Austrian gambling operator Novomatic Group enjoyed record sales in 2017 on the strength of its gaming operations division.

Figures released last week show Novomatic’s overall revenue hit a record €2.53b in 2017, 11% higher than 2016’s result. Earnings were flat at €586.8m but operating income fell by more than one-quarter to €209.8m and after-tax profit slumped nearly 61% to €61.4m.

The operating income decline was attributed to increased gaming taxes in Italy and betting terminal fees in Austria, exchange rate fluctuations and a host of one-offs, including preliminary work for the legally required conversion of all gaming devices in Germany this year, plus the “deterioration in the earnings position” of the Novomatic Lottery Solutions Group.

The gaming machine division reported revenue rising nearly one-fifth to €1.59b, while the gaming technology segment slipped 1% to €937m. Novomatic CEO Harald Neumann credited Spain as “a growth driver,” with sales up 50% year-on-year, while Italy, the UK and Central & Eastern European markets also performed well.