Amid a climate of economic unpredictability exacerbated by the global pandemic, Casinos Austria Group has reported a significant uplift in its Gross Gaming Revenue (GGR), rising to €1.48 billion for the fiscal year of 2023. Bolstered by gains in multiple business sectors, the gaming conglomerate has seen a sustained and promising financial trajectory. The group’s lottery segment, a foundational element of their business model, experienced a 1.5% increase in GGR to €946.8 million.
The organization’s prosperity extends to its Casinos Austria division, which has witnessed an impressive 15.8% increase in GGR amounting to €304.5 million. The international arm, Casinos Austria International, contributed notably as well, bringing in €212.1 million. The group’s solid performance extends to their bottom line, with consolidated profits soaring by 18.3% to reach €182.8 million.
In spite of the lack of major sporting events in 2023 that often drive betting activity, GGR at Tipp3, the sports betting operator wherein Austrian Lotteries holds a 56% stake, saw a slight dip of 2.7%. Nonetheless, this was more than offset by growth in other sectors. The video lottery terminal business WINWIN, for instance, saw year-over-year GGR growth of 3.3%.
Casinos Austria demonstrated its fiscal responsibility and contribution to the national economy by delivering €724 million in taxes and duties, marking a 4.8% increase compared to the previous year. Gaming-related taxes alone grew by 2.3% to €612.0 million. Remarkably, other taxes, duties, and social security contributions took the lead with a 20.5% hike, amounting to €112.0 million. This performance reinforces Casinos Austria’s status as one of the most significant taxpayers in Austria.
Against a backdrop of economic challenges fueled by COVID-19, Martin Škopek, the CFO of Casinos Austria, praised the company’s resilient and successful entertainment offerings throughout the year. Škopek highlights that the strategic realignment and innovation path that the group embarked on in 2020 is now yielding positive results, thanks to the dedication and expertise of their workforce, preparing the group well for future challenges.
This strategic realignment, an ambitious restructuring plan, was set in motion in July 2020 following recommendations from the management team aimed at reducing operational costs by over €40m and significantly downsizing the workforce. Austrian media indicated potential redundancies affecting up to 500 employees.
The restructuring phase, described by then-CEO Bettina Glatz-Kremsner as the company’s most extensive reorganization in its history, focused on cutting costs through personnel and material expenses reduction as well as efficiency evaluations of its casino operations.
Erwin van Lambaart, the current CEO of Casinos Austria, expressed his pride in the 2023 results and emphasized the company’s dedication to optimizing its operations for customer benefit. He lauded the group’s contributions to the federal budget and cited the positive outcomes as a testament to their value-driven focus and enhanced customer experience, particularly in the post-Corona period.
Looking towards the future with optimism, van Lambaart divulged that the company is gearing up for a new tender process aimed at renewing its Austrian licensing—a crucial step for the organization. While the timetable for the new licensing tender is not yet determined, Casinos Austria is operating with licenses expiring in 2027 and 2030, amplifying the urgency for the upcoming application process.
The robust financial performance and stronghold reflecting in the 2023 fiscal reports thus not only embody a recovery narrative in the wake of the pandemic but also set the stage for the strategic maneuvers Casinos Austria will undertake to secure its dominion within the gaming industry for the foreseeable future.
