Paf revenues dented by responsible gambling investments

Paf CEO Anders Ingves said recent investments into new social responsibility measures and increased marketing investment were to blame for a 45% drop in 2014 profits, in its annual results announcement this morning.

Revenues from Paf.com fell 11% to €73m for the 12 months ended 31 December 2014, while the company’s group revenues – which includes its land-based division – declined 9% year-on-year.

The Åland-based gaming firm recorded a profit of €31.4m for the full-year period, down 45% compared to the previous year, which the operator also attributed to increased marketing investment and international competition.

Chief executive Ingves said he was unhappy with the results but remained confident the social responsibility investments would pay dividends in the longer-term.

“We are not satisfied with this performance in terms of either revenue or profit, and we are going into 2015 with the aim of finding and implementing measure to restore growth to Paf,” Ingves said.

“In the short term, investments in responsible gaming have had and are continuing to have a negative impact on revenue and profit, but in the slightly longer term safer gaming is expected to result in customers wanting to play with us, leading to improved profits,” he added.

In December the operator entered the Italian online gambling market for the first time following its acquisition of Milan-based gaming operator Winga which now operates as a wholly owned subsidiary of the Paf group.

Paf was also the recipient of the award for most Socially Responsible Operator at the eGaming Review Operator Awards in November.