SBC News Svenska Spel encounters 2022 hurdles as Q1 NGR declines 3%

Svenska Spel encounters 2022 hurdles as Q1 NGR declines 3%

Swedish gambling company Svenska Spel has reported a ‘challenging start’ to 2022 in that both revenue and earnings have been affected by pandemic impacts and regulatory developments  during the first half of Q1. 

However, as set out in its interim report for January – March 2022, the state-owned group’s focus on gaming liability measures seem to have had a more positive effect on sound revenues, but a negative effect on net gaming revenues.

Furthermore, Svenska Spel’s net gaming revenue for the quarter is SEK 1,935 million (2020: SEK 1,999) which is a decrease of 3% compared with the same quarter last year, whilst operating profit of SEK 595 million (2020: SEK 598) is a decrease of 0.4%. 

Patrik Hofbauer, President and CEO of Svenska Game, commented: “Our revenues and our results are affected by both the pandemic and our strengthened gaming responsibility measures. 

“Despite challenges during the first quarter, I look forward with confidence to the rest of 2022. We continue to provide our customers with entertaining gaming experiences in a responsible way, as we want gaming to be a joy for everyone.”

The operating margin amounts to 31% however, the comparison with the same quarter last year is affected by voluntary repayment of support for short-term work in the first quarter of 2021.

Additionally, the company put the decrease in net gaming revenues for the Sport & Casino business area down to cancelled sports events, but also to the strengthened gambling responsibility measures that have been introduced so that customers do not gamble for more than they can afford and with care for young customers.

However, the Casino Cosmopol & Vegas business area increased net gaming revenues by 77% compared with the same quarter last year when the group’s casinos were shut.

During the quarter, Svenska Spel distributed 62 million winnings in number games and tickets to a total value of more than SEK 204 million. Stryktipset delivered 23 million wins during the quarter and Tips-SM started with 49,752 people and 2,918 teams registered. 

At the end of March, the jackpot on the Eurojackpot was raised from approximately SEK 900 million to SEK 1.2 billion, and at the same time, the number of draws was increased to two per week.

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