The Astra Gaming Group, a UK subsidiary of Novomatic, reported gross profits of £44m for 2013.

Zane Mersich

Total revenues for the year stood at £87m, while operating profit was £1.8m. Profit before tax for the year was £29m, up from £10m in 2012.

Trading at the group was described as “satisfactory” by the board. However, it noted that profitability has “come at a price” due to poor margins and the “restrictive nature” of the market.

Among the key factors that contributed to a testing period of trading in 2013 were closures and falling revenues from the arcade and bingo sectors. The pub segment also came under pressure during the period.

“We are pleased to be able to deliver a financial report that shows a healthy profit against a backdrop of continued tough trading and an industry business model that is at best challenging,” said group CEO Zane Mersich. “While the group is evidently in a strong position, it is vital that we remain mindful of the exigent conditions facing the industry as a whole and ensure that we constantly seek to improve all areas of our business.”

The company expects to deliver better results in 2014, he said, suggesting that as the general economy improves there will be some “clear sky.”

“Adult gaming centres and bingo halls will still have difficulty competing with the much harder gaming offerings in the licensed betting office and online sectors, with far higher stakes and prizes; however, they may begin to regain some lost ground and smart operators will look to invest in their businesses in earnest,” Mersich said. “This coming year may herald some signs of the smaller but healthier market alluded to in previous reports.”