Annual report 2018: HOLLAND CASINO BOOKS SOLID RESULT IN 2018 DESPITE SUBSTANTIAL INVESTMENTS
• Increased investments in building, renovation, range of games and innovation
• Gross revenue op 2.7% at Euro 656.5 million
• Result before corporate income tax declined to Euro 82.7 million, from Euro 98.0 million in 2017 (2017 included one-off income of Euro 19.9 million as a result of one-off insurance payment related to Groningen fire.)
• Gaming tax Euro 6.7 million higher due to higher tax rate
• International interest in the experience zone developed in-house by Holland Casino
Holland Casino’s main results in 2018 include a solid financial result, the opening of two new casinos (Amsterdam and Groningen), the modernisation of existing locations (including Valkenburg) and the launch of the first, innovative Experience Zone (Utrecht) for new generations of guests. In addition to these results, the annual report we published today also provides more information on the HC2020 strategy for the future.
Erwin van Lambaart, CEO Holland Casino: “We can look back at 2018 with satisfaction. Despite an unprecedented long, warm summer, we still managed to record a solid financial result, with higher gross revenues than in 2017. In a highly competitive leisure and entertainment market, we stabilised our market share and made considerable progress in the renewal of our company. Last year was the year in which we literally saw the realisation of Holland Casino’s ambitions. In the fourth quarter in particular, we saw a structural increase in the number of new guests at our 14 casinos. We are on track with the execution of our HC2020 strategy, aimed at making Holland Casino the best casino operator in Europe. The preparations for our digital proposition are progressing as planned, which means we will be ready when the online gaming market opens. And of course in all of this we continue to focus on our role in society: the safety and reliability of the gaming we offer guests, which is also clear from the slight increase in the number of prevention interviews we conducted in the context of our Responsible Gaming Policy.”
In 2018, gross revenue came in 2.7% higher at EUR 656.5 million. The result before corporate income tax declined to EUR 82.7 million, from EUR 98.0 million in 2017, largely due to a one-off item of EUR 19.9 million in 2017 in connection with the insurance payment related to the fire in our Groningen casino, plus higher gaming tax in 2018. Last year, the gaming tax rate increased to 30.1%, from 29.0% the previous year. As a result, Holland Casino paid EUR 6.7 million more in gaming tax in 2018.
The number of visitors and visits declined slightly in 2018, largely due to the fact that we were unable to open the premium pop-up casino in Groningen until December. In 2018, more than 1.1 million unique guests made 5.7 million visits to our casinos, compared with 5.8 million visits in 2017. The average visit frequency remained the same in 2018, at 5.2 visits per year. The average spend per visit increased by 4.6% to EUR 114 in 2018, from EUR 109 in 2017.
Over the past year, Holland Casino carried out a number of large-scale building and renovation projects valued at EUR 22.5 million. These included our projects in Amsterdam West-Sloterdijk and Groningen. The company also realised a large-scale modernisation of Holland Casino Valkenburg.
It is clear from ground-breaking for the new casino in Venlo that Holland Casino continues to build the most modern and sustainable casinos. The foundations have been laid for the new casino in Utrecht and the definitive preparations for construction are now virtually complete. Holland Casino expects both casinos to open their doors in the winter of 2020/2021.
In 2018, Holland Casino also made a major effort to renew its range of gaming options and ensure they remain attractive to our guests. For instance, the company invested in the very best new slot machines (EUR 17.9 million) and in regular replacements (EUR 12.9 million). The launch of the Experience Zone in Utrecht gives Holland Casino a unique and successful concept that introduces new guests and novice players to the games in way that is both low-threshold and responsible. Holland Casino will roll out this concept at least two more casinos in 2019, including Scheveningen. The concept has also attracted international attention.
Holland Casino also continues to make serious investments in the development of its employees, including a personal training budget, an in-house career centre in the context of sustainable employability and various management development programmes for (top) talents.
Holland Casino maintained the upward trend of previous years in 2017. The company once again booked a solid result on the back of a clear focus on renewal and quality in the company’s core activities: gaming and hospitality. Holland Casino recorded a strong rise in pre-tax profit, which came in at EUR 98.0 million. This was partly due to a one-off insurance payment. For Holland Casino, the year 2017 was characterised by renewal and investments, among other things in renovations, slot machines and Food & Beverage. Strengthening the connection with employees was also high on the agenda last year.
Holland Casino’s gross income was up 5.2 percent at EUR 639.2 million. The increase in pre-tax profit to EUR 98.0 million was primarily due to higher income, as well as a one-off item (EUR 19.9 million) from the insurance payment related to the fire at Holland Casino Groningen. The underlying profit is sound and continues to show an upward trend. For more news, read our annual report below.
Annual report 2017 in English:
Holland Casino recorded a solid result in 2016. Net profit was up by 4.7% at EUR 74.1 million in 2016, compared with EUR 70.8 million in 2015*.
Pre-tax profit came in at EUR 81.7 million, compared with EUR 70.8 million in 2015 (+15.4%). In 2016, Holland Casino welcomed more than 1.1 million unique visitors, which was 1% more than in 2015. Together they made 5.9 million visits to our casinos (+1.7%). And the average spend per guest amounted to EUR 103.0, which was 4% higher than in 2015.
Holland Casino CEO Erwin van Lambaart: “A solid result in 2016, but no reason for us to rest on our laurels. Substantial changes in the gaming market mean we have to be well prepared for the challenges we will face in the future. The annual results show that this is exactly what we are doing. But the future is about more than our financial position. Our annual report also shows that, above all, our people delivered a strong performance in terms of welcoming and responsible hospitality. By continuing to focus on reliability, plus safe and responsible gaming combined with product innovation, data analytics and cross-media marketing, our goal is to continue to set the standard for the casino gaming market in the Netherlands.”
The complete 2016 annual report in English can be read here.
Holland Casino had an excellent year in 2015. A year in which we continued to strengthen our financial foundations. The positive effects of the strategic changes we initiated in 2013 became even clearer in 2015. Profit increased to EUR 67 million in 2015, from EUR 12 million in 2014. Revenue came in 10.6% higher at EUR 576 million. In 2015, our casinos welcomed 5.8 million guests, an increase of 6.7% compared with 2014.
Both Table games (+ 9.1%) and Slot machines (+ 13.7%) recorded strong revenue growth. And both traditional and more innovative games performed well. Personal attention for our guests, the power of entrepreneurship and an efficient organisational structure not only helped us to record improved financial results; guest satisfaction also improved to 7.8 and absenteeism fell to a historic low of 3.8%.
You can read the complete 2015 annual report here: