Published: April 25, 2023

Svenska Spel Interim report January – March 2023: Good start and increased sustainable gambling

Svenska Spel begins the year with growth and an eventful quarter with the launch of new games such as Momang and improvements to the customer experience in existing games such as Keno. The proportion of healthy revenues and the number of sustainable customers is increasing compared to the same quarter last year, which shows that the measures in gambling responsibility are having an effect.

The group's net gaming revenue for the quarter is SEK 1,976 million (1,935), which is an increase of 2 percent. The operating profit of SEK 612 million (595) is an increase of 3 percent, and the operating margin amounts to 31 percent (31). Online business increases by 8 percent compared to the same quarter last year, and accounts for 52 percent (49) of the group's revenue during the quarter.

The net gaming revenue for the Sport & Casino business area increased during the quarter by 2 percent compared to the same quarter last year. This is thanks, among other things, to a good development for the pool games, especially Stryktipset and Powerplay.

Tur business area increases net gaming revenue by 2 percent. The increase is also driven this quarter by number games and above all Eurojackpot.

For the Casino Cosmopol & Vegas business area, net gaming revenue increases by 3 percent. The increase is due to the fact that Casino Cosmopol this year has a complete range of games and normal opening hours, compared to a limited operation in the same quarter last year. The entire business area is negatively affected by the deteriorating financial situation for customers and slot machines Vegas also continue to be negatively affected by strengthened gambling responsibility measures, which however have the intended positive effect on healthy revenues.

- Even in an uncertain time, we continue to create long-term value for customers, owners and employees, as well as for Swedish sports and society at large. We do this by our surplus going to the treasury and by our support for Swedish sports. But also by offering sustainable and fun gaming experiences, Patrik Hofbauer, president and CEO of Svenska Spel.

With Momang, a new Pay'n Play online casino, Svenska Spel meets customers' demand for simple and flexible games. Keno has introduced winning weeks and new types of winnings where customers can also win experiences. In number games and lotteries, it is now easier to play together in the team game service, the subscription service has been improved and Apple Pay has been introduced as a new payment solution.

During the quarter, Svenska Spel distributed 52 million winnings in number games and lotteries with a total value of more than SEK 291 million. The quarter's two highest wins were just over SEK 32 and almost SEK 15 million respectively at Eurojackpot. The sports games have delivered 18 million in winnings during the quarter and Europa tip has accounted for more than half of these. The 26th edition of Tips-SM has been completed with more participants than last year, around 55,000 people and just over 3,500 teams registered.

Svenska Spel's image continues to be the highest among gambling companies. This is confirmed by the external survey Sustainable Brand Index, where the Swedish people rank Sweden's most sustainable brands. Svenska Spel is the best in the industry and with an improved overall position since the previous year. Svenska Spel has also received the Signum prize for the long-term work of nurturing the brand.

With the uncertainty in the outside world, which can mean increased risks of developing gambling problems, Svenska Spel follows the development of gambling at the group extra carefully. When analyzing the first quarter of this year, there is no increase in risky gambling at Svenska Spel, on the contrary, a certain decrease compared to the same period in 2022. During the quarter, the proportion of healthy income and the number of sustainable customers also increase compared to the same quarter last year, which shows that Svenska Spel's strengthened gambling responsibility measures are having an effect.

At the end of March, Svenska Spel reopened the office in Visby after the largest renovation of the premises since the office opened in 1973, which is a big investment for both Gotland and the employees. It is now a workplace with premises that reflect what Svenska Spel is today – a sustainable, modern tech company that offers entertaining and unique gaming experiences.

Summary of the first quarter

  • Net gaming revenue for the group amounted to SEK 1,976 million (1,935), an increase of SEK 41 million or 2%, with online business increasing by 8%.
  • The share of healthy revenue* and number of sustainable customers* increases compared to the same quarter last year.
  • Operating profit for the group amounted to SEK 612 million (595), an increase of SEK 17 million or 3%.
  • The operating margin amounted to 31% (31).
  • The result for the group amounted to SEK 507 million (467), an increase of SEK 40 million or 9%.
  • The image value amounted to 51% (50) and is still the highest among gambling companies.
  • Svenska Spel is the industry best in the Sustainable Brand Index as the most sustainable gaming company.
  • Sport & Casino has launched a new online casino, Momang, and also several improvements to existing games within the group.
  • Casino Cosmopol in Stockholm has celebrated its 20th anniversary.

* Definition, see page 19 of Interim report January – March 2023.

Here you can read the Interim Report January – March 2023 in its entirety.

https://om.svenskaspel.se/koncernnyheter/delarsrapport-januari-mars-2023-bra-start-och-okat-hallbart-spelande/

 

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