Finnish monopoly operator posts revenue decline

The company said that it is aiming to strengthen its competitiveness amid a changing operating environment.

Finland.- Veikkaus, the gambling monopoly operator from Finland, has reported its third quarter financial results, which show that revenue decreased during the three month period. The company said that it is aiming at strengthening its competitiveness in the middle of a changing operating environment.

The company revealed that turnover during the June-September period was €2.36 billion, which represents a 2.4% decrease, while the financial result was €725 million, a virtually flat number. Of the turnover, 57.7% came from the points of sale and 42.3% came from digital channels.

Veikkaus revised its strategy to maintain its ability to channel gaming in the middle of international competition. The company also said that €90 million jackpots boosted Eurojackpot’s turnover for the start of the year (€222.8 million) to reach a growth of 33.4%.

President and CEO Olli Sarekoski said: “Gaming is undergoing a strong shift towards the digital channels. Although Veikkaus holds the exclusive right to operate gambling games in Finland, the gambling provision in the digital channels takes place in a competitive market in practice. The Finnish gambling market totalled an estimated €1.4 billion in terms of GGR in the period between January and September. Veikkaus’ share of the total market was 89%. The development of the regulatory environment, among other things, has led part of the gaming to take place with foreign operators.”

Moreover, the CEO said that Veikkaus’ strategy for 2019-2021 will be based on a competitive monopoly status, as the goal is to build the operator into one that also succeeds in international competition. “Success in competition and securing our channelling capacity enable us, for their part, to maintain our exclusive right. We want to be able to offer games responsibly even in the future, minimizing the detriments of gaming and continuing to ensure that the gaming revenue is channelled to the benefit of all of us Finns,” added Sarekoski.

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