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Sweden’s state-owned operator Svenska Spel has reported a minor 4% decrease YoY in quarterly revenue as it kicks off FY2025.
January-March net gaming revenue was capped at SEK 1.876m (£147k), constituting a slight difference when compared to the first three years of the previous year (SEK 1.956m).
While minuscule on the outside, Svenska Spel attributed the decline to a major development for Sweden’s land-based industry. This of course refers to the operator’s brick-and-morter Casino Cosmopol properties.
In 2024, there were three operating venues in total for almost two full months at the start of the year, before the Cosmopols in Gothenburg and Malmö officially closed down on 24 February.
There is now only the venue in Stockholm left, but that too will soon have its fate sealed by the end of this year.
Regardless, the fact that there is only a 4% drop in net gaming revenue even after the above developments shows that Svenska Spel possesses a level of resilience to sustain operations even in the face of adversity.
This was further evidenced in the quarterly report, with the total operating profit for the first three months amounting to SEK 609m (Q1 ’24: SEK 310m) – a YoY increase of SEK 299m.
Again, the closing of the physical venues had a direct impact on this, as Svenska Spel alleviated itself of “significant non-recurring costs” by shedding off the dead weight.
Svenska Spel’s lottery segment saw a 1% drop YoY in net gaming revenue (SEK 1.224m) when pitted against the SEK 1.238m in Q1 ’24. This was mainly due to this year’s Easter holidays, which usually affects lottery operations.
However, expectations are that numbers will ramp up again in the coming months thanks to Svenska Spel’s new lottery product, Lyckoplatsen, which was launched in the first quarter.
Sport and Casino was up SEK 2m YoY (Q1 ‘24: SEK 549m), led by a strong quarterly performance from Svenska Spel’s own Betbuilder tool, Oddset.
Online brought a total of SEK 1.167m for the period between January and March, up 7% YoY or SEK 75m compared to the previous corresponding period.
The online vertical was the best performing for the operator, accounting for 62% of total sales. Mobile was responsible for 53% of those 62%, signifying a trend among consumers towards digital offerings, something seen across various other markets.
Lastly, looking at land-based data, Stockholm’s Casino Cosmopol brought net gaming revenue of SEK 26m – down 61% YoY or SEK 42m. Sweden’s Parliament gathered on 2 April to order the removal of the venue from Svenska Spel’s hands by 1 January 2026.
Anna Johnson, President and CEO of Svenska Spel, commented: “Through last year’s major changes, including reorganization, we have created space for investments in our focus areas – growth, sustainable gaming and transformation.
“The fact that we have space for investments is also a confirmation that we are doing the right things and part of our strategy to create long-term sustainable value.”
