Online growth pushes Paf to record revenue in 2024

Nordic-facing operator Paf reported record revenue during its 2024 financial year, driven by growth within its online gambling business, although earnings were slightly lower year-on-year due to higher tax rates.

Group revenue for the year ended 31 December 2024 hit €183.0 million ($207.4 million), Paf revealed in its full-year report. This surpassed €177.1 million in the previous year – the group’s existing record – by 3.3%.

Online revenue tops €161.2 million

Growth was apparent across both its online and land and ship segments in 2024. Online revenue for the year hit €161.2 million. This beat the previous year by 4.8%, with slots and sports betting the best performing verticals, Paf said.

Growth came on the back of a record number of registered customers. For 2024, customer numbers reached 685,406, up 11.4% year-on-year. Paf said it expects active customer numbers to continue to grow in 2025 through effective marketing strategies and further technology developments.

As for the land and sea segment, covering arcades and gaming operations on cruise ships and ferries, revenue fell 6.4% to €21.8 million. This was blamed on the negative impact of higher tax rates, with increased lottery tax in Finland – which grew to 12% of revenue – seeing Paf’s payments rise from €1.3 million to €2.7 million.

However, the group noted several “positive trends” within the division. This included a 2.0% rise in passenger numbers, while partner satisfaction reached its highest level to date.

Tax changes hit Paf

While revenue grew, Paf saw net profit for the year slip on the back of increased tax rates in certain markets.

The group paid €11.8 million more in taxes in 2024 than in the previous year. Alongside Finland’s lottery tax hike, Sweden increased duties to 22%, Estonia to 6% and Latvia to 12%. These increases had a negative impact on Paf’s bottom line.

CEO Christer Fahlstedt was undeterred by the higher tax rates. He said this is something the business is able to deal with in the long term, as gambling operators should be taxed for them to contribute to society.

“We had a strong 2024 and we can be really pleased with the year,” Fahlstedt said. “The trend of increased gambling taxes is bringing down earnings, but this was something we were prepared for.

“Paf is well equipped to handle tax increases thanks to our customer base, which generates long-term income from a large number of players who play for smaller amounts. Taxes on gaming companies are necessary, so that other gaming companies also can contribute back to society.”

Paf net profit down 1.5%

In terms of spending, material and services costs were higher but some savings were made on staffing. Deprecation and amortisation expenses were higher, as were other operating costs.

After financial costs, pre-tax profit for the year was €59.0 million, down 1.7%. Paf paid €5.7 million in tax and also accounted for €1.0 million in deferred taxes.

As such, it was left with a net profit of €54.3 million, a 1.5% drop from the previous year.

Fahlstedt: Paf taking a ‘sustainable’ approach to growth

Paf said that despite lower net profit, it committed the same amount of funds to society. In total, it distributed €21.5 million for use across areas such as social activities, culture, youth work, sports and environmental activities.

Paf Chairman Mikael von Schantz said: “The level of Paf funds that can be maintained year after year, combined with the voluntary measures taken in relation to responsible gaming towards customers, is impressive. There is no other company in the industry that is currently achieving anything similar.”

Also in relation to responsible gambling, the group in March again amended its player loss limits. Players aged 25 and over can now only lose €16,000 within a 12-month period, reduced from the €17,500 limit.

Users aged between 20 and 24 face a new €6,000 a year loss limit, down from the €8,000 enforced in 2024. However, the existing €1,800 limit will remain in place for the youngest group of players – those aged 18 and 19.

“We want to be a sustainable entertainment company,” Fahlstedt said. “Our results show that it is possible to achieve strong results without compromising on responsible gaming.”

Fahlstedt added that he was “surprised” and a “little disappointed” that state-owned rival operator Veikkaus recently elected to increase its loss limits. He said: “We are going our own way and they are going in a different direction.”