Successful start in liberalized sports-betting markets in Austria and Italy
Espelkamp. Due to the different ownership the family-managed Gauselmann Group based in the German region of East Westphalia is subdivided into three major business units:
Europe-wide development, production and sales activities for gaming machines and cash management systems;
Europe-wide services activities (Merkur-Spielothek, Merkur Casino, real estate, rental and lease, sports-betting);
World-wide casino machines and cash management business (Atronic Group).
In FY 2006 the Gauselmann Group exceeded the corporate targets that it had set itself by far. The business volume totaled EUR 1.33 billion (2005: EUR 1.003 billion) with aggregated consolidated revenues of the three business units rising to EUR 1.001 billion (EUR 732 million in FY 2005). This corresponds to a revenue increase of 37 percent. Almost half of the revenue increase results from business acquisitions in the last two years. German domestic and foreign business contributed approximately 50 percent each to the total revenue.
?The result improved in line with the revenue increase, but it is still significantly under 10 percent before taxes. Not taken into account are special cash additions from turnover tax reimbursements after the decision of the European Court of Justice (ECJ) as of February 17, 2005 (ECJ legal case C-453/02, “Linneweber“).
?In FY 2006 the gross capex amounted to EUR 102 million (2005: EUR 110.1 million). The headcount dropped slightly in the last FY from 5,638 to 5,518. Some part time positions were converted into full time positions, therefore the FTEs show an increase from 4,563 (2005) to 4,592. At the end of FY 2006 more than 100 young people underwent apprenticeship in the Gauselmann Group.
?For many years the Gauselmann Group has been the clear leader in the field of electronic amusement with and without cash prize in Germany and has been in the top group of the major, innovative, and globally active companies in this business segment in Europe and worldwide. The Gauselmann Group is based in Espelkamp and Lübbecke (in the German federal state of North Rhine-Westphalia, district Minden-Lübbecke) and develops, manufactures, sells, finances, provides, and operates gaming at coin-operated amusement machines with and without cash prize opportunities, and in addition also offers gaming on the Internet.
New business segment: sports-betting in liberalized markets!
The start of activities in the new business segment of sports-betting was also extremely successful. Some German politicians in the federal states cling desperately to the obsolete idea of monopolies; the resulting uncertain legal situation caused the Gauselmann Group to become active in European markets, where responsible liberalization has become reality. In Austria the company holds a majority investment in CASHPOINT Sportwetten GmbH, Vienna, and some weeks ago it entered the private sports-betting market in Italy. The subsidiary Merkur Interactive obtained licenses for 76 betting offices, 157 sales points, and a license for Internet-based gaming in all of Italy. Activities in Spain (Madrid region) are being prepared against the background of the relevant legal framework conditions.
Anniversary year 2007: 50-years company anniversary
”Especially at the beginning of our anniversary year – my group of companies is celebrating its 50-years anniversary this year – the best result of the year in the history of our company is a reason to be proud, but at the same time it is also an obligation to do everything, so that also in the future the trends for the industry will be set in East Westphalia and that we will remain the innovation leaders that will provide products and services to our national and international customers that will continue to enthuse gaming patrons worldwide in the long run,“ says Paul Gauselmann, founder of the group and chairman of the management board of Gauselmann AG.