In its trading update for the three months leading up to September 30, 2023, Svenska Spel reported a 1% year-on-year increase in Q3 revenue, reaching SEK1.97bn ($177m/€167m/£145m). This growth aligns with the current state of the Swedish market, which halted its growth in H1 for the first time since mid-2020.
Net gaming revenue for Tur, Svenska Spel’s lottery division and largest business sector, increased by 2% year-on-year, reaching SEK1.2bn. This growth can be attributed to the success of the Eurojackpot game. The Sport & Casino segment experienced the highest percentage rise, with a 4% year-on-year increase to SEK510m. This growth is a result of a continual increase in active customers, the successful launch of new poker games, and growth in the online casino sector.
However, the Casino Cosmopol and Vegas business areas saw a decrease in net gaming revenue by 11% to SEK247m. Svenska Spel identified increased competition from online games and restaurant casinos as the primary commercial challenge for these casino and slots brands. In response, the company has adapted its business practices, including new opening times at Casino Cosmopol properties starting from October.
Online net gaming revenue increased by 6% to SEK1.0bn and now constitutes 53% of the total business, with 44% occurring via mobile platforms. Despite a SEK35m loss for Casino Cosmopol and Vegas, the overall operating profit for the third quarter rose by 1% year-on-year, reaching SEK686m. It should be noted that the loss experienced by Casino Cosmopol and Vegas in Q3 2023 was SEK22m greater than Q3 2022, owing to reduced income and increased costs associated with social responsibility and anti-money laundering measures.
Patrik Hofbauer, Svenska Spel’s president and chief executive, commented: “In a time of zero growth, revenues for two out of three business areas grew during the third quarter. Our customer base is expanding, and the share of sustainable revenue is increasing, indicating that we have gained more customers who engage in sustainable play. We have achieved improved results, maintained high customer satisfaction, and ensured high service availability.”
Hofbauer recently announced that he would be departing Svenska Spel in early 2024 to assume the role of president and CEO at Swedish telecommunications company Telia Company. According to Spelinspektionen figures, the Swedish market witnessed a 1% decrease in gross gambling revenue during the three months leading up to June 30. Commercial online gambling and sports betting, lottery, slots, and land-based commercial gaming all experienced declines during this period.
