Svenska Spel revenue jumps 18% in Q2 2021

Svenska Spel has reported an 18% year-on-year increase in net gaming revenue (NGR) for the second quarter of 2021 to SEK1.9bn (£160.2m). Company operating profits rose by 21% annually during Q2 to SEK574m, with operating margin increasing to 30%. Online gaming NGR increased by 35% to SEK999m during Q2, punctuated by a 42% increase in NGR generated from mobile gaming. Online now accounts for 52% of Svenska Spel’s total overall NGR, up from 45% during the same period of 2020. The former Swedish monopoly operator’s Sports and Casino business reported a 106% YoY rise in NGR during Q2 2021, hitting SEK598m, a significant increase due in no small part to the absence of sporting events in the year prior. Lottery-based revenue came in flat at 1% to SEK1.19bn during the quarter, with the firm reporting an increase in digital ticket sales during the period. In line with previous quarters, Svenska Spel’s land-based Casino Cosmopol business experienced a double-digit decline in NGR, with revenue slumping 14% to SEK147m during Q2. At H1 2021 level, Svenska Spel NGR increased by 6% YoY to SEK3.9bn, with the firm citing closures to its land-based portfolio during the Covid-19 pandemic as impacting potential revenue growth. Operating profits fell by SEK3bn to SEK1.1bn, with operating margin decreasing slightly from 32% to 30% during H1 2021. Despite the company’s travails over the previous 15 months, Svenska Spel CEO Patrik Hofbauer cited the potential for the company’s fortunes to rebound following the relaxation of Covid-19 restrictions in Sweden. “We are enjoying a financially strong quarter and have a positive customer development,” said Hofbauer. “Our focus on improving the customer experience yields results. “We have the highest image in the gaming industry and high satisfaction among both customers and employees. Customers choose us because we offer entertaining games in a safe and responsible way. “Now, in addition, all our operations are up and running again when our three Casino Cosmopols opened on 7 July after having been closed for over 15 months,” the Svenska Spel CEO added.