Sisal Annual Report 2011 - Permira

Segment analysisLotteriesAs stated above, the lottery segment recorded an overall growth rate of 4.9%.National co-totalisator number games (known as NTNG games: SuperEnalotto, Vinciper lon-ne is the sole concessionaire, recorded a CAGR of 5.4% with total receipts inla vita - Win for Life and Si Vince Tutto SuperEnalotto), of which the Sisal GroupS.p.A.2011, 23.5% higher than in 2007 and indicative of the growth of this segmentachieved over the years by the Group’s management. GNTN recorded a positiveperformance even net of uncontrollable external variables, such as the extremelyhigh jackpots in 2009 and 2010 which led to record receipts.The 2011 Lotto gaming includes traditional Lotto and the new 10eLOTTO. TheCAGR during the period from 2007 to 2011 was 2.5% and, especially thanks tothe contribution made by the new game, Lotto started to grow again in 2011(+30%) after several years of decline; the instant lotteries (the so-called Scratchand Win) helped the lottery segment to take second place in terms of the totalreceipts in the gaming market (third, if we consider the new video lotteries separatelyfrom the other gaming machines) with a CAGR of more than 6% during theperiod from 2007 to 2011.6.4%9,2749,435 9,36710,230112.5%7,9516,7956,1505,8525,6335,2315.4%3,7773,524CAGR2007/20112,5091,9402,396(Figures in million of Euro)200720082009 2010Lotto201120072008 2009 2010Scratchcard201120072008 2009 2010 2011National TotalisatorNumbers GamesBettingThe betting sector showed essentially negative values for each of the segmentsanalyzed, with the exception of Sports Betting. The horse racing segment and thetraditional Totocalcio segment (referred to here as pool games) have undergone acrisis which started several years ago, while in the case of sports betting, the reasonsfor the trend over the last years are, to a greater extent, linked to the structureof the product itself.In fact, sports betting volumes are materially influenced by the payout and in 2009and 2010, thanks to payout percentages around 90%, betting receipts were noticeablyhigher, while the payout value was 77% in 2011 and even lower in 2007(76%) and 2008 (75.8%).15 DIRECTORS’ REPORT ON operations