THE BIG INTERVIEW


we got involved in that sector as it is a core competency for us globally. We looked around and found an opportunity to buy the Noble Group, a superbly-run family business that gave us the skills we needed and a sound base with which to grow our AGC business. There is no doubt that Nobles was the leading AGC operator in the UK and as a result, we also secured the best people. A couple of years later we bought the Talarius business, which we could bolt on very nicely to the Luxury Leisure business – they continue to operate as Talarius and Luxury Leisure but under the NOVOMATIC UK operating umbrella, with one Managing Director responsible for both companies. We will continue to make smaller acquisitions if the time and the deal are right, there is always a move to expand.


CI: Some of your acquisitions put your


products into British pubs, a very tough market to compete in. ZM: Yes, we were in the pub sector and launched a


“…being an operator and a manufacturer means we have a great way to get the product absolutely right before making it available to customers.”


digital product for that market, iPub, which is still going strong, and we are now operating iPub2 which has set the bar even higher. It’s an area that is now about 20% digital and is a tough market to compete in, pubs are closing but that is perhaps a natural attrition in so far as there are so many other entertainment offerings and ways to spend your money. There are still around 50,000 pubs, however, so there is still opportunity. You need to have a specific strategy for your business now; some chains were wet-led groups and have added food, for example, with a focused strategy and they’re seeing growth. You’ve got to realise where you are and target your customers accordingly. You have to meet their needs. The large Pubco businesses are quoted on the LSE and are serious corporate animals and need to be dealt with professionally, they are sophisticated buyers. I think digital gaming in the pub sector may


provide the opportunity for pubs who might be looking at a wet-led offer, maybe more high-end, more inner-city and trendy, you can see a digital machine or two having more impact rather than a traditional analogue machine. But we are also innovating in analogue with LED lighting, hybrid products and reels. We have some good franchises such as Batman and Sherlock Holmes, and are developing some innovative products in both digital and analogue versions.


CI: With your domestic acquisitions you have almost Brexit-proofed the company as you have such a strong domestic underpinning. You’re not reliant on Austria, you have almost created a miniature NOVOMATIC that can survive on its own. And post-Brexit, we will likely be seeing growth again in the ‘staycation’, which will benefit your model. ZM: For us, we are massively proud to be part of


NOVOMATIC, and their support has made everything possible in the UK. There is a tremendous amount of


60 MAY 2017


investment into the UK to create all of this, and they have always been supportive and had an affinity for the UK. We want to be a successful, value-adding addition to the UK gaming space, whether it’s pubs, casinos, AGC’s… We have also bought Playnation, a massive


operator of pay-to-play equipment in motorway services, holiday parks and other leisure offerings like bowling alleys. That’s another example that, should Brexit prove more of a challenge than many expect and we do start to see people staying in the UK, we will indeed benefit because we are in holiday parks, motorway services… We operate around 20,000 coin and note-operated devices in Playnation alone, of which around 6-7,000 are gaming machines, and the rest are non-gaming like cranes, pushers, video products. It’s not just about gaming, it’s family and leisure, and that’s a nice mix for us to have. When we provide product to these customers we are not just about gaming, we have a wide spread of product, and we can address all their needs. Of course, being an operator and a manufacturer means we have a great way to get the product absolutely right before making it available to customers. You don’t do the brand any damage by testing significant numbers of machines which may not make the grade – you try those products in your own locations and then have a much greater chance of those machines being successful all the way down the line.


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