Svenska Spel has endured a digital driven first quarter and half of the current year, with the group’s online division helping to offset struggles witnessed in the retail casino and slots segments.
As Patrik Hofbauer, President and CEO, stressed an ongoing ambition of “simplifying and enhancing the gaming experience for customers”, the group reported that net gaming revenue through Q2 remained largely stable at SEK 1.97bn (2022: SEK 1.963). Operating profit for the group increased three percentage points to SEK 550m (2022: SEK 531m).
“Increased profitability and a stronger operating margin characterise the second quarter for the Svenska Spel Group,” commented Hofbauer.
“This despite the result being negatively affected by challenges for Casino Cosmopol and the slot machines Vegas. We continue to simplify and improve the gaming experience for our customers and our focus on sustainable gaming has a positive effect.
“The proportion of healthy revenues and the number of sustainable customers increase, while risk gambling decreases.”
The group’s land-based casino enterprises, situated in Malmö, Gothenburg and Stockholm, and Vegas slots segment, saw NGR drop 13 per cent as operating loss decreased a further SEK 29m to SEK 52m.
This is primarily due to increased online competition, which Svenska Spel noted has led to fewer guests and lower revenue, with strengthened measures regarding AML and duty of care also cited as contributing to the drop.
The Casino Cosmopol and Vegas segment is now undertaking a restructuring, which includes measures to reduce costs.
The Tur lottery business witnessed NGR fractionally increase by one per cent, with the Eurojackpot reportedly continuing to drive revenue via record breaking sales.
Elsewhere, Svenska Spel’s online casino and sports betting division’s NGR increased six per cent, which the company put down to overall igaming growth, an uplift in customer numbers and solid wagering margins.
Furthermore, Svenska Spel reported that a Q1 trend of reduced risky gambling has been maintained through the second quarter of the year.
Due to the implementation of enhanced responsible gambling measures, Hofbauer noted a positive effect on seven out of ten customers following company intervention regarding potentially problematic play.
For the year-to-date, NGR increased one per cent to SEK 3.94bn (2021: SEK 3.89bn), with operating profit up three per cent to SEK 1.16bn (2022: SEK 1.12bn).