Increased profitability and a stronger operating margin characterize the second quarter for the Svenska Spel Group. This despite the fact that the result is negatively affected by challenges for Casino Cosmopol and the slot machines Vegas.

We continue to simplify and improve the gaming experience for customers and our focus on sustainable gaming has a positive effect. The share of healthy revenues and the number of sustainable customers is increasing, while risky gambling is decreasing, says Patrik Hofbauer, president and CEO of Svenska Spel.

The group’s net gaming revenue for the quarter is SEK 1,967 million (1,963), which is a small increase compared to the same quarter last year. The operating profit of SEK 550 million (531) is an increase of 3 percent or SEK 18 million – this despite the negative impact of the result for the Casino Cosmopol & Vegas business area, which decreases by SEK 29 million. The operating margin has strengthened and amounts to 28 percent (27). For the group as a whole, online business increases by 9 percent compared to the same quarter last year, and accounts for 52 percent (48) of the group’s revenue during the quarter.

The net gaming revenue for the Sport & Casino business area increased during the quarter by 6 percent compared to the same quarter last year. The increase is driven, among other things, by pool games such as Stryktipset, good margins in sports betting, growth for online casinos and a general increase in the number of customers within the business area.

Business area Tur increases net gaming revenue by 1 percent compared to the corresponding quarter last year. Eurojackpot continues to drive revenue and broke sales records during midsummer week when the jackpot was a maximum of SEK 1.4 billion.

For the Casino Cosmopol & Vegas business area, net gaming revenue decreases by 13 percent. The operating profit of -52 MSEK is a decrease of 29 MSEK compared to the same quarter last year. This is primarily due to continued increased competition from online games, which among other things leads to fewer guests and lower revenues. Another reason is strengthened measures in the work with duty of care and against money laundering. It affects revenue negatively, but has a positive effect on healthy revenue. Business area Casino Cosmopol & Vegas is now facing the challenges with a restructuring of the business, which includes measures to reduce costs, among other things.

During the quarter, a new poker platform was launched, which gives customers a larger range of games and an even better mobile experience. Through the collaboration with one of the largest poker networks in the world, customers also get more tournaments and larger prize pools. In sports games, the PIX Mix has been launched in stores, a packaged game based on four pool games. Within number games and lotteries, three new digital lotteries have been launched. There have also been winning weeks for Keno with a unique experience win and an increased number of monetary wins, as well as the drawing of Second Chance at Lotto. The Poker Championship has been held at Casino Cosmopol with more than 400 participants, and two new games have been launched on the Vegas slots.

The customer experience has been improved through the possibility of correcting lottery tickets in manned cash registers at gambling agents. The launch of the new digital service Ombudsportalen facilitates communication with Svenska Spel’s approximately 5,000 agents.

During the quarter, Svenska Spel distributed 95 million winnings in number games and lotteries with a total value of more than SEK 268 million. The highest win was over SEK 63 million at Eurojackpot. The sports and casino games have delivered 25 million in winnings during the quarter, of which 19 million in winnings on Stryktipset and Europatipset.

In the previous quarter, risky gambling by Svenska Spel’s customers decreased compared to the same quarter last year. That tendency continues in the second quarter and risky gambling at Svenska Spel shows a certain reduction compared to the same quarter last year. An important reason for the reduction is strengthened gambling responsibility measures. During the quarter, the proportion of healthy revenues and the number of sustainable customers also increase.

Starting with this interim report, Svenska Spel reports half-yearly key figures that show what proportion of customers have been contacted as a result of signs of risky gambling and what effect these contacts have had. The results show that the measures have a positive effect and that 7 out of 10 customers reduce their gambling after being contacted by Svenska Spel.

At the Swedish Gambling Award, Svenska Spel received an award for its support for research into problem gambling, where the group has contributed over SEK 60 million since 2010. Research support is an important part of creating long-term value for Svenska Spel’s customers, owners and employees.

Summary of the second quarter

Net gaming revenue for the group amounted to SEK 1,967 million (1,963), an increase of SEK 4 million or 0%.The online sales channel increased by 9%.The proportion of healthy revenue* and number of sustainable customers* increases compared to the same quarter last year.
Operating profit for the group amounted to SEK 550 million (531), an increase of SEK 18 million or 3%.The operating margin amounted to 28% (27).The result for the group amounted to SEK 474 million (425), an increase of SEK 49 million or 12%.