Revenues up for Casinos Austria and Austrian Lotteries in 2013 Revenue increase driven by online gaming and video lottery terminals.

Transcription

1 Revenues up for Casinos Austria and Austrian Lotteries in 2013 Revenue increase driven by online gaming and video lottery terminals was without doubt an eventful year for the Casinos Austria and Austrian Lotteries group. The ongoing economic crisis continues to restrict growth in the gaming sector worldwide. It is therefore all the more gratifying that the Casinos Austria and Austrian Lotteries Group was once again able to very successfully hold its ground. Indeed, provisional figures for 2013 indicate that the group will follow its record results in 2012 with a further rise in sales of just under one percent to almost 3.57 billion euros. This success was driven primarily by a 3.2 percent increase in sales at Austrian Lotteries, generated in turn above all by the growth achieved at the online subsidiary win2day.at (+5 percent to 1.2 billion euros) and in the WINWIN video lottery terminals outlets (+20 percent to 551 million euros). Final sales figures for 2013 for the group s domestic and international casino operations are not yet available. However, current indications suggest that these will lie just under the levels achieved in A positive development was seen at the group s 12 casinos in Austria, which welcomed more than 2.36 million guests throughout the year. This represents an increase of 1.7 percent year-on-year and brings domestic casino visitor numbers to their highest level since Given the complexity and the number of different countries and currencies involved in the production of its consolidated results, no figures are as yet available for Casinos Austria International for the 2013 business year. However, it is already clear that the Casinos Austria subsidiary, which was badly shaken above all in 2011, has succeeded in massively improving its operating results in Thanks to the successful restructuring and reorganization measures that were introduced, Spielbanken Niedersachsen in Germany has returned to profitability, and Viage in Brussels is also well on the way to a return to the black. The withdrawal of the licenses in Argentina was a serious blow for CAI. However, when initial legal appeals failed to reverse the decision, CAI initiated immediate legal proceedings to recover losses. The actual extent of any such loss has yet to be finally determined. CAI will continue its efforts to negotiate with the Argentinian authorities to bring the matter to a satisfactory conclusion. Final sales figures and results for 2013 for the Casinos Austria and Austrian Lotteries Group will be published in early April. Further information on Casinos Austria, Austrian Lotteries and Casinos Austria International can be found on the following websites:

2 Casinos Austria: Visitor Numbers Up and Plenty of Highlights in 2013 Five Mega Million Jackpot millionaires, a successful new product launch and some never before seen chances to win. Casinos Austria had already declared 2013 to be a Lucky Year long in advance and did its utmost to ensure this would prove to be true for as many guests as possible. An extra one million euros in prizes and a never before seen number of special promotions, draws and events guaranteed plenty of happy faces across the country throughout the entire year. A nationwide charity promotion also ensured that help was provided to people in need. The public clearly appreciated this approach and flocked in large numbers to Austria s casinos in A total of 2,362,720 guests visited the 12 Austrian casinos throughout the year, an increase of almost 1.7 percent compared to An additional 170,000 euros for charity organizations To ensure help was also provided to weaker members of society, each month in 2013 a different casino selected a good cause and put a great deal of personal effort and commitment into organizing a special event. The proceeds of these events were donated to various charitable organizations, including the Austrian Mountain Rescue Service, the Wiener Hilfswerk (a public aid organization in Vienna), a daycare center and the Pink Ribbon Initiative. A total of 92,000 euros was raised at these events in the 12 Austrian casinos. When added to the money raised for charity with the Casinos Austria Casino on Tour a mobile casino where bets are placed for a good cause using chips with no cash value a total of 170,000 euros was raised for charity in the Lucky Year This figure does not, of course, include the company s extensive sponsoring activities. A cruise, an A-Class Mercedes or Lotto for a year: the special promotions in 2013 Luck was definitely in the air in 2013 for the 2.36 million casino guests: 12 ladies each won a 7-night luxury cruise at the monthly Ladies Night events. A further 10 guests drove off as proud owners of a new A-Class Mercedes Benz. Some casino visitors might now even be lottery millionaires they won the chance to play the national lottery free for a whole year! And one lucky winner will be receiving a vacation allowance for life. Mega Million Jackpot hit five times The highly popular Mega Million Jackpot was hit five times in Lady Luck was particularly generous in Vienna, where a total of three lucky players hit the jackpot in the course of the year. The two other jackpots were hit in Bregenz and in Linz. Casinos Austria s biggest slot jackpot links all 12 casinos across the country and always contains at least a million euros. So anyone who visits one of the 12 Austrian casinos could go home a millionaire. Since the launch of this popular progressive in 2009, this

3 dream has become a glittering reality for 28 lucky winners, who together won a total of almost 30 million euros. Blackjack X-change in all casinos since June Alongside Roulette, Blackjack remains the quintessence of exciting casino gaming entertainment. Since June 2013, a thrilling addition to this ever-popular card game has been available at all 12 casinos in Austria. Culinary delights and charming event venues Casinos Austria s operations have long enjoyed a great reputation for more than just their excellent gaming facilities. They are highly valued as top dining venues and also host over 2,000 different events each year, making them very popular meeting places. People frequently go to a casino in Austria not just to gamble, but also to enjoy a gourmet meal. Each of the country s 12 casinos offers a range of superb dining options, with catering services in 6 of these casinos provided by the company s own CAGAST (Casinos Austria Gastronomie Betriebs GmbH) subsidiary. New licenses obtained further call for tenders ongoing A clear highlight of the 2013 business year was without doubt the award of the six casino licenses in the so-called Austrian regional package to Casinos Austria. With the company also having been awarded the licenses for the six casinos in the so-called city package the previous year, Casinos Austria s domestic structure for the coming years is now essentially determined: 11 of the existing 12 casinos have firm legal foundations in place until either 2027 or 2030, and a new venue is due to open in Zell am See on 1 June Casinos Austria also submitted bids for three new additional individual casino licenses in Vienna and Austria. The final decision on the award of these licenses is still to be announced.

4 Austrian Lotteries sales exceed 3 billion euros for the first time 2013 brought 46 new millionaires and the second highest win in Austrian lottery history. Total sales at Austrian Lotteries in 2013 exceeded the 3 billion euro mark for the first time ever. A 3.2 percent increase to an estimated 3.05 billion euros mark the most successful year in the company s history. This success can be attributed primarily to the continued popularity of the online gaming platform win2day.at, which raised its sales for the year by more than 5 percent to an estimated 1.2 billion euros, as well as the success of the 13 WINWIN video lottery terminals outlets, which generated sales of 551 million euros an increase of around 20 percent year-on-year. 46 new Lotto millionaires On the winners front, there were on average five big wins per week, with 259 Austrian Lotteries customers (8 more than in the previous year) winning prizes of 100,000 euros or more throughout the year. 46 of these lucky winners collected payouts in excess of 1 million euros. In June, the national lottery Lotto 6 aus 45 produced the second-highest win in its history, when a player from Vienna was the only one to pick all six correct numbers and collected a quintuple rollover jackpot of more than 9.2 million euros. Lotto sales lay at around 573 million euros in 2013, a drop of 6 percent compared to the previous year. This was due to the reduced jackpot frequency in 2013: while there was one more triple rollover jackpot than there had been in the previous year, there were also two fewer quadruple rollovers than in The draw with the most six correct numbers was in December, when four players picked all six numbers correctly and won more than 482,000 euros. The most frequently drawn number in 2013 was the number 11, which was drawn a total of 22 times in the 104 lottery draws throughout the year. The least drawn number was 29, which only rolled out of the drum a total of 5 times. Toto relaunch and 100 years of Klassenlotterie The Toto football pool experienced the biggest relaunch in its 65-year history in September New features include the option to choose fixtures, the increase in frequency to two rounds per week (and simultaneous discontinuation of the Extra Toto product), the new 13-tip game format as well as the increase in the number of winning tiers and thus also rise in win frequency. The changes have proved very popular with punters, as can be seen in the 17.6 percent rise in annual sales to 10 million euros. While Toto kicked off into a new era, the Klassenlotterie (class lottery) reached a memorable milestone: Austria s second-oldest lottery game (after the Zahlenlotto 1-90 numbers lottery) celebrated its 100th anniversary. At a celebratory centenary event, the relevance of the game which has survived no less than five currency reforms and four

5 different currencies for the Austrian Lotteries product portfolio was acknowledged. To mark the occasion, an extra five million euros in prize money were drawn throughout the run of the 176th class lottery. Distribution network extended Austrian Lotteries carried out improvements to its distribution network in 2013: at around 1,600 existing points of sale for the Brieflos and Rubbellos instant lottery products, the previous mini-terminals, which had reached the end of their lifecycle, were replaced by new micro-terminals. This allows these points of sale to also offer betting slip based products, raises the service quality and addresses customer demands for more sales outlets. The Austrian Lotteries distribution network now has around 5,200 sales outlets. Austrian Lotteries also extended its top position in the responsible gaming sector when win2day.at became the first online gaming provider worldwide to install an intelligent electronic player protection tool on its site. The new MENTOR tool records all transactions, identifies trends and provides players with personalized feedback on their gambling habits. Lotto ticket as entrance ticket With its many and extremely varied sponsoring projects, Austrian Lotteries demonstrated once again in 2013 that the company takes its responsibility to society with the utmost seriousness. Of particular note in 2013 was the first-ever Österreichische Inklusionstag ( Austrian Inclusion Day ), which was brought into being on the initiative of Austrian Lotteries. Through a series of workshops and a podium discussion, the event raised awareness for the delicate topic of Equality for all regardless of origin, age or disability. A total of 11 Lottery Days were also held once again throughout the year: on Lottery Days, Austrian Lotteries customers enjoy free entry to a range of museums, theaters, concerts and zoos upon presentation of a lottery ticket or other lottery product. Lotto 6 nga 39 in Albania Last, but by no means least, just six months after Austrian Lotteries had been awarded the license to set up a national lottery in Albania, its Albanian subsidiary Lotaria Kombetare (Albanian for National Lottery ) began sales of the Loto 6 nga 39 national lottery on 8 April The first draw was held on Sunday 21 April 2013 at hours and was broadcast live on Albanian television. In September, Lotaria Kombetare also launched two scratch card games Super Cash and Arka e thesarit.

6 Casinos Austria International: Marked Improvement Restructuring taking effect, turnaround initiated, operating result increased. Casinos Austria International (CAI), the wholly-owned subsidiary of Casinos Austria AG which handles its international casino activities, can look back on an encouraging year in Thanks to their extensive efforts, the management team has succeeded in moving the company s far-reaching restructuring and reorganization process a major step forward. The turnaround has now essentially been achieved, and while turnover remained at approximately the same level as in 2012, CAI is expected to post a marked improvement in its operating result for the 2013 business year. Final figures for the year are not yet available. The restructuring activities at Spielbanken Niedersachsen (SNG) in Germany have been concluded, with SNG s operations which include the flagship RP5 casino in the heart of Hanover now posting initial signs of profitability. Likewise, the expansive Viage entertainment casino in Brussels is now also well on the way to a return to the black. In another positive development, Casino Sopron in Hungary was relocated to new, larger premises in November 2013 to accommodate the significant increase in demand following the Hungarian government s 2012 ban on slot machines outside licensed casinos. Strengthened by these and other successful restructuring measures, Casinos Austria International has recently also began to look once again at new projects. However, as the management team confirms, their focus is now on projects that do not require a major investment. Our core strength lies in casino management, not in the construction of casino buildings or restaurants, explains CEO Alexander Tucek. This clear position has already produced a number of positive alliances. CAI is currently looking at around a dozen new casino and VLT projects, including some very concrete undertakings, e.g. in Vietnam with options for casino and lottery activities, Canada where a number of casino projects are up for privatization, and Macedonia, where CAI recently won the international VLT and online gaming tender. CAI will realize this project in cooperation with the Macedonian state lottery company. By contrast, the withdrawal of the licenses in Argentina was a serious blow. However, when initial legal appeals failed to reverse the decision, CAI initiated immediate legal proceedings to recover losses. The actual extent of any such loss has yet to be finally determined. CAI will continue its efforts to negotiate with the Argentinian authorities to bring the matter to a satisfactory conclusion. More information on Casinos Austria International s operations around the globe can be found on the company s website at

7 Vienna, For further information please contact: Martin Himmelbauer Head of Corporate Communications Casinos Austria AG and Österreichische Lotterien GmbH Tel.: +43/1/ Homepage: