since its inception, with thedevelopment and production of slot machines. The former Canadian company Löwen Entertainment GmbH has been part of the Novomatic Group since 2003 and also makes slot machines. Furthermore, Novomatic is the owner of Admiral Sportwetten GmbH. Both areas - casinos and betting shops - were closed during the Corona lockdown. The sales lost in this way are of course reflected in the books of the Novomatic Group.

Many casinos, arcades and betting shops have already been able to open again. But even these are still showing a decline in sales. This may be due to the existing rules regarding the corona virus. Such restrictions reduce gameplay andresult in lower attendance.

The financial portalBloomberg recently published a statement based on estimates by the S&P rating agency. According to this information,the sales decline in 2020 could be as much as 20 percent. In the end, Novomatic can be happy that this group is also in the online gaming sector. Online casinos also enjoyed great popularity during the Corona pandemic and were visited even more than usual. This made it possible to absorb a large part of the decline in sales.

Popular online casino games from Novomatic

It can often be seen that slot machines from the Novomatic Group are known and popular. However, many do not know that thisgroup also develops online games of chance and offers them via various online casinos. The slots have the following variants:

  • Golden Ark
  • Book of Ra
  • Two Sevens
  • Red Lady
  • Always Hot Deluxe

But fans of classic casino games will also get their money's worth at Novomatic. The following games are currently available from Novomatic:

  • Poker
  • Sic Bo
  • Baccarat
  • Roulette
  • Blackjack

Many well-known online casinos now use the games developed by this manufacturer:Mr. Green, Dunder and betsafe are just a few examples.

According to official reports, the son of the Novomatic founder would like to focus more on online gambling in the future. This idea is due to the fact that the operation of local casinos and arcades cannot always be run profitably. Online casinos, on the other hand, are associated with lower personnel costs.In the future there will most likely be more games from Novomatic to discover.

How does Novomatic solve the drop in sales?

Now one might think that such a successful company as Novomatic would not have problems with a one-off drop in sales. After all, this isa company that has had nothing but successes since it was founded 40 years ago. Unfortunately, this year's drop in sales could bring some problems: Novomatic has had to take out loans in recent years. One of these would have to be repaid within the next twelve months. The amount is 450 million euros. In addition, a bond will be due for payment in three years.

Novomatic also employs over 30,000 people worldwide. This causes considerable costs. One fact could complicate the repayment of the debt and the bonds: The aforementionedrating agency has re-evaluated Novomatic and stamped it "speculative". This puts this group in a bad position. Given that the Ibiza affair, which has been going on for years, has already damaged the group's reputation, the new classification could do further damage.

It is also unclear how Novomatic intends to solve the financial problems. There are currently rumors that this company wants to sell part of its real estate. On the other hand, only some time agoa part of Novomatic shares was sold to a Czech company. Apart from this, Novomatic hopes to be able to place more slot machines in the USA. There are ideas for bars, petrol stations and other public locations.

A little story about Novomatic

The founder of the Novomatic company - Johann F. Graf - started together with Gerhard Brodnik in 1974.It existed at that time Pinball import business. Six years later, Graf separated from his business partner and founded the Novomatic company. The aim of the company was to manufacture slot machines. Gradually, other lines of business were added: online casinos, development of casino games, sports betting and casino management systems.

Step by step, Novomatic expanded its business area and was no longer limited to Austria. This group is now represented in 70 countries worldwide andachieved a turnover of 5 billion euros in 2018.

All of this naturally led to a high level of awareness, which, as is well known, does not only bring positive things with it. In recent years, this group has repeatedly made negative headlines. In the first place, corruption and bribery were repeatedly accused. The last allegation is still not off the table. This led to the managing director leaving his post.The investigation into the Ibiza affair is still ongoing. The outcome of this will continue to be followed with interest.

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The article was published on September 4th, 2020 in the magazine by cpaws-ov.org under the keywords, ,,, ,, published.
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