Home > Finance > Full year results > Revenue and net profit rise in “satisfactory” year for Danske Spil

Revenue and net profit rise in “satisfactory” year for Danske Spil

| By Robert Fletcher
Danske Spil reported a year-on-year increase in revenue and net profit during 2022 despite having to contend with what the operator described as an “uncertain” backdrop.
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Reflecting on its full-year performance, Danske Spil chief executive Nikolas Lyhne-Knudsen referenced Russia’s invasion of Ukraine, rising inflation and interest rates, the energy crisis and historically low consumer confidence as factors that all impacted the operator in 2022.

However, the group was able to overcome these challenges and record growth, with Lyhne-Knudsen saying he was “satisfied” with this performance, adding that the business was able to fulfil its expectations.

“It is satisfactory, especially because we can at the same time state that our efforts against gambling addiction are working and that the number of customers in Danske Spil with a high risk of developing gambling addiction is continuously being significantly reduced,” Lyhne-Knudsen said.

“Responsible game selection, healthy gambling habits, happy customers and a healthy and profitable business must always go hand in hand in Danske Spil.”

Full year results

Overall gross gaming revenue (GGR) for the 12 months to 31 December 2022 amounted to DKK4.98bn (£592.4m/€668.4m/$708.0m), up 3.0% from DKK4.83bn in the previous financial year and in line with guidance of between DKK4.80bn and DKK5.00bn.

Breaking this down, GGR from Danske Lotteri Spil, the operator’s lottery business reached DKK2.81bn, an increase of 0.7% on the previous year and a new annual record for the group.

Danske Licens Spil, which includes sports betting and online casino, reported DKK1.66bn in GGR for the year, down 8.7% from DKK1.82bn in 2022 due to a decline in sports betting while casino remained flat.

GGR from the operator’s gaming hall business Elite Gaming jumped 44.2% to DKK299.6m as a result of all pandemic-related restrictions being removed from land-based gambling venues in Denmark.

Elsewhere, Danske Klasse-lotteri, the “class lottery” that was integrated into the business in April 2022, generated DKK192.5m in GGR, while revenue from the Swush fantasy sports platform edged up 6.6% to DKK16.1m.

Turning to spending for the year, Danske Spil paid DKK644.7m in state taxes, DKK459.6m in dealer commission and DKK269.6m in other gaming-related costs. This left an operating profit of DKK3.60bn, up 4.0% year-on-year.

Operating expenses amounted to DKK1.33bn and net financial costs were DKK92.5m, which resulted in a pre-tax profit of DKK2.22bn, an increase of 6.9% from 2023. Danske Spil paid DKK490.7m in income tax, meaning it ended the year with a net profit of DKK1.73bn, up 6.2% year-on-year.

In addition, the operator noted that EBITDA for the year increased by 3.7% to DKK2.56bn.

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