Svenska Spel Reports Steady Growth in Q3 Revenue

In its latest trading update, Svenska Spel announced that its Q3 revenue for 2023 saw a 1% year-on-year increase, reaching SEK1.97 billion. This steady growth is in line with the overall performance of the Swedish market, which saw its growth come to a halt during the first half of 2023, marking the first time it stagnated since mid-2020.

The net gaming revenue for Tur, Svenska Spel's lottery division and its largest business area, experienced a 2% year-on-year growth, amounting to SEK1.2 billion. This growth can be attributed to the success of the Eurojackpot game.

The most significant percentage rise occurred in Sport & Casino, with a 4% year-on-year increase, reaching SEK510 million. This boost was driven by a continued increase in active customers, a successful launch of new poker games, and the expansion of online casino offerings.

However, the Casino Cosmopol and Vegas business areas reported a decrease in net gaming revenue by 11%, amounting to SEK247 million. Svenska Spel cited increased competition from online games and restaurant casinos as the primary commercial challenges for these brands. To address this, the company adapted its business practices, including introducing new opening times at Casino Cosmopol properties starting in October.

Online net gaming revenue also witnessed a 6% increase, totaling SEK1.0 billion and now accounting for 53% of the company's total business. Notably, 44% of this online revenue is generated through mobile platforms.

Despite increased costs and a SEK35 million loss for Casino Cosmopol and Vegas, Svenska Spel reported an operating profit for the third quarter, marking a 1% year-on-year increase. This small rise in profit comes despite the impact of reduced income and increased expenses related to social responsibility and anti-money laundering measures.

Patrik Hofbauer, the president and chief executive of Svenska Spel, commented on the company's performance, stating, "In a time of zero growth, revenues for two out of three business areas grew during the third quarter. Our customer base is growing, and the share of healthy revenue is increasing – we, therefore, have more customers who also play more sustainably. We have increased results, high and consistent customer satisfaction, and also high availability of our services."

Hofbauer recently announced his departure from Svenska Spel in early 2024 to assume the role of president and CEO at the Swedish telecommunications company Telia Company.

According to Spelinspektionen figures, the Swedish market experienced a 1% drop in gross gambling revenue during the three months to 30 June, affecting various segments, including commercial online gambling, sports betting, lottery, slots, and land-based commercial gaming.