Danske Spil profits slide on major IT investment
Full-year group EBITDA down 5%, although firm still exceeds 2017 financial expectations
Danish monopoly operator Danske Spil has reported a 5% year-on-year fall in group EBITDA to DKK 2.1bn (£254m) due to a rise in staff costs and major IT investments.
The operator recorded flat revenues of DKK 4.9bn (£583.5m) for 2017 following a year of investment and product improvements.
In Danske Spil’s full-year results, CEO Susanne Mørch Koch said its IT investments would drive future growth in the group.
Mørch Koch also said the operator has exceeded financial expectations outlined in its 2016 annual report, despite lower profit margins.
“We have implemented a number of investment IT and customer-oriented initiatives that equip us for the future,” she added.
“Some of the investments we have made during the year have already yielded a return, and several brands have succeeded in taking market share within the liberalised market.”
A number of product updates were carried out in 2017 including a new sportsbook feature to enable users to stream up to six sports matches on the app in real-time.
Elsewhere, the firm’s lottery arm rolled out a new app offering players a new voice recognition solution and an omni-channel feature with the ability to scan physical lottery tickets.
Danske Spil donated DKK 2.7m (£321,504) of its profits to local causes in 2017.