Svenska Spel’s digital business continues to grow during the first quarter of the year and the Sports & Casino business area is increasing its revenues. This is shown by Svenska Spel’s interim report January – March 2019, which is presented today.

Net gaming revenues decreased during the first quarter to MSEK 2,058, which is 6 per cent lower than the same quarter last year. Net operating margin was 25 percent, with adjustment for gaming tax 45 percent (52). Gambling tax and estimated income tax for the quarter amounted to SEK 510 million and has had a significant effect on net sales from gaming operations, etc., operating income, earnings and operating margin.

The Sports & Casino business area – which operates in the market for commercial online games and betting, and where the new games online casino and games on horses are included – increases by just over 4 per cent compared with the previous year, while the business area Tur decreases by 6 per cent. The Casino Cosmopol & Vegas business area declined by 17 percent, and the biggest impact on net gaming revenues is Vegas’s ATMs, which decrease by SEK 48 million or 21 percent.

Svenska Spel’s digital business is increasing by 14 per cent compared with the same quarter last year, of which mobile phone sales are increasing by just over 21 per cent. Digital sales now account for 36 percent of the total deal.

We are satisfied with the results based on the conditions. The transition to a new gaming market has entailed a major transition of Svenska Spel with the adaptation of the Group to the new gaming regulation and competition law. As a result, among other things, the Sports & Casino business area had to build up a new customer database, completely separated from the rest of the Group, and that due to the division of our products, we completed a successful combination offer like Saturday Candy. These are two examples of measures that have affected the result, says Patrik Hofbauer, President and CEO of Svenska Spel.

During the quarter, the biggest game win ever in Sweden’s history fell by SEK 562 million at Eurojackpot. The Tour business area launched among others the games Pacman online and Keno Xpress. The Sports & Casino business area launched the product news online casino and games on horses that were well received by the customers.

For gaming, Svenska Spel has for the fourth time passed the criteria for European Lotteries Certification Responsible Gaming Standards, which also means certification for the World Lottery Association’s Responsible Gaming Framework Level 4.

Svenska Spel has been named the most sustainable brand in the gaming industry and is also one of the Swedish companies that strengthened its sustainability standing most since 2018 – it shows Sustainable Brand Index’s large survey among 18,600 Swedish consumers who rank Svenska Spel highest by all gaming companies. Svenska Spel’s sustainability work was also praised by the Swedish Gambling Award for the care talks made with customers with an identified increased risk behavior.

We are finally up and running with the new Svenska Spel in a re-regulated gaming market. During the first quarter, we show that we are stable as the entire Swedish people’s gaming company. Our focus ahead is to further strengthen our products and services to give our customers even better experiences, but with continued consideration of our customers, ”says Patrik Hofbauer.