Svenska Spel revenue drops 8% in Q3 as Covid-19 closures bite

Svenska Spel has reported an 8% year-on-year decline in net gaming revenue (NGR) for Q3 2020, as the operator continues to feel the pinch of Covid-19 on its land-based business. Overall NGR for the period declined to SEK1.8bn (£161m) amid a 17% drop in operating profit to SEK531m. However, NGR excluding land-based casino operations rose by 5% in Q3 compared to the same period last year. Svenska Spel’s sport and casino business reported the biggest increase in Q3, with revenue from the division rising 6% annually to SEK490m. The group’s lottery-based business also grew, rising 5% to SEK1.2bn in the quarter. The biggest Q3 decline came in Svenska Spel’s Casino Cosmopol and Vegas business, which operates the group’s land-based casinos and retail outlets. NGR for the period plummeted by 58% year-on-year to SEK177m. During the quarter, the Svenska Spel board confirmed it would close its flagship Casino Cosmopol property in Sundsvall, resulting in a non-recurring cost of SEK81m for the business. Most of the operator’s land-based business has been closed during the coronavirus pandemic, despite there being no national lockdown in Sweden. Svenska Spel launched a new horseracing betting offering in Q3 in partnership with French operator PMU, a move which allows the firm to offer betting on French racing as well as international events. The operator has highlighted this product and a new variant of its Triss lottery scratchcard product BilTriss, which gives players the chance to win a Tesla car, as exceeding expectations and proving popular with players. “We have good profitability and revenue are increasing for two of our three business areas,” said Svenska Spel CEO Patrik Hofbauer. “Our sports games are going really well and we are also increasing revenue from number games and lotteries. “The fact that the group’s total revenue are declining is due to the fact that our physical casinos have been closed throughout the quarter. Despite this, we have good profitability for the group as a whole, which shows strength and stability,” he added.