SAZKA Group FY20 Results and Update on Current Trading
30 May 2021
SAZKA Group a.s. (“SAZKA Group” or the “Company”, and, together with its subsidiaries, joint ventures and associates, the “Group” or “we”) announces its financial results for the twelve months to 31 December 2020 and provides an update on recent developments and current trading.
FY 2020 financial highlights
- Consolidated Gross gaming revenue (“GGR”) increased by 6% year-on-year to €2,018 million. Excluding CASAG and Stoiximan, GGR decreased by 26% year-on-year due to the impact of COVID-19 in the second and fourth quarter.
- Consolidated Operating EBITDA decreased by 22% year-on-year to €459 million. Excluding CASAG and Stoiximan, Operating EBITDA decreased by 38% year-on-year.
- Consolidated Adjusted EBITDA, which excludes certain one-off items, decreased by 11% year-on-year to €538 million.
- Consolidated profit after tax from continuing operations decreased by 28% year-on-year to €224 million.
Q4 2020 financial highlights
- Consolidated gross gaming revenue increased by 12% year-on-year to €597 million.
- Consolidated Operating EBITDA decreased by 41% year-on-year to €96 million.
- Consolidated profit after tax increased by 42% year-on-year to €134 million.
Pro-rata LTM Q4 2020 highlights3
- Pro-rata LTM Adjusted EBITDA was €358 million.
- Pro-rata net debt / Adjusted EBITDA was 3.9x and Pro-rata priority net debt / Adjusted EBITDA was -0.2x at 31 December 2020 (before giving effect to expected cost savings from the restructuring of the Austrian casinos).
Key strategic initiatives
- In March, SAZKA Group signed a SHA with OBAG (an entity through which the Austrian government holds interests in certain strategically important Austrian government) and the second largest shareholder of CASAG.
- In June, SAZKA Group acquired a 17.19% stake in CASAG taking the shareholding to 55.48%. CASAG has been fully consolidated as a subsidiary from 26 June.
- In July, the Supervisory Board of CASAG approved a plan to optimise the cost structure of the casino business in Austria. This plan is underway and expected to achieve c.€45 million of annual cost savings by FY22.
- In July and November, OPAP acquired additional interests in Stoiximan, the leading online gaming business in Greece. OPAP now holds an 84.49% interest in Stoiximan. OPAP retains a 36.75% stake in Stoiximan’s operations outside of Greece and Cyprus (Betano).
- In November, we announced a €500 million investment by funds managed by Apollo Global Management, Inc., one of the world’s leading investors in gaming, in SAZKA Entertainment AG A.G., a newly created holding company of the Company.
- In 2020 SAZKA Group increased its stake in OPAP from 40.01% to 43.12% (31.99% to 36.10% economic interest), including as a result of open market purchases and taking OPAP’s dividend as scrip.
- Certain COVID-19 restrictions were reintroduced in our markets in November which impacted our physical retail network in Greece and our casinos in Austria and internationally.
- The measures have once again not had a material impact on our sales through the physical retail channel in the Czech Republic and Austria, and these businesses have been trading well.
- Online sales, which increased significantly during the first period most impacted by COVID, have continued to grow.
- The second wave of COVID restrictions has continued into 2021, having some impact on our businesses.
- The vast majority of the physical retail POS of our businesses in the Czech Republic, Austria and Italy remain open and continue to sell our products.
- The majority of the POS in these locations are located in shops and other outlets which provide essential products and services which therefore remain open. These include convenience stores, supermarkets and petrol stations.
- Our physical retail business in Greece and Cyprus as well as our casinos have been more affected by the current lockdown. However, more recently, our agents’ stores in Greece (not VLT or gaming halls) and two casinos in Austria have reopened.
1 “Excluding CASAG and Stoiximan” refers to consolidated numbers without CASAG and Stoiximan’s contribution in either period. 2 Operating EBITDA, together with Adjusted EBITDA and Free cash flow are non-IFRS performance measures. Please see “Alternative performance measures (“APMs”)” at the end of this document. 3 Pro-rata LTM data presented excluding the impact of IFRS 16.