Svenska Spel has released its financial results for the third quarter, a period in which increased competition and gaming responsibility had a negative effect on the company’s revenues. The Swedish operator posted a 5% decrease in net gaming revenue to €188.9 million.
Svenska Spel said that net operating margin of 32% was significantly lower than the one from the previous year due to the new gaming tax. With adjustment for game tax, it amounted to 50%.
The operator said that during the third quarter, Svenska Spel saw further stabilising of its business, which registers a continued growth in the digital vertical. Revenues were affected by an increase in competition and responsible gaming measures taken by the company.
President and CEO Patrik Hofbauer explained that the results are not as good as they wish they would be. However, he said that they have an aggressive focus going forward, through investments that contribute to enhanced customer experience and data-driven customer communication, but with continued concern for consumers.
Sports betting and casino
The sport and casino area, both operating online and land-based, was down 2% compared to the same quarter last year. Casino Cosmopol & Vegas decreased by 16%, affected by customers’ move from land-based to online.
“Part of the explanation lies in the changes brought about by the new gaming regulation, especially the national suspension register and deposit limits. These are positive changes as they protect consumers and build a long-term sustainable industry through sound revenue,” says Patrik Hofbauer.
Svenska Spel’s digital business increased by 9% compared to the same quarter last year, with mobile phone sales increasing around 13%. The digital business accounts for 37% of the Group’s net gaming revenue during the quarter.