BUSINESS

Codere and Novomatic both benefit from online gaming; Amaya revenues also up

TAGs: Amaya Gaming, Codere, Novomatic

Online BingoSpanish gaming group Codere has benefited from their first foray into the online gambling industry. Figures released for the first half of 2011 show that operating revenue was up 20.3% to €632.2m for the whole group. In addition, operating profit rose 13.7% to €77.1m and a lot of it was down to their entry into the Italian online bingo market. Operating revenue for the Mediterranean country increased to €91.2m, a rise of an impressive 40.5%. Spain was the one place that Codere lost money as a smoking ban at their casinos and bingo halls meant operating revenue was down 14.1% to €86.2m. The Iberian company moving into the Spanish online gambling industry when it opens early next year could remedy this. As long as the government officials decide to wake up from the winter siesta season.

Austrian-based Novomatic is another company that owes a debt of gratitude to the online gambling industry as revenues increased for the multi-platform gaming industry firm. Revenues for the entire group increased 17% to €655m and a solid cash flow from operating activities of €134m. The release stated that, “rises in the proceeds from proprietary gaming operations, from the other activities segment (on- line gaming) and from rentals” contributed to the increased revenues. If you hear yodeling at the next iGaming social then you’ll know who it is.

Amaya Gaming Group saw revenues increase from $2.4m to $4.9m for the first half of 2011 as they released their first results since acquiring Chartwell Games earlier this year. The revenue increase was offset slightly by a net loss of $2.9m thanks to the aggressive acquisitions that they’ve been making. The successful launch of an SMS lottery product in Kenya contributed towards the revenue growth. Mr. David Baazov, President and Chief Executive Officer of Amaya Gaming Group, added, “Looking forward, we are in the process of implementing several of the additional contract wins that we have announced in recent months, and we expect these initiatives to lead to further growth in our recurring revenue base in the coming periods. The addition of the Chartwell Technology business will also help us accelerate our growth beginning in our fiscal 2011 third quarter.”

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