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 30 September 2021 and provides an update on recent developments and current trading.
Q3 2021 was the first quarter since Q4 2019 with no material COVID impact on any of our businesses.
After the end of the quarter, governments in Europe have introduced some new restrictions in response to increasing number of COVID-19 cases and the Omicron variant. In addition, certain jurisdictions, for example Austria and Greece, have introduced mandatory vaccination.
Compared to previous periods, these restrictions have generally been more limited in scope and period, with governments aiming to avoid wide-ranging strict lockdowns.
“I am delighted to report that SAZKA Group delivered yet another strong performance in Q3. Our GGR increased by 14% year on year and our Adjusted EBITDA increased by 40% with a margin of 53%, an 8 percent point improvement year on year.
As a result, both our GGR and our EBITDA reached record levels in the quarter, significantly above pre-COVID levels.
The third quarter was the first quarter in 2021 when all our businesses operated without material COVID-19 related restrictions. Our physical retail businesses in Greece and Cyprus and casinos in Austria and internationally, which were adversely impacted by restrictions in H1, demonstrated a very rapid recovery, in line with our expectations.
I am especially pleased about a significant improvement in profitability levels in our Austrian business following the successful execution of our restructuring program, which is expected to deliver annual savings of €45 million.
While governments have introduced some new restrictions after the end of the period, these are much more limited than in previous periods and have in the case of Austria already been relaxed again. We remain optimistic about the outlook for Q4, supported by strong trading in most of our businesses and in the online channel.
We have also continued our solid progress on our strategic objectives, including rapid expansion of our online business, digitalisation of physical retail, and submission of our proposal to operate the fourth UK National Lottery concession.
After the end of the period, our parent company SAZKA Entertainment announced that it is rebranding as Allwyn, to create a unified and global brand that will support our continued international expansion. Allwyn will retain the iconic local brands that are cherished by both its consumers and employees and have been a key factor driving the strong organic growth of the Company.
Overall, I am very pleased with SAZKA Group’s continuing strong performance in Q3 2021 and I look forward with confidence and excitement to a great fourth quarter and 2022 as our strong trading momentum persists and we continue to make progress on our strategic objectives.”