Svenska Spel details ‘good progress’ despite revenue declines across the board

Svenska Spel details ‘good progress’ despite revenue declines across the board

The third quarter of the year continued to prove difficult for Svenska Spel, as the Swedish firm  reported revenue declines across all verticals.

An update from the state-owned operator this morning showed that total net gaming revenue declined year-on-year in Q3, albeit by a marginal 1% to SEK 1.95bn (€178.2m) from SEK 1.97m (€180m).

Meanwhile, operating profits fell by 2% to SEK 681m (€62.2m) from SEK 696m (€, whilst revenues for the year so far also decreased by SEK 59m (€63.6m), or 1%, with a 3% drop in operating profit from SEK 1.86bn (€170m) to SEK 1.8bn (€164.5m).

On the other hand, the group’s operating margin for both periods remains relatively steady, standing at 35% for Q3 – the same as the previous year – and dropping from 32% to 31% for January-September.

Despite the difficulties of the year, Patrik Hofbauer, Svenska Spel CEO and President, remained positive about Svenska Spel’s prospects moving into Q4 and 2023.

“We make a good performance in challenging times,” he said. “Both our strong operating margin and our investment in new gaming experiences in all business areas are positive. 

“This goes hand in hand with a continued focus on sustainable gaming, where the share of healthy revenue during the quarter reaches the highest level ever.”

On a product basis, Svenska Spel’s Sport and Casino business area saw a revenue decline by 7% year-on-year, whilst Casino Casmpol’s income also fell by 4%.

The group noted, however, that there are difficult comparatives with the previous year, particularly with regards to casino in 2021 – which had just reopened after a lengthy period in lockdown. 

On betting, Svenska Spel stated: “The comparative numbers are still challenging as a result of strengthened gambling responsibility measures, but the measures have a positive effect on the share of healthy revenues.”

Additionally, the firm highlighted the 2022 Women’s European Football Championships  as having a beneficial impact on sports betting, suggesting potential further trajectory with the World Cup set to commence next month.

Further to this, Svenska Spel has lauded the launch of its Fullträff high-stakes game in which players bet on the number of goals across 13 football matches to win a share of a SEK 50m pot, as well as the popular Triss scratch card.

“The European Football Championship in England did not only bring success on the football field for the Swedish women’s national team,” Svenska Spel’s statement continued.

“The championship also created a great deal of engagement among sports betting customers, which resulted in a significant increase in the number of unique customers and in revenue per match. 

“There was also great interest among the lottery customers for football Triss, which was presented in collaboration with the Swedish Football Association.”

Svenska Spel’s financial update follows the appointment of Niklas Wykman as Minister of Financial Markets, who will hold responsibility for oversight of Swedish gambling and its regulation. 

His assumption of the role was welcomed by Branschföreningen för Onlinespel (BOS) – Sweden Online Gambling Trade Association — which stated that it anticipates important discussions with the new Minister.

Source: SBC News