Gauselmann Group: Another revenue growth in fiscal year 2005

Revenue increase from EUR 670m to EUR 686m

Espelkamp. Despite the unfavorable economic conditions in Germany the family-managed Gauselmann group succeeded in reaching the strategically defined growth targets and even exceeded the sales level of the prior year. The group’s revenue for the fiscal year 2005 totaled EUR 686 Mio. over EUR 670m in the prior year – or a 2,5% growth. In 2005, the combined business volume of all group companies of the Gauselmann group exceeded the 1-billion mark for the first time. In the fiscal year 2004 the volume was still EUR 987m but soared to EUR 1,044m in the fiscal year 2005.

An excellent revenue growth was achieved in the international segment despite the strategic sale of the Bell-Fruit group interests in the UK. Having generated EUR 261m in the fiscal year 2004 the revenue climbed to EUR 268m in the fiscal year 2005. In the fiscal year just completed the German domestic market contributed EUR 419m to the external revenue of the Gauselmann group as compared to EUR 409m (2004). This is even the more positive against the backdrop of the long lasting discussions about the intended amendment of the gaming regulations, the legally ambiguous position of the so-called fun games, the legally and politically unanswered question of turnover tax on AWP machines, and discussions on the adequate assessment basis for amusement tax. Add to it the increasing competition of the mushrooming sports betting offices, which will have to be tolerated until the final ruling of the German Constitutional Court, which make life especially difficult for gaming arcades.

At the end of the fiscal year 2005 the headcount of the family-managed company totaled 5,625, 1,231 of them outside of Germany and almost 1,700 in the Minden-Luebbecke district.