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Svenska Spel states that it has achieved the ‘reorganisation objectives’ to lower group costs and improve operating margin, of the business units of Sweden’s state-owned gambling monopoly.
Filing its H1 interim report, Svenska Spel issued its first corporate update under the leadership of new Group CEO Anna Johnson, who stated: “We have carried out a review of organisation, working methods and costs. We have subsequently carried out a reorganisation of Svenska Spel with a new organisation in place from 1 April.”
H1 trading saw Svenska Spel shut down its loss-making Casino Cosmopol venues in the cities of Gothenburg and Malmö, a decision taken as part of a strategic review of the firm’s land-based operations and cost controls.
The restructuring of the Cosmopol unit saw Svenska Spel Q2 revenues stand at SEK 1.87bn, registering a 4% decline on 2023 comparatives of SEK 1.96bn. As it stands, the Cosmopol unit maintains one casino property operating in Stockholm, as the unit reduces its Q2 revenues to SEK 35m (€3m).
On a year-to-date basis, Svenska Spel tracks net gaming revenues of SEK 3.8bn, down 3% on 2023 results of SEK 3.94bn, primarily reflecting land-based reorganisational changes applied during H1 trading.
Despite a decline in headline revenues, the management of Svenska Spel underlined improved H1 online sales generating SEK 2.19bn (+7%) of group income.
Further positives aligned with management’s reorganisation objectives, saw Svenska Spel generate Q2 operating profits of SEK 640m, up 17% on 2022 results of SEK 550m, as group operating margin returned stood at 34%.
YTD results saw Svenska Spel operating profit stand at SEK 950m, representing a decrease of SEK 211m or 18% decline on 2022 results of SEK 1.1bn. The decline was reflected by non-recurring costs of approximately SEK 375m, related to the cost of Cosmopol closures.
H1 trading saw Svenska Spel launch its new online sports betting platform, in partnership with new technology supplier Kambi Group to overhaul the sportsbook offering its flagship Oddset brand.
H2 trading will see Svenska Spel continue to advance its reorganisational changes to deliver new investment opportunities, in which CEO Anna Johnson concluded: “The closure of our casinos in Malmö and Gothenburg has led to lower costs, an improved result and strengthened operating margin during the second quarter.
It gives us an opportunity to invest in transformation, strengthened gambling responsibility work and investments that create growth.”
