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Net profit edges up despite 1.3% revenue dip at Svenska Spel

| By Robert Fletcher
Svenska Spel reported a small year-on-year increase in net profit for its 2022 financial year despite a 1.2% decline in revenue, while the operator is also set to propose an SEK2.00bn (£159.0m/€179.6m/$193.5m) dividend.
Patrik Hofbauer

Revenue for the year reached SEK8.04bn, down from SEK8.14bn in the previous financial year, with a mixed set of results for its operating divisions.

The Tur lottery division remained by far the operator’s primary source of revenue, with this area of the business generating SEK4.90bn in revenue in 2022, a 0.4% drop from 2021. This was put down to the change in customers’ purchasing habits in retail.

Revenue from the Sport & Casino arm reached SEK2.07bn, down 12.2% year-on-year as a result of new responsible gambling measures, cancelled sports events at the start of the year and a limited range of pool games during the Fifa World Cup, which switched from its traditional summer date to the winter for 2022. 

In contrast, the Casino Cosmopol and Vegas business experienced a 22.8% rise in revenue from SEK872.0m to SEK1.07bn. Svenska Spel said this was due to the removal of all pandemic-related restrictions on retail venues, with its facilities having been forced to close in the first half of 2021 in line with national measures.

Some SEK3.92bn in revenue came from online, with SEK3.01bn generated by the operator’s agent network, SEK537.0m restaurants and bingo halls and SEK534.0m land-based casinos.

Turning to spending, gaming tax expenses reached SEK1.55bn and revenue costs reached SEK1.03bn. In terms of operating expenses, personnel costs totalled SEK1.13bn, other external costs were SEK1.91bn and depreciation and impairment of intangible and tangible fixed assets SEK337.0m.

After accounting for SEK128.0m in finance-related income, this left a pre-tax profit for the year of SEK2.52bn, up 1.9% from SEK2.47bn in 2021. Svenska Spel paid SEK521.0m in tax, leaving a net profit of SEK1.995bn, a slight increase from SEK1.957bn in the previous year.

Based on this performance, Svenska Spel’s board proposed a dividend of SEK2.00bn, with this now set to be put forward for approval.

“That our surplus goes back to the Swedish people is one of the reasons why we are all of Sweden’s gaming company,” Svenska Spel chief executive Patrik Hofbauer said. “During the 25 years that Svenska Spel has existed, together with our customers, we have contributed over SEK100.00bn to the state treasury.

“During 2023, we will continue to offer our customers fun and exciting game experiences and we will also continue to contribute to a better society. It should always be fun, easy and safe to play with us at Svenska Spel.”

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