Gauselmann sees double-digit revenue increase

Gauselmann sees double-digit revenue increase

Monday, June 26, 2017 Posted by James Walker
The Gauselmann Group senior management team

Despite the challenges faced by the company’s domestic gaming market, the Gauselmann Group has reported a double-digit increase in revenues for 2016.

Cumulative sales across the German company’s businesses – which include gaming operations, manufacturing, sports betting and online gaming – totalled €2.53 billion, up 14.2% on fiscal 2015.

Adjusted for intragroup sales, sales revenues climbed by 17.8% to €1.72 billion – an increase of €260 million. Hand in hand with this, the number of employees rose in the same period by 1,198 to total 10,438 games makers worldwide.

“This growth is above all attributable to foreign sales, which have risen steadily for the past several years, whereas the share of sales of the German market is now just over 50 per cent,” the company stated.

Internationally, the Gauselmann Group was again able to grow through further acquisitions in fiscal 2016. Sales increased by 23.6% year-on-year to €673 million.

“In the ongoing business year, foreign sales will for the first time account for substantially more than 50 per cent,” the company said.

While Gauselmann ended the 2016 financial year on a positive note, the group said legal restrictions in the German street gaming market were an ongoing cause for concern.

“As a result of the Glücksspieländerungsstaatsvertrag (First Amended Interstate Gambling Treaty) and the respective state arcade laws, the situation on the German home market is difficult, although a growing number of players use and enjoy the products and services, but remain silent,” the company noted.

Paul Gauselmann, founder and chairman of Gauselmann Group, added: “All in all, the Gauselmann Group achieved a good result in 2016. What the raw numbers do not reveal, however, is that as a result of the legislation many arcades in Germany continue to be directly threatened by closure.

Totally Gaming says: While the German street gaming market continues to battle against unfavourable legislation, the Gauselmann Group continues to tap international growth across a range of sectors. With non-domestic revenues due to account for more than 50% of the group’s sales this year, the German gaming giant has underlined its position as a leading player in the global marketplace.

Latest

Playtech agrees further SSBT rollout with Betfred

Fruit machine stagnation leads to calls for Government action

EUROMAT president pleads for 'evidence based policy' in Italy

Major market reach for new EUROMAT corporate members

Gaming Products & Services Directory

The essential directory for the gaming industry