Svenska Spel released its interim report for full 2019 and showed that the re-regulation of the local market hit its finances.
Sweden.- The Swedish gambling industry started 2019 with a full re-regulation, and finances were expected to suffer a setback because of it. Naturally, Svenska Spel has revealed that revenues were slightly down in 2019, although the company reported an overall positive year.
Svenska Spel’s customer bases, digital business and sports and casino business continue to develop positively. However, revenue for the fourth quarter, as expected, wasn’t at the level that the company seeks, mainly as a result of competition and increased efforts in gaming responsibility.
Net gaming revenue for the fourth quarter was €235 million, which is a 4% increase over the same period in 2018. Due to the new gaming tax, the operating margin of 31 per cent is considerably lower than last year, and amounted to 50%.
For the full 2019, net gaming revenue of €817.1 million represents a 2% setback, mainly because of the gaming tax that was introduced in the re-regulation of the gaming market on January 1.
“The Swedish gaming market as a whole has had negative growth in 2019. Our result for the quarter is therefore in line with expectations even though the ambition ahead is higher. The most important thing during the year has been to stabilise the business after the major transition to a new gaming market, which we have now done, which means that we are well equipped for the future. We are entering the new year with an aggressive focus going forward, but with continued concern for our customers,” says Patrik Hofbauer, President and CEO of Svenska Spel.
“In 2020, I hope that together in the industry we can agree on a definition of problem gambling and sound revenue. This is necessary to create greater transparency and a more sustainable industry. It is also an important prerequisite for being able to meet our long-term challenge – to strengthen Svenska Spel’s position as the company with the best reputation in the gaming market. We have the opportunity to regain consumer confidence, but we must do it together as an industry in order for us to succeed,” added the CEO.