Czech Republic-based gambling operator Sazka Group took a significant hit from the COVID-19 crisis in Q1 2020, with gross gaming revenue (GGR) tumbling 11% year-on-year. 

Despite the COVID-19 lockdowns, and subsequent sporting cancellations, only just affecting the first quarter, Sazka Group saw GGR fall to €405M, while net gaming margin sunk 16% to €266.8M. Operating and adjusted EBITDA fell 23%, to €125.5M and €117M respectively. 

Unsurprisingly, profit also plunged, with before tax falling 46% to €61.5M, and from continuing operations crashing 51% to €42.6M. 

Though the group’s land-based retail operations were badly hit by the crisis, its online channels performed very well, as customers switched to online play, resulting in EBITDA for digital-only games surging 78% to €7M. 

Reflecting on the quarter Sazka Group CEO, Robert Chvatal, said:

“I am extremely proud of the resilience our businesses have shown and I would like to thank the entire SAZKA Group team for their hard work and perseverance, and for seizing opportunities to progress our strategic priorities; during a period which has on a personal level been very difficult for many of us.”

The group’s retail shops in the Czech Republic, Greece, Austria, and Italy reopened in May. 

Sazka’s retail  full-year GGR for 2019 grew 6% to €1.91BN. 

AYO.NEWS says:

The COVID-19 crisis has really highlighted just how exposed several operators still are to legacy land-based retail estates, and we’re sure it will persuade many companies to speedo their transition to an online business model. However, with a second wave of infections already being reported in Asia, and the very real prospect of a return to lockdowns over the coming months, some companies may find they have left things too late. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

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