SBC News Voice of the Sports Betting Industry
The fallout for Svenska Spel of its Casino Cosmopol closures has reflected on the Swedish operator’s Q1 2024 results.
Smaller net revenue and profits were felt throughout the first four months of the year, but the operator remained positive that its business remains stable – with most notable results seen in its Tur lottery division.
Tur revenue improved by six per cent in comparison to the same period the previous year to SEK 1.24bn (SEK 1.16bn), assisted by Eurojackpot and continued growth for Triss.
Net gaming revenue for Svenska Spel was capped at 1.96bn (€168m), down one per cent year-over-year (Q1 2023: SEK 1.98bn), which the operator attributes to the restructuring of its casinos.
Sport & Casino revenue amounted to SEK 549m, down three per cent YoY (2023: SEK 565m) after impacts were seen on sports betting margin and pool game outcomes.
Casino Cosmopol & Vegas revenue fell by 32 per cent YoY to SEK 169m (2023: SEK 247m) after the closure of two of its casinos in Malmö and Gothenburg, as well as the reduction in opening hours for its Stockholm casino.
Online revenue improved by six per cent YoY to SEK 1.09bn (SEK 1.03bn), amounting to 56 per cent of the total net gaming revenue.
During the quarter, Svenska Spel reorganised its operations to allow for future investments, which resulted in a reduction of its workforce.
Commenting on the past quarter, Svenska Spel CEO and President Erik Strand said: “We have reorganised, reduced the workforce, and from 1 April have a new organisation in place.
“In this way, we have freed up resources that we can invest in transformation, strengthened gambling responsibility work and growth. These are important investments for long-term sustainable value creation.”
Near the end of the quarter, Svenska Spel Sport & Casino was handed a warning and a SEK 100m penalty fee from the Swedish gaming authority Spelinspektionen for duty of care failures in 2021, a decision which the operator has appealed.
Svenska Spel’s operating profit came in at SEK 310m, down 49 per cent YoY (2023: SEK 612m), with an operating margin of 16 per cent (2023: 31 per cent).
Both figures were negatively impacted by SEK 375m in non-recurring costs, which included the closing of the Malmö and Gothenburg casinos, restructuring costs, as well as a provision for the Spelinspektionen penalty fee.
Excluding non-recurring costs, operating profit was SEK 683m (2023: SEK 612m) with an operating margin of 35 per cent (2023: 31 per cent).
