Positive development for Svenska Spel
Thursday, March 14, 2013 at 02:39PM The Svenska Spel group returned a profit after financial items and tax for 2012 of SEK 5,138 million, which is an increase of SEK 132 million (2.6%) compared with 2011.
“We have achieved our best-ever operating profit with a profit margin that is in line with the owner’s target. This increase is primarily the result of strong sales of lottery tickets, number games and sports bets, both through our agents and online. In contrast, Vegas and Casino Cosmopol have lost ground slightly, as a result of the extensive marketing of similar game formats online by unlicensed gambling operators,” says Svenska Spel’s CEO, Lennart Käll.
The Swedish Gaming Board imposed new restrictions on Vegas, which apply from 1 January 2013. The new rules change the conditions for becoming a business partner of Svenska Spel.
In December, Svenska Spel achieved European Lotteries Responsible Gaming Standards certification for the second time.
Svenska Spel’s market share for the fourth quarter is estimated at just over 49%, which is slightly lower than for the whole of 2011. Svenska Spel is increasing its market share in shops, while its market share online continues to fall as a result of rapid growth at unlicensed gambling operators.
We are beginning to see the effects of the cost streamlining programme launched in 2012, especially during the fourth quarter.
Responsible gambling work during 2012 included over 6,300 test purchases from agents and business partners, responsible gambling training for around 4,000 employees at agents and business partners, the launch of mobile phone self-tests and responsible gambling measures targeted at the risk groups of young men and middle-aged women.
The Svea sponsorship initiative was launched during the autumn, with SEK 50 million distributed annually by customers to participation sports. The aim is to achieve a strong link to sport and more responsible gambling as more people register their gambling.
January–December in brief
- The Group’s net gaming revenue increased to SEK 9,815 million (9,687), a rise of 1.3%.
- The Group’s operating profit was SEK 5,083 million (4,940), an increase of 2.9%.
- The Group’s profit was SEK 5,138 million (5,007), an increase of 2.6%.
- The operating margin was 22.0% (21.9%).
Fourth quarter October–December in brief
- The Group’s net gaming revenue increased to SEK 2,707 million (2,689), a rise of 0.6%.
- The Group’s operating profit was SEK 1,439 million (1,356), an increase of 6.1%.
- The Group’s profit was SEK 1,459 million (1,378), an increase of 5.9%.
- The operating margin was 23.0% (21.9%).