Svenska Spel announces H1 profit decrease

The Swedish company Svenska Spel said that new regulations in the local market has hit its profits during the first half of the year.

Sweden.- State-owned Svenska Spel has announced its financial results for the first six months of the current year. The Swedish company said that a new wave of regulations in the country has hit its financial performance during H1.

Svenska Spel said that revenue for the six months ended June 30 totalled €389.4 million, which is a 4% year-on-year decrease. The online division, Sport & Casino, was the only one to register revenue growth during the six-month period.

Sport & Casino revenue increased to €94.9 million, which is a 5% increase from the same six month period in 2018. The growth was driven by new horse race betting products, as well as new online casino offering. However, sports betting experienced a decrease in net gaming revenue.

Moreover, Svenska Spel’s lottery division Tur was the biggest source of profits, despite a 3% decrease to €208.7 million. Draw-based games were the most successful vertical and reported a €1.2 million increase in revenues. Land-based operations saw Casino Cosmopol & Vegas’ revenue fall 14% to €80.5 million.

The operator made a balance of the first six months of 2019: “Svenska Spel’s operations have stabilised following the transition to the new gaming market and we see a recovery in customer growth and revenue,” said the operator’s President and Chief Executive Patrik Hofbauer. “The customers we lost at the end of the year as a result of splitting the group into new divisions, and the transition to separate customer accounts for each have found their way back to us. We are happy that customers choose Svenska Spel. They appreciate our products, and it is safe and secure to gamble with us.”