Svenska Spel’s Interim Report Shows Stable Revenue in 2023

Svenska Spel, the Swedish gambling company, has released its interim report for 2023, revealing stable revenue despite some challenges. The company reported a total net revenue of SEK 8,029 million ($766 million) for the year, which was in line with the previous year’s results. In the fourth quarter, Svenska Spel recorded a net gaming revenue of SEK 2,121 million ($202 million), marking a 3% decrease compared to the same period the year before.

The company also reported an operating profit of SEK 485 million ($46 million) in the fourth quarter, showing a 16% decrease, along with a decline in the operating margin to 23%. However, the full-year results demonstrated an operating profit of SEK 2,333 million ($222 million) and an operating margin of 30%. Despite these profits, the net profit for the year saw a 3% year-on-year decline to SEK 1,941 million ($185 million).

Svenska Spel’s board is planning to distribute a SEK 1.9 billion ($181 million) dividend following the year’s results.

Some of Svenska Spel’s Brands Struggle

The company attributed the lower Q4 results to a decrease in the income of Casino Cosmopol and Vegas, which was caused by lower customer demand and ongoing restructuring activities. This segment experienced a 25% decrease in net gaming revenue due to fierce competition from the online market.

In response to this decline, Svenska Spel was forced to lay off 220 full-time positions, including approximately 100 redundancies, and plans to close its casinos in Malmö and Gothenburg to address ongoing financial challenges. On the other hand, the casino in Stockholm will continue operating normally.

The lottery revenue of the Tur segment also experienced a 2% year-on-year decline in net gaming revenue in Q4. However, the sports & Casino segment saw a 7% increase in net gaming revenue due to an increase in active customers and sales.

An Eventful Year for Svenska Spel

Despite the challenges, Svenska Spel experienced some notable achievements in 2023. The company’s healthy revenue portion reached an all-time high in Q4. Svenska Spel was also recognized as the most sustainable gambling company in the Sustainable Brand Index and was among the top 10 best employers, according to Universum’s annual survey. Additionally, the company contributed SEK 35 million ($3.3 million) to 8,654 associations in youth sports through its Gräsroten initiative.

In terms of product launches, 2023 saw Svenska Spel’s Sports & Casino segment introduce a new poker platform and Momang – a new online casino. The Tur brand also launched Supportern, a digital lottery for Swedish sports associations. Furthermore, Svenska Spel selected Kambi as its new sportsbook provider to enhance the Oddset brand.

Erik Strand, Svenska Spel’s president and CEO, attributed the company’s success to its dedication to sustainable gambling, stating, “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.”

In other news related to gambling in Sweden, the chief of the Swedish Trade Association for Online Gambling (BOS) recently expressed disagreement with the ban on online gambling advertising in public transport.

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