Revenue and profit down at Danske Spil amid Covid-19 impact

| By Robert Fletcher
Danish gaming operator Danske Spil has reported a 7.0% year-on-year decrease in gross gaming revenue (GGR) for its third quarter, due to the impact of the novel coronavirus (Covid-19) on its land-based outlets.

GGR for the three months through to 30 September amounted to DKK3.44bn (£417.4m/€461.5m/$548.4m), down from DKK3.69bn in the same period last year.

Lottery games GGR increased by 2.8% year-on-year to DKK1.92bn, with the operator saying the Danske Lotteri Spil division was helped by large jackpots on offer during the period.

However, the impact of the Covid-19 crisis led to declines in other areas of the business, which in turn resulted in an overall drop in GGR.

GGR from the online betting and gaming division Danske Licens Spil was down 14.0% to DKK1.33bn, while GGR from the Elite Gaming gaming hall arm dropped 32.5% to DKK188.3m.

Revenue from the Swush fantasy sports operation also fell 37.5% to DKK5.5m.

Danske Spil paid DKK359.9m in state tax during Q3, as well as DKK417.6m in dealer commission and DKK193.6 in other game-related costs, which left a gross profit of DKK2.47bn, down 0.8% from last year.

Other external costs reached DKK508.2m, while staff spending in Q3 amounted to DKK211.m and depreciation and write-downs DKK238.7m. As such, profit before financial items was DKK1.53bn, a drop of 21.1% on the previous year.

Financial costs amounted to DKK29.7, resulting in a profit before tax that totalled DKK1.50bn, down 22.3% from DKK1.93bn in 2019. Danske Spil paid DKK330.8m in tax, which left it with a DKK1.17bn profit for the quarter, a fall of 28.2% on last year.

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