Lotteries growth pushes revenue and net profit up at Dankse Spil in Q3

Revenue reached DKK3.69bn (£431.6m/€494.4m/$528.7m) during the three months to 30 September. This, Danske Spil says, was 2.4% ahead of DKK3.60bn in Q3 2022.

As was the case in Q1 and Q2, Danske Spil says this growth was due to the ongoing success of its lottery operations.

Danske Lotteri Spil remained the primary source of revenue returning DKK2.07bn, up 3.1% on last year. This, the operator said, was due to better Eurojackpot sales, with larger jackpots and new Tuesday draws.

Revenue from Danske Licens Spil which includes sports betting and online casino, reached DKK1.21bn, down 1.6%. Danske Spil reported improvements in casino activity but a decline in sports betting. The operator also noted the impact of its responsible gambling initiatives such as lower deposit limits.

Danske Klasse-lotteri, the “class lottery” integrated in April 2022, posted DKK183.0m in revenue, up 39.7% from last year. Meanwhile, revenue from Elite Gaming, its gaming hall business, fell 2.7% to DKK217.0m. In addition, the Swush fantasy sports platform reported revenue of DK11.0m, up 10.0%.

Danske Spil expects to hit full-year financial targets

Turning to spending in Q3, one of the main outgoings for Danske Spil was state taxes at DKK477.0m. A further DKK318.0m was attributed to dealer commissions and DKK197.0m other, gambling-related costs.

Danske Spil also noted DKK273.0m in personnel costs, DKK153.0m of depreciation and write-downs and DKK544.0m in other external expenses.

After also accounting for an additional DKK26.0m in other income and DKK7.0m of financial income, this left a pre-tax profit of DKK1.76bn. Danske Spil says this was 8.6% higher than Q3 last year.

The operator paid DKK387.0m in tax, meaning it ended Q3 with a net profit of DKK1.37bn, up 8.5%. 

Looking to the full year, Danske Spil says guidance remains unchanged. This means revenue should amount to between DKK5.0bn and DKK5.2bn in the 12 months to 31 December. Net profit is also expected to be in a range of DKK1.7bn to DKK1.8bn.