Svenska Spel revenue falls in H1

Gaming revenue was down 2.9 per cent at €331.2m.

Sweden.- The state-controlled gambling operator Svenska Spel has reported net gaming revenue of SEK3.82bn (€331.2m) for the first half of the year. That’s a drop of 2.9 per cent year-on-year.

The Tur lottery division generated SEK2.48bn, up 4.6 per cent thanks to increased sales for Eurojackpot. However, the Sport & Casino division saw revenue decline by 2.4 per cent to SEK1.05bn, and the closure of two out of Casino Cosmopol’s three venues caused land-based casino revenue to fall by 22.3 per cent to SEK195m. Meanwhile, revenue from the Vegas gaming machine division dropped by 20.4 per cent.

Svenska Spel ascribed the declines to new responsible gambling measures and the drop in visitation and closure to land-based casinos. It noted that internet revenue was up 6.7 per cent at SEK2.19bn. Some 57 per cent of this was from online gambling and 48 per cent from mobile. Offline revenue was down 4.5 per cent at SEK1.32bn.

Operating profit was down 18.2 per cent to SEK950m, which Svenska Spel said was mainly owing to non-recurring costs of SEK375m, including restructuring costs, a SEK100m penalty from the Swedish regulator Spelinspektionen and costs associated with liquidating the two land-based casinos.

Svenska Spel’s new CEO and president Anna Johnson said the operator had taken steps to boost longer-term growth. She said the Casino Cosmopol closures, and the potential shutdown of the remaining Stockholm casino proposed by the government, means that Svenska Spel was in a stronger position to invest in other areas.

She said: “The effect of the change is now visible for Svenska Spel in the form of lower costs, improved results and a strengthened operating margin. It frees up space going forward for significant investments in transformation and growth.

“We carried out a review of the organisation, working methods and costs. We have subsequently carried out a reorganisation of Svenska Spel with a new organisation in place from 1 April. We have also closed our casinos in Malmö and Gothenburg. This has led to lower costs, an improved result and a strengthened operating margin during the second quarter. It gives us an opportunity to invest in transformation, strengthened gambling responsibility work and investments that create growth.”

She added: “It is now a month since I took office as president and CEO of Svenska Spel. It is an extremely exciting opportunity to lead a group that has a strong market position and four million customers to whom we offer joy, excitement and dreams through our well-known games. Although now it’s summer and vacation for many of us, I know that we at Svenska Spel every day continue to create sustainable gaming experiences that contribute to a better Sweden.”