Moody’s: Europe gaming industry expected to see a growth in gaming turnover in 2016

According to the Investors Service’s announcement, the regional gaming industry could improve wagers

UK.- Moody’s Investors Service reported that the European gaming industry will see a modest growth in gaming turnover or wagers, amid stable economic conditions in the euro area.

Donatella Maso, a Moody’s Vice President – Senior Analyst explained that “companies with greater online gaming exposure are likely to experience higher growth next year, though most rated companies remain highly exposed to mature segments of the gaming industry, which we expect to remain broadly flat.” Also, the agency’s current outlook to the European industry is stable.”

For next year, the rating agency also expects a rise in disposable income, even though it could be gained at a slower pace than 2015 in some European countries. A stable economic environment has benefited Spain, Germany and The UK. But in Italy, where the economic recovery remains slow, the gaming industry performance reflected that scenario.

“We note that regulation and taxation will continue to pressure revenues, profits and profit margins in 2016, but the impact will be less pronounced than in 2015,” explained Maso. “We do not expect any new major regulatory changes next year, except in Italy where provisions of the draft 2016 Stability Law propose taxation increases that would affect revenues and profits,” she added.

Also regarding 2016 the rating agency anticipates continued cost optimisation efforts and M&A activity.