Svenska Spel NGR dips 3% after “more challenging than expected” start to year
Two of the state-owned operator’s three divisions experience falls attributed to the pandemic and strengthened RG measures
Svenska Spel has described the first quarter of 2022 as “more challenging than expected” as net gaming revenue (NGR) decreased 3% year-on-year (YoY) to SEK1.94bn (£157m).
The state-owned Swedish lottery, sports betting and gaming operator recorded a decrease of SEK290m in NGR from SEK2.23bn posted in Q4 2021.
Meanwhile, operating profit, or EBIT, saw a YoY decrease of 0.4% to SEK595m for Q1, while the operating margin hit 31%, which is 1% up YoY, and above the minimum 30% target set by the government.
The former monopoly operator reported that its Sport & Casino division’s revenue slumped 14% from SEK648m to SEK556m, with the fall attributed to cancelled sporting events at the start of the quarter due to the pandemic and new, self-imposed deposit limits introduced in mid-January.
For the Tur (lottery and games) side of Svenska Spel, which accounts for almost 60% of the business, NGR slipped 6% YoY, meaning two out of its three divisions – which account for almost 90% of the group’s NGR – experienced negative growth.
The bright spot was the land-based side, comprising of Casino Cosmopol with three casinos in Stockholm, Gothenburg and Malmo, and Vegas with 4,000 gaming machines in 1,400 restaurants and bingo halls.
NGR for Casino Cosmopol & Vegas soared 77% YoY, although this can be attributed to the fact the three casino properties were closed for 465 days due to the pandemic, including throughout Q1 2021.
Patrik Hofbauer, Svenska Spel CEO, said: “Our revenues and our results are affected by both the pandemic and our strengthened gaming responsibility measures.
“Despite challenges during the first quarter, I look forward with confidence to the rest of 2022. We continue to provide our customers with entertaining gaming experiences in a responsible way, as we want gaming to be a joy for everyone.”