Svenska Spel NGR remains flat as land-based revenue soars 95%

Svenska Spel CEO Patrik Hofbauer has praised the “positive development” of responsible gaming measures during H1 2022 as net gambling revenue (NGR) for the second quarter edged up 1% on Q2 2021 to SEK1.96bn (£157.4m). The slight increase from SEK194bn pertains to the fact that the group’s casino operations were closed during the second quarter of 2021. Operating profit for Q2 2022 was down 7% year-on-year (YoY) from SEK574m to SEK531m, due to higher costs attributed to investments in product and tech. Operating margin at the state-owned lottery, gaming and sports betting operator fell from 30% to 27%. The minimum annual threshold the company is expected to achieve by the Swedish government is 30%. Hofbauer has highlighted a shift towards “healthy income” and has put that down to “strengthened gaming responsibility measures”. He added: “We continue to provide our customers with entertaining gaming experiences in a responsible way, as we want gaming to be a joy for everyone.” In terms of verticals, the sport and casino division NGR declined by 19% YoY. The former monopoly operator pointed to its responsible gambling implementations having “the intended positive effect”. Also, Q2 2021 saw the hosting of the delayed Euro 2020. During the quarter, the sport and casino division signed a three-year deal with Svensk Travsport to develop its Swedish trotting offering to customers. Tur (lottery and gaming), which accounted for 61% of all business in the quarter, recorded NGR of SEK1.19bn, the same as the corresponding period in 2021. Land-based casino NGR rocketed 95% to SEK286m due to the fact that during Q2 2021 Svenska Spel’s three Casino Cosmopol sites were closed as a result of Covid-19 restrictions. For the group, online transactions were down YoY by 5% and accounted for 48% of all business, a slide from 52%. For the period January to June, group NGR was down 1% YoY at SEK3.9bn from SEK3.94bn.