Partouche Group’s recovery hit by increased taxes in France
The Partouche Group’s revival has been hindered by elevated taxes in France – iGB
The Partouche Group’s third-quarter earnings surpassed pre-pandemic levels, but higher tax collection in France has impacted its comeback.
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The Partouche Group’s recovery has been affected by increased taxes in France
The gaming conglomerate, which owns 41 casinos and employs nearly 3,900 individuals, stated that its total gross gaming revenue (GGR) for the three months ending July 31 increased by 10.8% year-over-year to €167.9 million. This figure is also slightly higher than the third quarter of 2019, the last year before the pandemic.
However, due to changes in the way taxes are calculated in France, taxes increased by 75.3% to €92.8 million, meaning the group’s net gaming revenue decreased by 23.8% to €75 million.
Total consolidated revenue was €100.9 million, down 11.6% compared to the third quarter of 2021 and slightly lower than the €104.9 million in the third quarter of 2019. The Partouche Group stated that its turnover was down €28.1 million compared to 2021 due to some business developments, including the loss of over €26 million due to the cessation of online gaming and betting operations in Belgium and the management of the Ostend casino.
Of the total consolidated revenue, casinos accounted for €87.8 million, down from both 2021 and 2019. The hotel sector saw a significant increase to €8.3 million, compared to just €2.6 million in 2021 and €3 million in 2019.
In France, GGR reached €152.9 million, up 36%.
In contrast to the prior timeframe, expansion was 2%, with slot machines and classic games expanding by 29.8% and 67.3% respectively. Electronic gaming GGR also exhibited the same growth pattern, rising by 36.1%.
In Switzerland and Belgium, GGR increased by 35.2% compared to the same period last year. This was fueled by the expansion of online gaming in Switzerland, with its GGR reaching €2.9 million, compared to €1.6 million in the third quarter of 2021.
In June, Groupe Partouche reported a 490.4% year-over-year increase in earnings for the second quarter of its 2021-22 fiscal year, driven by the reopening of its casinos.
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