The finance sector has experienced significant growth in recent times, with an increase of 23.2% compared to the same period in 2020. This growth can be attributed to Sisal’s online division, which saw a remarkable rise in revenue by 90.9% year-on-year, amounting to €185.6m. Within the online division, online betting contributed €93.8m, experiencing a surge of 110.8%, while online casino revenue rose by 90.9% to €77.0m. Online lotteries and bingo also saw an increase in revenue, totaling €8.8m, which is a rise of 29.5%. Online skill games reached €5.8m, marking an 11.3% increase.
In contrast, retail revenue faced a decline of 25.3% year-on-year, amounting to €196.8m. Retail lottery accounted for €94.8m of this revenue, showing a rise of 26.5%. However, amusement with prizes (AWP) games contributed €42.5m, experiencing a decrease of 40.8%, and video lottery terminal (VLT) revenue declined by 32.7% to €30.6m. Retail betting revenue also suffered a significant drop of 59.5%, amounting to €28.8m, due to the impact of Covid-19 lockdowns on in-person gaming offerings.
Sisal’s international revenue from lottery supply deals in other markets reached €77.3m, showcasing a substantial increase of 514.7%. The majority of this revenue, €72.0m, was generated from Turkey, where Sisal operates the Milli Piyango national lottery. Additionally, Sisal’s partnership with Loterie Maroc contributed €4.9m from Morocco, experiencing a rise of 94.7%. However, Spanish revenue declined by 26.9% to €333,000.
Although Sisal’s expansion yielded positive results, there was an increase in operating costs. Service costs were the largest outgoing expense at €200.0m, marking a 17.2% increase from the first nine months of 2020. Amortisation, depreciation, and impairment charges amounted to €100.3m, rising by 9.3%. Personnel costs accounted for €64.7m, reflecting a 10.7% increase, while other operating expenses generated €2.9m, showcasing a rise of 29.8%. Expenses related to the purchase of raw materials and consumables reached €11.5m, indicating a growth of 43.3% year-on-year. On the other hand, the impairment of financial assets decreased by 62.3% to €2.9m. Despite these costs, Sisal achieved an operating profit of €50.2m, marking a substantial increase of 286.2%.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the year totaled €103.1m, reflecting an increase of €111.2m compared to the previous year. Income taxes amounted to €67.7m, while losses on financial items reached €8.4m. Financial asset impairment profits were €2.9m, showcasing a 62.3% decrease year-on-year. Sisal also recorded gains of €15.9m from non-cash items, reorganization costs, and start-up development costs. The overall net profit for the period amounted to €103.7m, showcasing a significant increase of €111.2m compared to the previous year.
“Results for the third quarter of 2021 were very positive, sharply increasing compared to 2020, which had been marked by compelling challenges, but also by even greater opportunities for the whole sector,” said Francesco Durante, CEO of Sisal. “Today’s results confirm the soundness of our choices and let us look at the market with confidence and the awareness of the excellent progress we have made on the three sustainability pillars and on digitalization and internationalization – the core principles of our growth strategy.”
Recently, Sisal filed for an Initial Public Offering (IPO) on Italy’s stock exchange, Borsa Italiana’s Mercato Telematico Azionario (MTA).
