The Danish gaming operator reduced costs and saw a strong lottery performance to limit a drop in revenue.
Denmark.- The gaming operator Danske Spil managed to limit the impact of Covid-19 on profit in H1 thanks to reduced costs and a strong lottery performance.
Like-for-like profit for the first half fell by just 2.9 per cent year-on-year to DKK794.4m (€106.8m) as revenue fell 7.8 per cent to DKK2.30bn (€309.1m).
The operator’s board said the company’s mitigation of the Covid-19 impact meant it remained on track to meet its original targets for the year despite having revised predictions following Q1 results.
It expects revenue of DKK4.5bn to DKK4.7bn for the year and profit between DKK1.3bn and DKK 1.4bn.
Danske Spil said: “Overall, Danske Spil has succeeded in maintaining a satisfactory turnover at its casino and several of our other consumer facing offerings.
“Combined with a reduction in the company’s costs – not least the marketing costs – this has meant that Danske Spil is back on track in relation to its [full year] profits.”
Lottery revenue from Danske Lotteri Spil increased in the first half, up 5.2 per cent from H1 2019 to DKK1.30bn, largely thanks to several large jackpots on the Eurojackpot lottery.
That helped partly compensate for a drop in revenue from the online gaming arm, Danske Licens Spil. Its revenue fell 15.7 per cent year-on-year to DKK894.4m.
The gaming hall and slot manufacturing business, Elite Gaming, saw revenue plummet 48.1 per cent to DKK98.1m. The fantasy sports business Swush also took a heavy hit, with revenue for H1 falling 48.1 per cent to DKK2.1m.
Tax costs fell 23.9 per cent to DKK230.8m, dealer commissions fell 23.7 per cent to DKK266.8m and other direct costs fell 19.7 per cent to DKK23033.7m.
Operating profit fell just 0.3 per cent year-on-year to DKK1.67bn.
Danske Spil said: “The first half of 2020 has been challenging in every way for Danske Spil.
“Covid-19 saw sporting events across the globe cancelled and thus put a stop to most sports betting and simultaneously the lockdown of Danish society affected all of our customers as well as physical venues and arcades.”