Mixed Q2-2018 results for Svenska Spel

The Swedish gambling monopoly Svenska Spel posted a mixed set of Q2-2018 results Thursday, reporting that online gambling revenue rose 20 percent year-on-year to SEK 621 million, with mobile activity contributing growth of 42 percent of revenue.

Whilst digital operations performed well, the overall NGR of the group was disappointing, falling 3.9 percent y-o-y to SEK 2082 million following a serious 24 percent decline in gambling machine contribution.

Group operating profit fell 11.4 percent to SEK 975 million with a margin of 19.1 percent.

The company reported lottery revenue flat, and land revenues struggling as players increasingly move their gambling online. The company does not seem to have enjoyed the World Cup football boost experienced by other international betting companies.

Svenska Spel has had the advantage of a largely state-protected market in the past, but that will come to an end when new gambling laws come into effect early next year liberalising the market and increasing competitive pressure.

That said, Svensha Spel will be able to realise its ambition to offer online casino and live dealer action, and has already engaged with SG Digital and Evolution in these verticals (see previous reports).

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