Svenska Spel records flat NGR growth in Q2 2023
Swedish operator’s strong online sports and casino arm hampered by poor return from land-based operations
Svenska Spel has recorded a flat year-on-year (YoY) increase in net gaming revenue (NGR) for Q2 2023 despite improvements across the group’s online operations.
NGR for the reporting period amounted to SEK1.97bn (£150m) compared to SEK1.96bn in Q2 2022.
The operator said the second quarter was characterised by “increased profitability and a stronger operating margin”, despite the decreases in revenue for certain arms of the business.
When breaking this down by vertical, the operator’s sports and casino division revenue grew 6% YoY, recording SEK514m and accounting for 26% of Svenska Spel’s overall revenue.
Svenska Spel said an improved sports betting margin and an increase in online casino customers helped drive the vertical.
Tur, the lottery side of the business, saw a minimal increase of 1%, reaching SEK1.2bn in Q2 2023. Tur accounted for 61% of the operator’s overall revenue, the same proportion as it did in Q2 2022.
Casino Cosmopol and Vegas, the operator’s land-based arm, saw a decrease of 13% YoY as revenue dropped by SEK38m to SEK248m.
The dip in revenue was attributed to fewer number of players visiting Svenska Spel’s venues and staking less. Another reason for this decline was attributed to the strengthened measures in the operator’s duty of care and anti-money laundering processes.
Elsewhere, operating profit increased 3% YoY to SEK550m with a corresponding margin of 28%.
Svenska Spel also posted a pre-tax profit of SEK597m, representing an 11.4% YoY increase on the SEK536m posted last year.
Post-tax profit amounted to SEK474m.
Patrik Hofbauer, Svenska Spel president and CEO, said: “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.