Novomatic is suffering from the corona pandemic
During the lockdown due to the corona pandemic, many companies had to accept lost sales. However, it is relatively unusual that it also affected companies that were not completely closed. One of them is Novomatic.
Sales losses of up to 20 percent
According to official estimates, Novomatic could suffer sales losses of 20 percent this year. This fact is due to the last few months, in which gambling halls with Novomatic slot machines were also affected by the closure . But Novomatic also offers online games. However, online casinos were not affected by the corona pandemic - the opposite seems to be the case. Many increased their use of online casinos after local casinos and gambling halls were closed.
The estimate of the loss of sales comes from the rating agency S&P. If the estimate is correct, it would be a case of particular hardship. Novomatic has not had to deal with such facts in recent years. On the contrary: This company, which will turn 40 this year, has made a steep climb. However, the company was not always able to fall back on its own resources; debts were also incurred. And now a repayment is due for this: In the next 12 months, liabilities of 450 million euros have to be repaid . A bond is due for disbursement in three more years.
Solutions to these financial problems may already be in place. Novomatic recently sold shares in Casino Austria to a Czech company . According to rumors, Novomatic could sell part of its properties. To what extent the financial problems will definitely be resolved has not yet been determined.
Other reasons for the economic downturn
Apart from the corona pandemic, other reasons could have led to the drop in sales:
- Ibizia affair: As part of this affair , the company is accused of bribery. The priority here was to obtain licenses. In addition, politicians are said to have been involved, who should be encouraged to change the laws in favor of Novomatic. The investigation has been ongoing since 2017 and is still ongoing.
- Novomatic's bonds have since been downgraded and are now considered speculative.
Ryszard Presch and Johannes Gratzl are currently doing their job as managing directors and have come up with some ideas to boost sales again. In terms of its core business, the company is concentrating on Germany, Italy and the UK. The USA is also in focus. In this country, Novomatic hopes to be able to set up slot machines outside of casinos. In addition to bars, petrol stations would also be considered.
Novomatic would like to focus more on online gambling
Thomas Graf, the founder's son, admitted some time ago that online gambling is becoming more and more important. But that is not due to the corona pandemic. Long ago, Novomatic realized that local sales are not always in a positive relationship to the income generated. The production of slot machines should by no means be discontinued and the sale of one of the Novomatic branches is also out of the question. If this is actually the case, the employees would not have to worry about their jobs. After all, 3,000 people work in the region around Vienna and even 30,000 employees worldwide .
Even if the online sector moves forward, it is very likely that not many employees will have to be laid off. In addition, Novomatic has already employed programmers. This profession could become even more important in the future.
So far, Novomatic has offered the following games:
- Slot mix
- Sic Bo
- Online Slots
If the Novomatic company concentrates more on online games in the future, this range will be expanded. There are already some online casinos that offer Novomatic games. These casinos include, for example, Mr. Greeen, betsafe and Dunder . If the range of games is expanded, significantly more casinos will probably use the games. The new State Treaty on Gaming, which is due to come into force in Germany next year, could give Novomatic a new upswing.
The advantages of online casinos
The corona pandemic clearly showed that online casinos offer many advantages. These were not closed due to the corona virus and every player could still try their luck. In addition, online casinos offer bonuses that a local casino does not offer. Free spins without prior deposit minimize the financial risk and could also generate high profits. Slots with jackpots offer particularly exciting chances of winning . But also the popular table game roulette is offered in numerous variants and thus increases the prospect of a high profit.
Nobody has to worry about security at an online casino. The regulations that must be met to obtain a license are extremely strict. As a result, you are playing with a reputable gambling provider who also offers some measures to prevent gambling addiction. You will look in vain for such measures at a local casino.