Svenska Spel has published its interim report for 2023, highlighting stable revenue. The year saw Svenska Spel earn a total net revenue of SEK 8,029 million ($766 million), in line with last year’s results. This followed a stable fourth quarter in which the company recorded net gaming revenue of SEK 2,121 million ($202 million) – a 3% year-on-year decrease.
Furthermore, Svenska Spel reported an operating profit of SEK 485 million ($46 million) in Q4, representing a decrease of 16%. The operating margin for the period also declined to 23%. The company’s full-year results, meanwhile, demonstrated an operating profit of SEK 2,333 million ($222 million) and an operating margin of 30%.
Net profit for the year, meanwhile, stood at SEK 1,941 million ($185 million), representing a 3% year-on-year decline.
Svenska Spel added that its board is planning to pay out a SEK 1.9 billion ($181 million) dividend.
Some of Svenska Spel’s Brands Continue to Struggle
The lower Q4 results were attributed to a decrease in the income of Casino Cosmopol and Vegas caused by lower customer demand and ongoing restructuring activities. Net gaming revenue of this segment was down by 25% as the sector continues to experience fierce competition from the online market.
Svenska Spel was forced to offset this decline by reducing the workforce of Casino Cosmopol, laying 220 full-time positions off, which included roughly 100 redundancies. Svenska Spel also intends to close its casinos in Malmö and Gothenburg to face the ongoing financial challenges. The casino in Stockholm will continue operating normally.
In Q4, the Tur lottery revenue experienced a net gaming revenue decline of 2% year-on-year. The sports & Casino segment, on the other hand, experienced a 7% increase in net gaming revenue thanks to an increase in active customers and sales.
An Eventful Year for Svenska Spel
In Q4, Svenska Spel’s healthy revenue portion increased to an all-time high. Svenska Spel was also the most sustainable gambling company in the Sustainable Brand Index and was among the top 10 best employers, according to Universum’s annual survey. In addition, the company paid SEK 35 million ($3.3 million) to 8,654 associations in youth sports through its Gräsroten initiative.
Meanwhile, 2023 saw Svenska Spel’s Sports & Casino segment launch a new poker platform and Momang – a new online casino. The Tur brand, on the other hand, launched Supportern, a digital lottery for Swedish sports associations.
The year also saw Svenska Spel select Kambi as its new sportsbook provider, allowing it to enhance the Oddset brand.
Erik Strand, Svenska Spel’s president and CEO, commented on the results, praising his team for their dedication to sustainable gambling.
Our continued focus on sustainable gaming is having an effect and the share of healthy revenue is increasing compared to the same quarter last year. The number of sustainable customers is also increasing to the highest level ever.
Erik Strand, president & CEO, Svenska Spel
Speaking of Sweden, BOS’s chief recently discussed the ban on online gambling advertising in public transport, expressing his disagreement with the measure.