Svenska Spel profit and revenue fall amid casino closures
The Swedish operator has reported growth only in its Tur lottery operations.
Sweden.- Svenska Spel has reported Q1 net gaming revenue of SEK1.96bn, down 1 per cent from SEK1.98bn in the same quarter in 2023. Its net profit was down 24.6 per cent at SEK294m (€25.3m)
The Tur lottery division was the only segment to see growth in the quarter. It remains the operator’s largest segment, but drops in revenue at Sport & Casino, Casino Cosmopol and Vegas resulted in a fall overall, partly due to the closure of two out of Casino Cosmopol’s three land-based casinos in February and the reduction of hours at the remaining Stockholm venue.
Svenska Spel chairman and interim CEO Erik Strand said the casino closures “had a major impact on the group’s results during the quarter” but that the “underlying business is still stable with strong results from Tur.”
He added: “We have a stable business with strong brands, the highest image in the gaming industry and high commitment among employees. But we also have challenges in the outside world such as slowing growth in the gambling market and recession in the Swedish economy.”
Tur’s revenue was up 6.4 per cent at SEK1.24bn, driven by Eurojackpot and Triss. The division also benefited from a jump in sales over Valentine’s Day and Easter. Revenue from the Sport & Casino division was down 2.8 per cent at SEK549m due to a weaker sports offering. Revenue from the Casino Cosmopol and Vegas division was down 31.6 per cent at SEK169m. Overall revenue from online gambling rose 5.8 per cent to SEK1.09bn, representing more than half of all revenue
Net profit was also impacted by higher spending on gaming operations and tax. Personnel costs rose 37.5 per cent to SEK425m. Meanwhile, the operator is to appeal a financial penalty issued by the Swedish gambling regulator Spelinspektionen over player protection deficiencies.
Strand took up the CEO role on an interim basis following the departure of Patrik Hofbauer on January 31 to join telecommunications company Telia Company.
