Svenska Spel sees opening quarter NGR rise 2% despite new RG measures
Swedish operator reported revenue of SEK1.98bn despite new responsible gambling measures and continuing “deteriorating financial situation”
Svenska Spel has recorded a 2% year-on-year (YoY) increase in net gaming revenue (NGR) for Q1 2023 to SEK1.98bn (£160m).
This result was achieved despite the imposition of new responsible gambling (RG) measures and the ongoing “deteriorating financial situation” in the Swedish market.
The operator’s sports and casino division saw revenue grow 2% YoY, recording revenue of SEK565m and accounting for 29% of Svenska Spel’s overall revenue. This increase was attributed to good progress in developing its pool games, particularly its Stryktipset and Powerplay games.
Tur, the lottery side of the business, saw the same increase of 2%, reaching SEK1.16bn. This means Tur accounts for 59% of the operator’s overall revenue. Svenska Spel also noted that its Eurojackpot game continues to be very popular, which led to the operator adding an extra draw at the end of Q1 2022.
Casino Cosmopol and Vegas, Svenska Spel’s land-based retail division, saw an increase of 3% YoY as revenue increased by SEK7m annually, reaching SEK247m. This slight increase is attributed to its venues closing for two-thirds of the opening quarter of 2022.
For the opening quarter of 2023, the operator saw personnel costs rise 10.8% YoY to SEK309m. Despite this, the business’ other expenses fell 4.2% YoY to SEK433m, down on the SEK452m Svenska Spel spent in the same period in 2022.
Following these results, the firm posted a pre-tax profit of SEK639m, representing an 8% YoY increase on the SEK589m posted last year.
The government taxed the profit of the business SEK132m, leaving the operator with an overall profit of SEK507m.
On the operator’s current position, Patrik Hofbauer, Svenska Spel president and CEO, said: “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.
“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.”