Svenska Spel reports first quarter results

Swedish state-controlled gaming operator Svenska Spel delivered its first quarter results for the January 1, to March 31, 2013 period this week, showing a disappointing decline in its online division attributed to customers playing on unlicenced foreign operations.

Key performance indicators include:

•   Net gaming revenue for the group rose to SEK 2,480 million (Q1/2012: SEK 2,460 million), an increase of 0.8 percent.

•   Operating profit for the Group of SEK 1,326 million (Q1/2012: SEK1,251 million), an increase of 5.9 percent.

•   Quarterly profit for the Group was SEK 1,341 million (Q1/2012: SEK 1,283 million), an increase of 4.5 percent.

•   Group operating margin was 22.8 percent (Q1/2012: 21.7 percent).

•   Online net gaming revenue of SEK 58 million, down 11.3 percent from the same period in 2012.

Lennart Käll, President and chief executive officer of Svenska Spel concluded that amongst other worrying trends, Sweden’s gambling advertising for the entire gambling market increased to SEK 2 Billion gross equating to more than Denmark, Finland and Norway’s spend combined, enticing customers to play on foreign, unlicenced websites.

Käll further believes current regulation doesn’t work as it was intended, that the regulator lacks sufficient sanctions and violations on the ban of promoting gambling continues unabated.

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