Svenska Spel reported that the company’s land-based Casino Cosmopol and Vegas slot offering were negatively affected by a “deteriorating financial situation” in Q1, related to tightened consumer budgets and strengthened responsible gambling measures.
Despite these twin pressures, the division experienced a 3% increase in revenue for the three-month period ending 31 March. Svenska Spel said that this was because the retail and land-based casino segments were able to operate at full capacity during the period, compared to the same period the previous year when shortened opening times were operational due to effects of the Covid-19 pandemic.
“Even in an uncertain time, we continue to create long-term value for customers, owners and employees, as well as for Swedish sports and society in general,” said Svenska Spel president and CEO Patrik Hofbauer.
“We do this by our surplus going to the treasury and by our support for Swedish sports. But also by offering sustainable and fun gaming experiences.”
Svenska Spel Q1 results
In the first quarter of 2023, the company reported an operating profit of SEK 612m, a 3% rise from the SEK595m the business announced in the same period the previous year, amounting to an operating margin of 31%.
Following the addition of financial investments, Svenska Spel reported a pre-tax profit of SEK 639m, an 8.5% rise compared to the SEK 589 achieved the previous year. The Swedish government taxed the profit SEK 132m, resulting in a result for the period of SEK 507.
Quarter-on-quarter the company’s online revenue increased 8%, now comprising 52% of Svenka Spel’s total revenue for the year, compared to the 49% achieved by the company in the same period the previous year.
The organisation announced that its Sports & Casino division experienced 2% revenue growth year-on-year. The company ascribed this to good progress made in the development in pool games, particularly its Stryktipset and Powerplay offerings.
“During the quarter, we have distributed 52 thousand in winnings in number games and lotteries with a total value of more than SEK291m,” said Hofbauer.
For the quarter, the business saw personnel costs rise 10.8% year-on-year to SEK309m. Despite this, the business’s other expenses fell 4.2% year-on-year to SEK433m, as opposed to the SEK452m Svenska Spel spent in the same period the previous year.
Introduction of supplier licences
The Swedish gaming sector is also bracing for the introduction of B2B supplier licences, of which 48 have now been issued by the Swedish Gambling Authority, as the market prepares for such authorisation to be a requirement for providers entering into agreements with operators.
Many different types of suppliers have received clearance from the regulator, ranging in size from large state-owned entities, stock exchange listed companies, to a number of relatively unknown actors.
The Swedish subsidiary of 888 Holdings, 888 Sweden received a Gaming Software licence, as did Light & Wonder-owned development studio Elk Studios and German gaming business Tipwin. BeyondPlay and its Malta branch obtained a licence, as well as Entain subsidiary Entain Operations.
In addition, the UK division of Gauselmann Group Blueprint Gaming acquired a licence, as well as B2B supplier Wazdan.
“We’re delighted to have been granted a B2B supplier permit by the Swedish Gambling Authority and we thank them for a swift, smooth process,” said Wazdan CEO Michal Imiolek.
“It also serves as a testament to the consistent hard work of our Compliance team, making sure we’re compliant with regulatory requirements and player safety obligations in iGaming markets around the globe.
“Sweden is an important territory for Blueprint, so we’re naturally delighted to ensure our continued commitment to supply games to this region,” added Blueprint director of operations Thomas O’Halleran.
“This new approval allows us to continue our growth and development of content that Swedish players will continue to enjoy and return to.”
Original article: https://igamingbusiness.com/finance/svenksa-spel-revenue-rises-q1/
