Digital focus for lottery operator Sazka as profits halve

Pan-European lottery operator Sazka Group has revealed a drop of 51 per cent in profits after tax during the opening quarter, as it resolves to strengthen its digital offering going forward.

Gross gaming revenues decreased by 11 per cent to €405m (Q1 2019: €458m) as Coivd-19 adversely impacted land-based sales, while adjusted EBITDA saw a fall of 23 per cent to €117m (€151 million).

Consolidated profit after tax fell to €43 million in the quarter (€87m), with the group’s land-based activities in Greece, casinos and VLTs in Austria and product sales in Italy closed as a result of government or regulatory measures in March.

The group’s POS networks for lottery products in the Czech Republic and Austria were not subject to restrictions and a substantial majority have operated without interruption.

All of the group’s operations which were closed have now reopened.

Robert Chvatal, Sazka Group CEO, said: “Our online and digital-only offerings have been a major strategic focus for the group for some time and I am very pleased that the changes in consumer behaviour as a result of the Covid-19 epidemic have allowed us to develop our product offering and increase our user base faster than would have otherwise been the case, with significant increases in registrations and active users as well as several exciting product launches.

“OPAP’s recently announced acquisition of Stoiximan Group’s Greek and Cypriot business represents a further important step as we develop our digital entertainment offering, and will complement the stepchange in OPAP’s online activities during the last few months.”