Revenues and profits down at Veikkaus after ‘significant impact’ of Covid-19
Veikkaus said January-June trading was exceptional and commercially challenging. Slot machines were closed for almost 3.5 months during the review period and the range offered by betting decreased significantly.
The corona period dropped about a third of Veikkaus’ normal weekly income. According to the current estimate, Veikkaus’ full-year result will be approximately EUR 300 million lower than expected due to the interest rate pandemic, and not the revenue estimate recorded in the state budget, EUR 1,013.5 million.
In order to prevent the spread of the coronavirus, Veikkaus decided to close all its own gaming venues and the gaming machines of the agent network on 13 March. The private venues were reopened with special security measures and opening restrictions on June 26, and the network of agents ’slot machines were opened in mid-July. In addition to the closure of the vending machines, the corona pandemic had a strong impact on, among other things, betting, with almost all sports series at a break due to the corona.
Veikkaus’ profit from gaming operations for the January-June financial year, ie gaming margin, was EUR 607.2 million (-28.1%). According to Veikkaus’ estimate, the effect of the coronavirus on the company’s gaming margin in the first half of the year was approximately EUR -200 million.
Like many other parties, Veikkaus has an exceptional and challenging spring behind it. Due to the interest rate pandemic, Veikkaus ‘return to the state this year is significantly lower than before, Veikkaus’ CFO Regina Sippel says.
The transition to digital gaming was observed somewhat in the spring for those who were identified as gaming, but the transitions were small in terms of both customer numbers and gaming margin. The gaming margin of digital casino games (EUR 101.0 million) was almost the same as in the corresponding period of the previous year (-0.9%).
During the Korona period, sports betting players switched in part to playing other games, especially Toto games. Catering events were canceled in Finland for two months due to gathering restrictions, but in Sweden, operations continued as normal throughout the spring.