Svenska Spel recovers financial footing in third quarter
Svenska Spel reported a strong third quarter with good profitability for the Group and increased revenues in sports betting as well as number games and lotteries.
The quarter’s major product launches Trav & Galopp and BilTriss exceed expectations and have been well received by customers. In addition, the gaming responsibility has an effect, among other things in the form of a large increase in the number of completed self-tests, which means that customers can play safely and securely. This is shown by Svenska Spel’s interim report for January – September 2020.
We have good profitability and revenues are increasing for two of our three business areas. Our sports games are going really well and we are also increasing revenues from number games and lotteries. The fact that the Group’s total revenues are declining is due to the fact that our physical casinos have been closed throughout the quarter. Despite this, we thus have good profitability for the group as a whole, which shows strength and stability, says Patrik Hofbauer, President and CEO of Svenska Spel.
Net gaming revenues for the Sport & Casino business area increased by seven percent compared with the same quarter last year. This is despite the government’s ordinance on new temporary gambling liability measures for online casinos from 2 July, which is pushing revenue. The Tur business area increases by five percent and has a continued good development of the customer base and the digital business. The digital business now accounts for 48 percent of the Group’s revenues.
The Group’s net gaming revenues for the third quarter are SEK 1,848 million, which is lower than the same quarter last year (2,012). This is due to the Casino Cosmopol & Vegas business area decreasing by 59 percent as all physical casinos have been closed as a result of covid-19 and the ATMs in Vegas continue to be affected by the fact that many restaurants have had to close. Vegas is also affected by the new temporary gambling liability measures.
Operating profit of SEK 531 million (639) means a decrease compared with the same period last year, which is due to Casino Cosmopol reporting a sharply deteriorating operating profit of just over SEK 215 million, which includes a winding-up cost of the casino in Sundsvall of SEK 81 million. This in turn has had a negative impact on the operating margin, which is 29 percent (32).
Svenska Spel continues to deliver million winnings to the Swedish people. This year, Stryktipset has already delivered 47 million profits, a record for the past five years. In number games and lotteries, Svenska Spel has so far this year distributed 242 million winnings totaling more than one billion kronor.