PAF slips in full year 2014 results

Åland-based gaming company Paf reported profit of Euro 17.2 million at the end of its 2014 financial year, down 45 percent compared to 2013.

“Compared with the previous two financial years, 2014 was a weaker year. Profits were negatively affected by targeted major investments in areas such as marketing and by external factors such as ships changing flag, decisions by authorities, the general economic situation and stiffening international competition,” commented Anders Ingves, chief executive officer for Paf.

Key performance indicators versus full year 2013 include:

Group revenue slipped 9 percent to Euro 98.1 million.
Revenue from gaming on paf.com amounted to Euro 65.3 million, down 11 percent.
Revenue from land- and ship-based gaming amounted to Euro 32.8 million, a decrease of 5 percent.
Total profit decreased from Euro 31.4 million to Euro 17.2 million, a decrease of 45 percent.
Group operating profit decreased from Euro 30.9 million to Euro 16.8 million. The operating margin was 17.1 percent.

“In the short term, investments in responsible gaming have had and are continuing to have a negative impact on revenue and profit, but in the slightly longer term safer gaming is expected to result in customers wanting to play with us, leading to improved profits,” Ingves said.

As last year, a dividend of Euro 21 million is proposed. In addition to the profits that Paf allocates as a dividend, the Åland provincial government will receive Euro 10 million in repaid gaming tax arrears from the Finnish state.

“We are not satisfied with this performance in terms of either revenue or profit, and we are going into 2015 with the aim of finding and implementing measures to restore growth to Paf,” Ingves concluded.

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