Swedish operator Svenska Spel reported operating profits up by 12 percent during the first half of 2020. This despite the fact that the effects of covid-19 had a major impact on revenues as a result of closed physical casinos and temporarily paused sports games.

The number games continue to develop positively during the period and at the end of the second quarter it has also turned upwards for the sports games.

We show innovative power and perseverance during a tough time by continuing to launch new games and improve the gaming experience for our customers. Despite the fact that covid-19 left deep traces in many ways and despite the fact that it is not over yet, it looks brighter going forward. We are on the way up again after having managed the rapid transition to the big and unexpected changes during the spring, says Patrik Hofbauer, President and CEO of Svenska Spel.

The Group’s net gaming revenues during the first half of the year amounted to SEK 3,698 M (4,092), a decrease of SEK 394 M or 10 percent compared with 2019. Operating profit during the first half of the year amounted to SEK 1,174 M (1,053), an increase of SEK 121 M or 12 percent. The improvement is primarily due to higher net gaming revenues for the Tur business area, reduced operating costs and a positive effect on the gaming tax due to lower net gaming revenues and large profit payments.

The Group’s net gaming revenues for the second quarter are SEK 1,643 million, which is lower than the same quarter last year (2,036). Net gaming revenue for the Sport & Casino business area decreases by 37 percent, while the Tur business area increases by 3 percent. Business area Casino Cosmopol & Vegas decreases by 61 percent. Operating profit of SEK 473 M (534) means a decrease of 11 percent compared with the same period last year, which is due to lower net gaming revenues. Significantly lower operating costs and a positive effect on gaming tax due to large profit payments means that the decline in operating profit remains at 11 percent.

The effects of covid-19 have affected the Svenska Spel Group in several areas. At the beginning of April, the Sport & Casino business area was virtually without sports betting, but as matches and sporting events have started, operations have recovered and employees who have had short-term work are back at work. The Tur business area has taken advantage of the opportunity in the changed customer behavior as a result of covid-19. Many customers have gone from playing in-store to digital gaming and Tur’s customer base continues to grow. Within the Casino Cosmopol & Vegas business area, all four casinos are still temporarily closed, and the majority of employees have short-term work. The Vegas vending machines continue to be affected by the fact that many restaurants have temporarily closed.

Svenska Spel’s expert group has continued its in-depth analysis of risk gambling. The results show that more people chose to try new games during the period, but show no general increase in risk-taking.

As Sweden’s largest sports sponsor, Svenska Spel has tried to support its partners in a difficult time. The most extensive effort was an advance payment of Gräsroten, which meant that 3,600 associations in the country were allowed to share in SEK 20 million already in May. Svenska Spel has also brought forward payment of certification within Elite Football Women, as well as sponsorship payments to the Swedish Handball Association and Swedish Elite Handball. During the period, the agreement with the Swedish Sports Confederation was extended to a value of SEK 17 million.

On the product side, the Tur business area has launched animated digital tickets and also expanded the possibilities of giving away Triss digitally, which has been a success in connection with Mother’s Day, among other things. Luck has also broken records in terms of the number of customers playing together. The Sport & Casino business area can now offer over 1,000 online casino games and at the end of June, Sport & Casino’s highest profit ever fell by 28 million on the online casino game Mega Fortune. There have also been million winnings on Europatipset and Stryktipset. At Tur, the Dream Win on Lotto fell by 87 million in April and in May the highest win on the Eurojackpot landed for the third time ever in Sweden, this time by 141 million.

In April, Svenska Spel became the first in Sweden to offer payouts via Swish, a service that is appreciated by customers. Within the Casino Cosmopol & Vegas business area, the Vegas vending machines have received cash-free payment.