The third quarter of the year was characterized by an increase in profits for the Svenska Spel Group and a sustainable gaming revenue share reaching an all-time high. However, earnings continue to be negatively impacted by challenges to Casino Cosmopol and Las Vegas slot machines. The biggest news about the game is the launch of Supportern, a new digital lottery together with Swedish sports
"In a period of zero growth, revenues in two out of three business areas grew in the third quarter. Our customer base is growing and revenue share is increasing, so we have more customers who also play more sustainably. We have increased earnings, a consistently high level of customer satisfaction, as well as high availability of our services", he claims Patrick Hofbauer, President and CEO of Svenska Spel.
The Group's net gaming revenue for the quarter was SEK 1.965 million (1.954), up slightly from the same quarter last year. Operating profit of SEK 686 million (681) increased by 1% despite the negative impact on the operating profit of the Casino Cosmopol & Vegas business area, which decreased by SEK 22 million. The operating margin was 35% (35). The Group's online business continues to grow. This quarter increased by 6% compared to the same quarter last year and online accounted for 53% (50) of the Group's revenue in the quarter.
Net gaming revenues for the Sports & Casino business area increased by 4% compared to the same quarter last year. It is driven by a continued increase in active customers, the success of new poker launches and the growth of online casinos.
The Luck business area increased net gaming revenues by 2% compared to the corresponding quarter last year. It is the Eurojackpot that drives revenue during the quarter.
For the Casino Cosmopol & Vegas business area, net gaming revenues decreased by 11%. Operating profit of -SEK35 million decreased by SEK22 million compared to the same quarter last year. This is due to several factors that together result in fewer visitors and less revenue. The biggest impact comes from increased competition from online gambling and restaurant casinos, as well as from strengthening due diligence and anti-money laundering measures. The shopping area is now responding to this with an adjustment of its operations, where the Cosmopol Casino has new opening hours from 1 October to be open when guests want to visit the Cosmopol Casino. Other examples include changes to restaurants and events to achieve synergies.
The biggest news of the quarter is the Supportern numbers game. It was launched together with 27 ice hockey clubs from the SHL, SDHL and Hockeyallsvenskan to coincide with the first season of the hockey leagues. The game was developed at the request of Swedish Ice Hockey and it is the affiliated clubs that produce the rounds in the digital numbers game. One of the advantages for clubs is that matches can be offered both home, away and away. The hope is that Supporter can be rolled out to more clubs and sports in the long term.
During the quarter, Svenska Spel distributed 45 million prizes in number games and lottery tickets with a total value of more than SEK 147 million. The highest prize was a Triss Monthly Clover of 100.000 SEK per month for 20 years, for a total of 24 million SEK. Sports and casino games generated 20 million wins during the quarter, including eleven million wins on Stryktipset, the largest with a profit of 14 million SEK.
During the quarter, healthy revenue share reached its highest level ever and the number of sustainable customers increased compared to the same quarter last year. This is an important confirmation that responsible gaming measures are having the desired positive effect. The Group's focus on sustainable gaming continues through its ongoing responsible gaming development work on a daily basis in everything from Spelkolls technology to curation conversations.
In the field of sports sponsorship, Svenska Spel has awarded 50 new elite sports scholarships worth 50.000 SEK each. Fellows are active in 40 different sports and the supplement gives them a better opportunity to combine elite-level sport with higher studies.
Third quarter summary
- Net gaming revenues for the Group amounted to SEK 1.965 million (1.954), an increase of SEK 11 million or 1%.
- The online sales channel increased by 6%.
- Healthy revenue share is at an all-time high and the number of sustainable customers is up compared to the same quarter last year.
- The Group's operating profit amounted to SEK 686 million (681), an increase of SEK 5 million or 1%.
- Operating margin was 35% (35).
- Group profit was SEK 578 million (544), an increase of SEK 33 million or 6%.
- The Cosmopol and Las Vegas casino business area is facing challenges with profitability and a warning has been given for casino operations.
- The image rating was 50% (49) and remains the highest among gaming companies.
- Tur launched Supportern, a digital lottery for Swedish sports associations.
- 50 new elite sports scholarships for more opportunities to combine elite sports with post-secondary studies.
Summary of the January-September period
- Net gaming revenues for the Group amounted to SEK 5.908 million (5.852), an increase of SEK 56 million or 1%.
- The online sales channel increased by 8%.
- The Group's operating profit amounted to SEK 1.847 million (1.808), an increase of SEK 40 million or 2%.
- Operating margin was 31% (31).
- Group profit was SEK 1.558 million (1.436), an increase of SEK 122 million or 9%.
- Svenska Spel is an industry leader in the Sustainable Brand Index as the most sustainable gaming company.
- Sport & Casino has launched a new poker platform with a larger selection of games and Momang – a new online casino.
- We launched Keno Winner Weeks and improved the customer experience with the ability to correct tickets at the checkout at our agents.
