Svenska Spel revenues up 4% as profits slump
Former Swedish monopoly operator describes 2019 as the “most tumultuous in the history of the group”
Svenska Spel has reported net revenue of SEK8,579m (£690m) for full-year 2019, a rise of 4% over 2018, despite regulation and increased competition in Sweden taking their toll on the Visby-based business.
Operating profit was SEK2,466m (£190m) from January to December 2019, a year-on-year (YoY) decrease of SEK2,059m (£160m), of which SEK1,620m (£130m) was attributed to gaming tax.
Group profit slumped by SEK1,807m (£140m) YoY to SEK2,716m (£220m), while net operating margin came in at 29%. With adjustment for tax, operating margin was 48%.
As for Q4 performance, net gaming revenue amounted to SEK2,476m (£190m), while operating profit was SEK775m (£61.8m) and profit was SEK667m (£53.25m).
During Q4, Svenska Spel said its digital arm’s revenue increased by 8% compared to the same quarter last year, while the online business now accounts for 34% of the group revenue.
From 1 January 2019, Sweden re-regulated its gambling market, meaning monopoly operators Svenska Spel and ATG were joined by dozens of Swedish-licensed international betting and gaming brands.
The company blamed 2019’s performance on fierce competition and increased efforts around responsible gambling.
Svenska Spel said Q4 “ends the most tumultuous year in the history of the Group and the gaming industry following the re-regulation of the gaming market”.
Svenska Spel CEO Patrik Hofbauer said: “The Swedish gaming market as a whole has had a negative growth in 2019. Our result for the quarter is therefore in line with expectations even though the ambition ahead is higher.
“The most important thing during the year has been to stabilise the business after the major transition to a new gaming market, which we have now done, which means that we are well equipped for the future.
He continued: “We are entering the new year with an aggressive focus going forward, but with continued concern for our customers.”