Svenska Spel has reported its interim results for the January – June 2024 period, as well as its Q2 results.
H1 results
In the period January – June 2024, Svenska Spel has reported revenue of SEK 3.83bn ($360m), down a relatively small 3% from the same period last year. This decline can be attributed to several factors; however, Svenska Spel pointed to the changes in its casino business as the cause for this, as the operator has ceased the operation of all Casino Cosmopol venues bar the property operating in Stockholm.
Operating profit dropped 18% to SEK 950m, once again partially due to Casino Cosmopol, as the closure costs of the two venues in Gothenburg and Malmö, alongside reorganisation costs and administrative fines, came to a total of SEK 375m.
Profit faced a similar decline, down 19% year-on-year to SEK 794m.
Despite these declines, both Svenska Spel’s online and Tur segments saw growth in H1, with the online sales channel growing by 7%, while Tur net gaming revenue (NGR) grew 5%.
Q2 results
During its second quarter, Svenska Spel reported NGR of SEK 1.87bn, down 5% year-on-year.
Primarily, this decrease can once again be accounted for by the reduced capacity of Svenska Spel’s Casino Cosmopol business, which was down SEK 90m, or 72% by NGR, due to the closure of two casinos compared to last year, leaving only one property, Casino Cosmopol Stockholm, in operation. The operator’s Vegas section also took a hit, with NGR down 24% with a ‘tough economic situation for business partners and strengthened gaming responsibility’ being claimed as the primary cause.
Despite these declines, other segments saw positive growth in the quarter, such as online gaming, which was up 8% in the quarter, accounting for 59% of Svenska Spel’s group revenue. The Tur segment of the business also saw growth, with NGR up 3% year-on-year, while Eurojackpot was a notable factor in this development.
Overall, operating profit for Svenska Spel for Q2 rose 17% to SEK 640m, which Svenska Spel claims was due to restructuring efforts made by the business beginning in October until March. The operator’s profit was also up year-on-year, increasing 5% to SEK 499.
In Q1 2024, Svenska Spel reported an operating profit decrease of 49% – indicative that while profits are still down, there are now signs of developing recovery.
Comments
During this period, Svenska Spel welcomed a new President and CEO in Anna Johnson. On the results, Johnson said: “We are now starting to see the results of the restructuring we have implemented at Svenska Spel. We have conducted a review of the organisation, working methods and costs. We have subsequently carried out a reorganisation of Svenska Spel with a new organisation in place from 1 April.
“We have also closed down our casinos in Malmö and Gothenburg. This has led to lower costs, improved earnings and a strengthened operating margin in the second quarter. It gives us an opportunity to invest in transformation, strengthened responsible gaming work and investments that create growth.”
