Paf to build on 2016 revenue growth with Nordic expansion

Paf plans to extend its Nordic and Baltic footprint later this year, its CEO Christer Fahlstedt has told EGR Intel, as the operator looks to continue its online momentum.

Despite no major investment in Paf.com last year, the operator yesterday reported a 7% year-on-year rise in online revenues to €81.9m in 2016.

And speaking to EGR Intel, Fahlstedt said the firm could enter one regulated market before the year is out, and would “absolutely” apply for a Swedish licence once they become available.

“We only operate in regulated markets,”Fahlstedt said.  “The only market we are presently in that does not have proper regulation in is Sweden.”

However, the chief exec cautioned against thinking new markets would bring immediate joy.

CEO, Christer Fahlstedt

“Just entering markets themselves is not a recipe for success,” Fahlstedt said. “We will be very selective with which markets to approach so there may be one more this year, but that might be it,” he added.

The Aland-based firm’s online arm, which accounts for 75% of the overall business, has progressed steadily under the operator’s new-look management team.

Hahlstedt succeeded former CEO Anders Ingves in June 2016, while Per Sahlberg was taken on as new CFO and former finance chief Johan Rothberg named vice director.

However, Paf recorded a 7% year-on-year fall in group profits in 2016, described as a “transition year” for the business by Fahlstedt, which was partly attributed to the 2015 profit boost following the sale of Lottericentralen AB and Paf Nöjesspel AB for €2.5m.

Fahlstedt also said the firm had been “more conservative in how [it] capitalised development and expenditure” and was “quite happy that we have been able to maintain momentum with revenue growth.”

“We’ve had a bit of extra cost in this transition period so we’re reasonable happy with last year and we’re looking forward to a stronger 2017,” he added.