The company reported €257.4m in gross gaming revenue (GGR) from the Austrian market, indicating a 16.7% decrease compared to the previous year. However, Austrian Lotteries contributed €255.0m, experiencing a 23.6% increase. This growth can be attributed to excellent performance in lotteries and online gaming. On the other hand, the Austrian and international casinos had negligible earnings due to closures caused by the Covid-19 pandemic.
Meanwhile, the Czech market saw a significant increase of 24.3%, bringing in €95.7m in GGR. Greece and Cyprus generated €174.2m, which is a significant decline of 46.9%. This decline can be attributed to the closure of retail activities in these markets during a large part of the quarter. Italy contributed €134.3m in revenue, which is not included in the GGR. This amount is higher than the previous year’s revenue of €102.8m.
After paying gaming taxes, the net gaming revenue for the period reached €283.0m, representing a 6.1% increase compared to the first quarter of 2020. Additionally, non-gaming activities generated €27.2m, demonstrating a slight decrease of 2.9%. Other operating income amounted to €82.0m, significantly higher than the previous year’s €12.1m.
Expenses related to materials, consumables, and services reached €89.2m, showing a 34.3% increase year-on-year. Personnel expenses followed as the next major cost at €78.2m, experiencing a significant rise of 212.8%. Agents’ commissions cost the business €51.4m, which is a decrease of 40.9%. Marketing services and other operating expenses amounted to €41.2m and €18.6m, respectively.
As a result, the operating earnings before interest, tax, depreciation, and amortization (EBITDA) for Sazka reached €132.6m, indicating a 20.3% increase from the first quarter of 2020. After considering inorganic business development costs of €4.6m, adjustments for the impact of Covid-19 in Greece and Cyprus amounting to €6.9m, and other minor adjustments of €300,000, the adjusted EBITDA stood at €144.4m, showing a 4.3% increase.
Depreciation and amortization costs amounted to €51.7m, compared to €28.8m in the previous year. The impairment of non-financial assets incurred a cost of €3.8m, and the company encountered other losses of €500,000. This resulted in a profit from operating activities of €76.6m, slightly declining from the previous year’s €77.4m.
Sazka generated €1.4m in interest income but incurred €28.7m in interest expenses. Additional finance expenses amounted to €1.2m, resulting in a total finance cost of €28.5m. This left a profit before income tax of €48.1m, indicating a 10.8% increase.
After paying an income tax of €12.9m, which is 32.1% lower than Q1 2020 figures, the business recorded a profit after tax of €35.2m. This showcases a significant growth of 44.3% compared to the previous year’s profit after tax of €24.4m.
Sazka attributes the growth in revenue and profits to the consolidation of Casinos Austria AG, following the acquisition of a controlling stake by Sazka in June 2020. This positive trend is further enhanced by the consolidation of Stoiximan from November 2020. Sazka Group’s CEO, Robert Chvatal, expressed satisfaction with the strong performance in the first quarter of 2021. He looks forward to continued momentum, the recovery of impacted businesses in Greece and Austria, and progress in achieving strategic objectives.
