Novomatic: 2Nd Place in the Brand Ranking

Brand value: 2.968 billion euros

Due to the corona crisis and the investigations by the Ibiza-U Committee, Novomatic AG is looking back on a difficult year in 2020 - the company is currently undergoing a realignment. However, the group can now record enormous success, because as part of the 18th EBI brand value study, Novomatic was once again positioned in second place among the most valuable Austrian companies. Management speaks of an excellent placement.

Novomatic takes a place directly between the undisputed winner Red Bull and the Swarovski brand, famous for crystal glass and gemstones. The globally networked technology group Novomatic struggled with losses in sales in 2020, and there were also layoffs. According to management, the company was able to score points through sustainable increases in efficiency and numerous innovations.

The receipt of a German betting license for the subsidiary Admiral Sportwetten as well as growth spurts in the area of online gambling provided further impetus. In addition, Novomatic was honored as Casino Supplier of the Year for the third time in a row at the last ICE Totally Gaming in London. As a full-service provider for gambling, the management concludes that they are still well prepared.

"It fills us with pride that we were able to maintain second place in this renowned ranking despite the corona pandemic. Because with around 21,000 employees and activities in around 90 countries, a strong and uniform brand presence is essential for our international corporate success."- Johannes Gratzl, Board Member, Novomatic, Press release

The EBI ranking was based on a trend evaluation of the 500 top companies in Austria with the highest sales. The prerequisite for EBI placement is that more than 45 percent of a company is owned by Austrians. In addition, the international standards ISO 10668 and ISO 20671 must be met. With these aspects in mind, 180 Austrian brand companies in 16 industry segments were analyzed.

Phase of restructuring at Novomatic

The corona crisis and the associated lockdowns took a heavy toll on Novomatic in 2020: Because the land-based business was at a standstill for a long period of time, losses among international customers were, according to the company, around 80 percent. The break-ins caused short-time work and there were 120 layoffs in Gumpoldskirchen, the group's headquarters. Merely those belonging to Novomatic Novoline online casinos as well as the online branches of the Lion Play Casinos were able to bring the company stable income during the pandemic.

In order to overcome the difficulties, Novomatic has now initiated a realignment. The Global Operations department is currently being restructured. The new head and vice president of the department is now the experienced Novomatic manager Thomas Komnacky. His main task is to improve the company's global business processes. Komnacky previously worked in market analysis and strategy development.

This area includes around 1,900 international gaming venues and casinos. It also involves the rental of gaming equipment in over 90 countries. Komnacky reports directly to the board in his work. Above all, this wants to ensure the sustainable development of the company and reduce Corona-related damage.

In 1980, Novomatic AG was founded by sole shareholder Johann Graf. The company, which also includes the renowned brands Greentube and Admiral, has locations in 45 countries and supplies gaming technologies, including slot machines and lottery system solutions, to around 90 countries. However, the global brand is active in all segments of the gaming industry – including online gaming. Novomatic also operates over 1,900 electronic casinos worldwide. The group also rents out around 214,000 gaming and video lottery terminals.

Ibiza U Committee puts pressure on the company

Because of the so-called Ibiza affair, there are still a number of witness interviews in the Novomatic environment. This is about dubious entanglements between politics and business: The question is whether Novomatic tried to influence Austria's gambling law through bribes. The investigation was triggered by the controversial Ibiza video, in which ex-Vice Chancellor Heinz-Christian Strache spoke of illegal party donations in Ibiza in 2017.

In February, Finance Minister Gernot Blümel (ÖVP), among others, had to appear before the committee, which sharply rejected all allegations: Novomatic had neither made illegal donations to associations close to the ÖVP nor to the ÖVP itself. Illegal sponsorship should also be ruled out. The politician said he wanted to counter such slander. Meanwhile, Blümel is deeply involved in the affair. There were even house searches. The investigation is ongoing.

Novomatic: 2nd place in the brand ranking