Svenska Spel revenue falls in H1

The Swedish operator reports a 9.6 per cent drop in gaming revenue for the first half, but mitigated the loss through expanding online products.

Sweden.- Svenska Spel has reported a 9.6 per cent drop in net gaming revenue for the first half of the year to SEK3.7billion (€356million). 

Operating profit meanwhile increased to SEK1.2billion (€121million) due to a 3.8 per cent increase in net gaming revenues for Tur interactive lottery, reduced operating costs and a positive effect on gaming tax.

Svenska Spel has grown its online casino offering, which reached more than 1,000 games by the end of June, in an attempt to offset the suspension of live sporting events.

It also launched digital tickets for Tur lottery projects and relaunched proxy sales, and introduced cashless payments at video lottery terminals and Vegas gaming machines.

Revenue from Tur grew 3.8 per cent to SEK2.33billion, though the Sport & Casino division saw revenue fall 17.2 per cent to SEK829 million because of the cancellation of sporting events.

Revenue from the operator’s four Casino Cosmopol venues, which remain closed, and Vegas gaming machines, many of which are hosted in restaurants that also remain closed, fell 36.2 per cent to SEK542million.

The operator noted that close monitoring of customer behaviour during the pandemic suggested that while players had shifted to playing new products during the period, there was little signs of a general increase in risky behaviour. 

Svenska Spel paid SEK620million in gaming taxes in the first half, down from SEK783million in the prior year, and distributed SEK20million in funding to grassroots sports organisations to help with the challenges of the Covid-19 crisis.

Costs fell by 14.1 per cent to SEK507million. 

Patrik Hofbauer, President and CEO of Svenska Spel, said: “We have shown an ability to innovate and perseverance during a tough time, by continuing to launch new games and improve the gaming experience for our customers.

“Despite the fact that COVID-19 has had significant impacts in many ways, and despite the fact that it is not over yet, it looks brighter going forward. We are on the way up again after having managed the rapid transition to the big and unexpected changes during the spring.”