Svenska Spel online revenues up 20%

Business News

Svenska Spel’s second quarter is characterized by continued high growth in the mobile phone, increased sports offer, turnover beyond expectations in connection with the World Cup, and preparations for a new gaming market.

Online gaming revenues are reduced to SEK 2,082 million, which is 3.9 percent lower than the same quarter last year. The result of MSEK 973 represents a decrease of 11.5 percent, and the operating margin is 19.1 percent lower than the previous year (21.1). It is mainly revenue stakes for Vegas vending machines that affect earnings and that preparations for a new gaming market are ongoing with high intensity, which also results in significantly higher costs.

Sales online grow by 20 percent, of which mobile phone sales increase by 42 percent compared with the same quarter last year.

“Customers respond positively to the news we deliver, online gaming revenue excluding Vegas is on par with last year, despite the fact that more and more volunteers turn off or break from gaming,” says Lennart Käll, President and CEO of Svenska Spel.

During the quarter Svenska Spel launched Rubbet, a new package of all song games in a purchase, and the range of sports games has been expanded in terms of life games. Throughout June, approximately 44,500 matches and sporting events have been offered, compared to 25,900 the same period last year. The World Cup has made a lot of commitment in all categories of customers and the turnover target has already been exceeded before the championship is finished.

In parallel with the regular activities, Svenska Spel is working with the adaptation of the business to meet the legal requirements of the new gaming market, which will enter into force on January 1, 2019. As of June 1, the Group has been divided into three business areas, Sports & Casino, Tour, and Casino Cosmopol & Vegas, to create a clearer focus and secure the competition law aspects of a new gaming market.

“We are still strong as the entire Swedish people’s gaming company and meet customer demand for gaming experience with an expanded range and product development. Customers continue to give us high ratings in our satisfied customer index, and with broad margins we have the highest image value of the gaming companies. We look forward to the new gaming market, says Lennart Käll.

Svenska Spels CEO Lennart Käll retires as previously announced in connection with this interim report and Patrik Hofbauer will be appointed new CEO and CEO by mid December 2018. During the period until now, Svenska Spel’s current CFO and vice president, Marie Loob, are acting CEO.