Plant Novomatic realignment?

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Peter Brandt 2. September 2020

As recently published documents, the Austrian gambling group Novomatic is planning to realign it outside of Europe. The reason for this project is the appearance of financial problems. However, these result not only from the economic consequences of Corona pandemic, which has severely damaged the entire Austrian gambling industry, but also from the still-running late consequences of the Ibiza affair. Now even the good rating Novomatics and thus the company’s creditworthiness was downgraded. The traditional company from Austria wants to find new happiness beyond the Atlantic in the United States-both in the online gambling game and in land-based business.

For a long time Novomatic defied the consequences of the Corona crisis and Ibiza affair, but this time seems to have come to an end. ((© Klimkin / Pixabay)

US market as a salvation?

That the whole Austrian gambling industry is located in a struggle for existence, is no secret. Even though Austria as a stronghold of gambling If the gambling companies there did not manage to defy the consequences of the Corona crisis-at least in economic terms; And as it turns out, this even applies to the most popular Austrian gambling provider Novomatic.

Novomatic – a valuable brand with financial problems. Novomatic is currently Europe’s largest gaming technology group and has recently been voted “Casino Supplier of the Year” again. In addition, the company managed to climb the most valuable brand in Austria behind Red Bull. With around 30,000 employees in over 70 countries, Novomatic can also show international success and non -European reputation. Novomatic was founded in 1980 by the Austrian Johann Graf, who is said to be the second richest private entrepreneur in Austria with a private assets of $ 6.6 billion.

How that US magazine Bloomberg exclusively reported, show from numerous documents from the group that the economic situation is so precarious that corporate management is over a Full realignment of business operations think. The business magazine also relies on official court files and interviews with more than 25 informed business partners, employees and investors.

As a geographical The aim of the realignment was allegedly selected by the United Stateswhere a billion dollar market was created after the far -reaching liberalization of private gambling – and online and offline. As an experienced and successful gaming company, Novomatic apparently sees the opportunity to stabilize its own business economically.

Lower creditworthiness, however, more and more debts

However, it is not just economic problems that make it difficult for the long -successful group to prospering growth in Austria and the entire European market. The traditional company’s very positive reputation is also affected after the group’s high-ranking officials in the now infamous “Ibiza video” Dubious machinations and agreements with foreign investors and Austrian politicians revealed.

Since then, voices have become louder that demand Novomatic’s complete withdrawal from the Austrian market. As a result, many known names have already resigned from their work, including, for example, Mr. Mag. Neumann, who worked for six years as CEO at Novomatic.

“In the name of company founder Prof. Johann Graf and the Supervisory Board of Novomatic AG, I would like to thank Mr. Mag. Neumann for his great commitment over the past six years as CEO.”Dr. Bernd Oswald, Chairman of the Supervisory Board at Novomatic, Official press release on Novomatic.com

This and the falling sales figures have now led to the Kreditrating-Agentur S& P Already last year decided to “speculatively” reduce the company’s creditworthiness. Due to the current development, the rating is to be worsened even further. For Novomatic, this development could ultimately mean serious existential negative consequences, then in 2020 Novomatic has to pay liabilities of almost half a billion $ .

And that’s not enough. In three years, a bond of exactly 500 million $ will be due, but Novomatic can only pay if the sales figures improve again as soon as possible and there is the possibility to take up further loans. Experts currently assume that the Sales figures at the end of the year in the previous year comparison could decrease by 20 percent again, the profit should even be 40 percent lower. If these forecasts come true, the management should even be willing to reduce numerous jobs and sell the Novomatic building in Vienna.