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Lottery growth drives revenue up at Danske Spil in Q1

| By Robert Fletcher
Denmark’s Danske Spil reported a year-on-year increase in revenue and net profit for the first quarter, driven by growth within its lottery operator business.
Flutter Q1

Total revenue for the group in the three months to 31 March amounted to DKK1.22bn (£139.9m/€163.3m/$177.1m). This was up 8.4% from DKK1.12bn in the same period last year.

Breaking this down, Danske Lotteri Spil generated DKK678m in revenue, an increase of 6.4% year-on-year. The group said this was driven by the Eurojackpot game and the introduction of the Tuesday draw in March 2022.

Danske Licens Spil, which includes sports betting and online casino, posted DKK397m, down 6.2%. This, the operator said, was due to increased competition and its responsible gambling initiatives such as lower deposit limits.

Revenue from Elite Gaming, its gaming hall business, reached DKK76m, a year-on-year rise of 24.6%. This was partly due to the fact that some halls were closed for part of January in Q1 of last year.

Danske Klasse-lotteri, the “class lottery” that was integrated into the business in April 2022, generated DKK64m in revenue. In addition, the group noted DKK2m in revenue from the Swush fantasy sports platform, level with the previous year.

Profit growth

In terms of costs for Q1, Danske Spil paid DKK158m in state taxes, DKK110m in total dealer commission and DKK62m in other gaming-related costs. As such, the group was left with an operating profit of DKK887m, up 10.2% year-on-year.

Other spend included DKK93m in personnel costs, DKK167m in other external costs and DK51m in depreciation and write-downs. The group also noted DKK9m in other income and DKK3m worth of financial income.

This left a pre-tax profit of DKK588m, up 17.1% from the previous year. The operator paid DKK129m in income tax, meaning it ended Q1 with a net profit of DKK459, a rise of 17.1%. 

Looking ahead to the full year, Danske Spil said it still expects to perform in line with initial forecasts. These include posting revenue of between DKK5.00bn and DKK5.20bn and net profit in the range of DKK1.70bn to DKK1.8bn.

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