Svenska Spel Sees 49% Drop in Operating Profit in Q1 2024
Swedish gambling operator Svenska Spel has published its Q1 2024 interim report, revealing some highs and lows in its performance in the first quarter.
Despite growth in its online and lottery divisions, Svenska Spel's operating profits decreased by 49% in Q1. (Source: Pixabay)
LISTEN TO THIS ARTICLE:During the quarter, the group's net revenue hit SEK1.96 billion ($0.18 billion), marking a marginal 1% year-on-year decline. Of the total revenue, the Casino Cosmopol and Vegas business area accounted for SEK 169 million, a 32% decrease year-on-year.
Svenska Spel attributed this decline to restructuring efforts within the Casino Cosmopol and Vegas area, closures of Casino Cosmopol in Malmo and Gothenburg, and reduced operating hours at the remaining casino in Stockholm.
The operator also recorded a 3% decline to SEK 549 million in its sports and casino business area. It primarily attributed this decline to poorer results in pool games.
Q1 Positive Revenue Highlights
Meanwhile, Svenska Spel’s online business experienced positive growth during the quarter. Net revenue in this segment increased by 6% year-on-year to SEK 1.09 billion. The figure also constitutes 56% of the operator’s revenue in the first quarter.
Results from the Lottery division, Tur, were also promising. Net revenue also increased by 6% to SEK1.24bn. The operator credited this growth to Eurojackpot and the steady sales growth of the game Triss.
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Operating Profit Drops 49%
However, despite the improvement in its online and lottery divisions, the group’s operating profit reduced by 49% to SEK 310 million.
Svenska Spel linked this decline to various costs incurred during the first quarter, including the liquidation of its casinos in Malmo and Gothenburg, restructuring expenses associated with the group review, and a penalty fee.
Svenska Spel Fined for Player Welfare Failures
In March, the operator was slammed with a fine of SEK100 million ($9.5 million) by the Swedish gambling regulator for several failures in ensuring player welfare.
According to Spelinspektionen, Svenska Spel didn't implement adequate measures to protect players from excessive gambling, and they failed to assist them in reducing their gambling activities when necessary.
While the operator accepted the fine, it highlighted the need for clearer guidance and supervisory decisions from the regulator.
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