Swedish lottery and gaming operator Svenska Spel reported a slight year-over-year decline in revenue and net income in the first half of fiscal year 2022 after growth in only one of its key business segments.
Net game revenue for the six months to June 30 was SEK 3.90 billion (£ 312.9m / € 368.8m / $ 372.3m), down from SEK 39.4bn in the first half of 2021.
The Tur lottery business is Svenska Spel’s main source of revenue, generating 2.33 billion SEK, down 3.2% from last year’s 2.41 billion SEK. Operators said this was primarily due to lower ticket sales than in 2021 due to fewer holidays this year.
Operator revenue from the online sports and casino segment also declined year-over-year, with SEK 10.4bn down 16.5% from 2021 SEK 1.25bn. This is due to the cancellation of some sporting events at the start. One year as a result of restrictions on the new coronavirus (Covid-19) and enhanced responsible gambling measures.
However, in addition to Casino Cosmopol’s land business revenues, Las Vegas-branded slot hall and restaurant casino chains increased SEK526.0m by 85.9% after these facilities were reopened due to the relaxation of Covid-19 restrictions. became.
Online gambling accounted for SEK 1.91 billion in net game revenue, and retail lottery agents generated SEK 1.46 billion. Elsewhere, revenue from restaurants and Bingo Halls reached SEK279.0m and land casinos reached SEK247.0m.
Looking at spending and operating expenses, it was up 12.5% to SEK 1.70 billion. This includes personnel costs SEK577.0m, other external costs equivalent to SEK946.0m, and amortization and write-downs of intangible and property, plant and equipment SEK173.0m.
Operating profit was down 3.8% to SEK 1.13 billion, but pre-tax profit was also SEK 1.13 billion due to minimal financial costs. Svenska Spel paid SEK 233.0m tax and SEK 89 2.0m net profit decreased 4.0% year-on-year.
Revenue in the second quarter was SEK 1.96 billion, up 1.3%. Tur’s revenue was flat at SEK 1.19 billion, with online sports and casino revenue down 19.1% to SEK 484.0m, while revenue from Casino Cosmopol was up 94.6% to SEK 286.0m.
Operating expenses increased by 12.4% at SEK877.0bn and operating profit decreased by 7.5% at SEK531.0m. A financial income of SEK 4.0 million means a profit before tax of SEK 536.0 million, and after paying SEK 111.0 million in tax, a net profit is SEK 425.0 million. It decreased by 6.2% from the previous year.
Patrick Hofbauer, President and Chief Executive Officer of Svenska Spel, said revenues were declining, while revenues from players considered “healthy” gamblers increased.
“Healthy revenue and share of healthy customers increased in the second quarter of this year,” he said. “Casino Cosmopol opened this year, increasing the Group’s bottom line.
“The Group’s revenue and operating income declined somewhat as a result of increased costs in priority investment areas and as an expected effect of our focus on sustainable games.
“Our great commitment and investment in research continues, because it is important for us to constantly increase our knowledge and learn more about the prevention of problems and gambling addiction, but we gain insights from the research into the gambling industry. It’s also important to be able to spread it throughout. “
