Massive Improvement in Results at Casinos Austria International
For immediate release
Vienna, 31 August 2012
Casinos Austria International Holding (CAI), a wholly-owned subsidiary of Casinos Austria AG, has significantly improved its results for the first six months of 2012 compared to the same period in the previous year. The results were reported in the company’s half-yearly annual report, which was published today (31 August 2012). The CAI group loss for the period was reduced from -30.7 million euro in 2011 to -7.3 million euro in 2012, less than a quarter of the previous year’s figure. Chairman Karl Stoss sees the figures “as confirmation that the restructuring and reorganization measures introduced last year are having the desired effect”. The company remains firmly on course with its target of significantly reducing its loss in the period from 2011 to 2012 and returning to the black in 2013.
Despite the tense situation in many markets, especially those shaken in Europe by national debt and the financial crisis, CAI succeeded in raising its revenues by 2.3 percent to 117.3 million euro. To provide greater transparency, CAI changed its segment reporting format at the end of 2011 (from region to market segment). Its largest segment is naturally the “Casinos” segment, with revenues of 78.7 million euro (2011: 82.3 million euro). The drop of 4.4 percent in this segment can be attributed to the slump in the European markets and in particular to the casinos in Brussels (VIAGE) and Hanover (RP5). Significant increases were seen for the operations in Chile (16.9 percent). Clear growth was reported in the “Lotteries” segment (Salta, Argentina), which was up by 18.8 percent to 8.2 million euro. Revenues for the “Management Contracts” segment also grew to 4.9 million euro (+6.9 percent). Revenues for the “Entertainment, F&B, Hotel” segment fell to 6.6 million euro, with the 9.1 percent drop attributed to closures undertaken in the loss-making gastronomy and entertainment segments in Brussels (VIAGE) and Hanover (RP5). However, these and other measures did result in an almost halving of the loss for this segment – which is known to be difficult – to 2.6 million euro. This confirms the strategy that has been put in place: CAI is now concentrating on its core business – operating casinos – and external partners are being brought on board for other segments.
The measures taken in Brussels and Hanover also had a positive impact on results for the CAI group as a whole. The operating result (operating result before restructuring and impairment expenses) was improved by five million euro (-2.1 million euro compared to -7.1 million euro in 2011). Adjusted for special effects (depreciations, restructuring expenses), CAI posted an operating result for the first six months of 2012 of 6.5 million euro, almost quadrupling its results for the same period in 2011 (1.7 million euro). In other words: CAI is standing on its own two feet again from an operative perspective, has addressed its problem segments and – thanks to the reduction in its short-term obligations – can report a significantly improved financial situation.
The complete report for the first six months of 2012 is available for download (in German only) at http://issuerinfo.oekb.at/startpage.html.
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