Holland Casino has published financial data for the first half of 2024. The figures are rather gloomy, as the venture has banked losses worth €3.5 million. This roughly translates to $3.9 million and is against the €17.2 million profit in the first half of the previous year, that is 2023.
According to sources, there are a total of two reasons. These are inflation and gambling tax. As its costs rose, Holland Casino felt the heat of inflation. Despite a higher guest count, there was a decreased likelihood of recovering the same amount. Their reduced spending led to a decrease in revenue. Gambling tax increased by 1%, making it a major highlight and a contributor to the loss.
Personnel costs went up to €151.5 million from €136.5 million. The company had anticipated that profits would take a hit amid speculation of inflation. The loss incurred during the Corona era has also not yet subsided. A spokesperson for Holland Casino stated that they are still in the process of clearing their pandemic dues, adding that it only makes their financial position vulnerable.
The revenue of Holland Casino is down to €395.4 million. This is a 2.4% dip, whereas its branches reported a 0.5% fall. Turnover has declined by 14.7%, and the casino’s next target is likely to encourage guests to spend a little more on their visits.
According to the casino news, Petra de Ruiter, the Chief Executive Officer of Holland Casino, said that their tax burden is likely to be 50%, which makes black figures impossible. Petra stated that, unlike supermarkets, they find it challenging to implement price increases, and that their only remaining option is to launch an aggressive ad campaign. However, that will require people to spend more and earn lower rewards.
Ruud Bergervoet, the Chief Financial Officer of Holland Casino, talked about dues from the Corona times. Ruud stated that it was critical for them to improve the financial health of the venture while avoiding significant cost increases.
Holland Casino’s planned investments continue to be the primary source of concern. Both of the brand’s notable personalities believe that their current situation is still under stress. However, the pressure could also impact their planned investments.
It is only safe to assume that inflation affects the European market as much as it affects the American market. The second half of the year is less likely to cover losses in H1-2024. It is yet to be determined how the brand will achieve profitability and turn the tide in its favor. Some options include delaying investments if they are not necessary and focusing on having guests spend more on their visits.
Inflation and rising costs are the main causes of losses. Both are notably uncontrollable factors, and Holland Casino can only focus on its core and internal operations.
