Italian gaming operator SNAI has reported a 4 per cent drop in total revenues to €253.0m for the first half of 2013, despite posting strong growth from the company’s retail and online sports betting offering.
Sports betting wagers fell by 9 per cent to €570.3m compared to the same period last year, of which €75.8m was generated from SNAI’s online channel, up 23 per cent year-on-year.
Net revenues from sports betting increased by 22 per cent to €79.6mfor the six month period, following a reduction in payouts to 77.2 per cent, down from 82.4 per cent a year ago.
Total wagers from horse race betting fell 14 per cent to €244.9m as a result of the continuing economic crisis which has affected the whole Italian horse racing sector, with revenues down 18 per cent year-on-year to €15.5m.
Gaming machines recorded a 7 per cent rise in amounts wagered to €1,457.2m, generating revenues of €128.7m following growth in the company’s video lottery terminal (VLT) business. This was offset however by a decline from SNAI’s AWP gaming machines which were impacted by the loss of an important client in March as well as a rise in tax.
Online gaming contributed a further €13.3m in revenues, up 17 per cent compared to the same period last year, due mainly to the introduction of new online casino and slot games.
H1 2013 Results
| Euros (€) | H1 2012 | H1 2013 | |
| Revenues from Sales and Services | 263.0m | 252.3m | |
| Other Revenues and Proceeds | 0.8m | 0.7m | |
| Raw Materials and Consumables Used | 0.7m | 0.9m | |
| Costs for Services and Use of Third Party Assets | 196.2m | 169.5m | |
| Personnel Expenses | 18.0m | 19.1m | |
| Other Operating Expenses | 15.1m | 19.7m | |
| EBITDA | 34.3m | 44.2m | |
| EBIT | 1.3m | 18.1 | |
| Profit/(Loss) for Period | (11.0m) | (4.3m) | |
| Earnings/(Loss) Per Share | (0.04) | (0.09) |
Cost for services and the use of third party assets fell by 14 per cent to 4169.5m, while personnel costs increased by 7 per cent to €19.1m. Other operating costs rose 31 per cent to €19.7m.
SNAI saw EBITDA climb 29 per cent to €44.2m although after amortization and depreciation charges of 425.9m and interest paid of €19.3m, the company generated a loss for the period of €4.3m compared to a loss of €11.0m last year.
As at June 30th the company held cash and cash equivalents of €30.2m compared to €38.2m a year ago.
Shares in SNAI S.p.A (Co. Data) (MIL:SNA) are currently trading down 2.96 per cent at €0.8045 per share in Milan following the announcement Wednesday.