SAZKA Group Q1 2021 Operational and Financial Review and Update on Current Trading
14 Jun 21
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 three months to 31 March 2021 and provides an update on recent developments and current trading.
Q1 2021 financial highlights
- Consolidated Gross gaming revenue (“GGR”) increased by 30% year-on-year to €526 million.
- Consolidated Operating EBITDA increased by 20% year-on-year to €133 million.
- Consolidated Adjusted EBITDA, which excludes certain one-off items, increased by 4% year-on-year to €144 million.
Consolidated profit after tax increased by 44% year-on-year to €35 million.
Pro-rata LTM Q1 2021 highlights
- Pro-rata LTM Adjusted EBITDA was €360 million (on a pre-IFRS 16 basis).
- Pro-rata net debt / Adjusted EBITDA was 4.0x and Pro-rata priority net debt / Adjusted EBITDA was -0.3x at 31 March 2021 (before giving effect to expected cost savings from the restructuring of the Austrian casinos).
Key strategic initiatives
- In January 2021, the Group acquired a 4.31% shareholding in CASAG, resulting in an economic interest of 59.80%.
- During the first quarter of 2021 the Group increased its direct shareholding in OPAP by 0.99% through open market purchases, as a result of which the Group’s shareholding increased to 44.11% and its economic interest to 37.08%.
- In March 2021, funds advised by Apollo completed their investment of €500 million in SAZKA Entertainment AG, the immediate parent of the Company.
- Certain COVID-19 restrictions were reintroduced in our markets in November 2020 which continued to impact our physical retail network in Greece and our casinos in Austria and internationally in Q1.
- The vast majority of the physical retail POS of our businesses in the Czech Republic, Austria and Italy have remained open and continue to sell our products. Therefore, the measures have once again not had a material impact on our sales through the physical retail channel in Austria, the Czech Republic and Italy.
- Online sales, which increased significantly during 2020, have continued to grow strongly.
- Our physical retail business in Greece and Cyprus as well as our casinos were largely shut as a result of restrictions in Q1. However, they have all reopened since the end of Q1.