Issue link: https://maltatoday.uberflip.com/i/1528582
maltatoday | SUNDAY • 27 OCTOBER 2024 8 COMMERCIAL IZI GROUP reports record financial results, marking a year of exceptional growth Group registered Gross Gaming Revenue in FY2024 of €86.5M an increase of 25% from the same period last year. EBITDA in FY2024 increased by 68% to €23.2M I met with Johann Schembri, the Founder & Chief Executive Officer of IZI Group at the Quad Central, a few days after the Group announced its financial results for Fiscal Year (FY) 2024. IZI Group, a leading gaming op- erator, announced record results across all its businesses , including the National Lottery, the Drago- nara Casino and iGaming. The financial results attained in FY2024 are quite remarkable. What are the key elements lead- ing to such remarkable growth? These exceptional results are the outcome of the strategy adopted by the Group over a number of years which has always been deep- ly customer-centric, with a keen focus on closely monitoring local market trends to stay attuned to evolving market needs. Given our diverse customer base, it is cru- cial for us to remain vigilant and adaptable, making changes that truly add value. Our comprehen- sive digital adoption and strong degree of innovation have always been at the heart of our Group's approach. The enhancements we've made and continue making to our product portfolio, coupled with our commitment to improv- ing product accessibility, are two of the main drivers behind the success we achieved in FY2024. What are in your view the most salient achievements of the Group in FY2024? There is no doubt that the one word that epitomizes our year in review is GROWTH. From a fi- nancial perspective the Group has managed to attain Year-On-Year (Y-O-Y) growth across all its Key Performance Indicators (KPIs). We attained a total turnover of €569 million a notable Y-O-Y increase of 23%, while ensuring a very strong return to players as player winnings reached €481 million, an increase of 24% when compared to the same period last year. Our Gross Gaming Revenue (GGR) reached record levels of €86.5 million, exceeding our own projections and the forecasts we had shared with the Capital Mar- kets, representing an increase of 25% over the previous year. This material growth in revenue was also complemented by a strong focus on cost optimisation and improved margins, leading to a record EBITDA for the year of €23.1 million, constituting a growth of 68.2% on the previous year. The Group's impressive growth must also be seen with the context of our ever-increasing and equal- ly unprecedented commitment to Responsible Gaming and the rolling out of a robust Environ- mental, Social, and Governance (ESG) Strategy, focusing predom- inantly on ethical practices, envi- ronmental sustainability, social responsibility, and transparent governance, aligning the Group's expansion with sustainable, re- sponsible operations. The Group has been operating the National Lottery of Malta for just over 2 years now, trans- forming the national lottery in the process. Can you highlight some lottery specific achieve- ments that you are mostly proud of? National Lottery plc constitutes a key subsidiary of the Group. Facts speak louder than words and the easiest way to depict the achievements of National Lot- tery plc would be to highlight the remarkable financial results, starting from a 23% increase in turnover, 34% increase in play- er winnings, and 30% increase in Gross Gaming Revenue (GGR). However, aside from the financial achievements, as the custodian of the national lottery of Mal- ta we are also very pleased with some very important non-finan- cial achievements. We are mostly proud that our efforts and com- mitment to security, integrity and responsible gaming practices have been recognised by the two (2) most important international lottery bodies, the World Lottery Association (WLA) and European Lotteries (EL), as National Lottery plc successfully achieved Respon- sible Gaming (RG) certification. Furthermore, we are pleased to announce that earlier this month, we were also awarded the pres- tigious ISO/IEC 27001:2022 cer- tification, a globally recognized standard, highlighting the com- pany's and Group's commitment to operational excellence and se- curity, amongst other. Finally, as you continue to lead this Group forward, can you highlight your aspirations for the coming years? The Group has always managed to grow over the years by adopt- ing what is essentially a strategy that focuses on the local gaming market. Over the years we have nurtured our intellectual prop- erty and gained considerable ex- perience across a very diversified portfolio of gaming operations. Within the context of the local market, we will sustain the work undertaken thus far to widen and strengthen the reach of our dis- tribution network thus making our offering more accessible in the marketplace. We are also very excited about the prospect of add- ing a pan European lottery to our current lottery product, enriching the lottery product portfolio in the process. We also have major plans for the Dragonara Casino, more specifically an expansion project through which we would be in a position to offer a more holistic and diversified casino ex- perience. The flawless transition of the Na- tional Lottery from the previous concessionaire, our extensive ex- perience operating the Dragonara Casino, our experience in cre- ating and nurturing the IZIBET brand that over a few years has become Malta's favourite sports betting brand, and very recently the launch of the first Historical Horse Racing (HHR) installation outside the USA, gives us the right set of tools to think about future international expansion. Pursuing international business development opportunities is part of our broader growth strategy. To this end, we have been actively pursuing opportunities in other European jurisdictions as well as in Latin America. Our aim is to leverage our established relation- ships in the industry to replicate the local business models on lu- crative international opportuni- ties, while being grounded in our approach of doing business. Inset: CEO Johann Schembri