Revenues ease at Svenska Spel in Q3-2018

Sweden’s state-run gambling monopoly Svenska Spel has reported mediocre Q3-2018 results as it approaches a more liberalised online gambling market early next year, posting a 2.3 percent drop in net revenues year-on-year in the quarter to SEK 2.1 billion.

Management attributed the decline mainly to a SEK 56 million, or 20 percent, decrease in the firm’s Vegas VLT’s,

The revenue decline dragged down profits by 2.2 percent y-o-y to SEK 1.1 billion on a 23.1 percent margin.

The report commented on the SEK 29 million expense of new European Union privacy requirements (GDPR) and costs associated with the transformation necessary for the new liberalised market set for opening early next year.

Online sales in Q3 were star performers, rising 22 percent y-o-y, with mobile sales comprising 42 percent

Marie Loob, chief executive officer of the company, said that Svenska Spel remained strong despite strong competitive pressure.

“As the whole of Sweden’s gaming company, we look forward to finally playing on equal terms to the new gaming market after the turn of the year, and to offer games that we and our customers have missed for a long time,” she said.

The company invested SEK 30 million to extend its agreement with the Research Council and continued to support Sweden’s only professor of gaming addiction at Lund University, until 2022.

Loob concluded: “I am proud that approximately five million customers, or 52 percent of the Swedish people, are positive to Svenska Spel. But there is a clear downward trend in the whole game industry’s reputation.

“Our most important industry-wide challenge is to work to enhance image and reputation. Here everyone has to take their responsibility.”