Svenska Spel records Q2 revenue increase as Sport & Casino NGR doubles

| By Nosa Omoigui
Swedish operator Svenska Spel has posted revenue figures of SEK1.94bn (£163.6m/€189.2m/$222.8m) for the second quarter of 2021, representing an 18.0% increase on the same period last year.
Svenska Spel records Q2 revenue increase

Out of this SEK1.94bn, lottery division Tur was the biggest contributor drawing in SEK1.19bn, up 0.8%. This was followed by betting and gaming brand Sport and Casino which generated SEK598m, and experienced the most growth, up 105.5%. Slot hall division Vegas and the land-based Casino Cosmopol, which re-opened on 7 July after a 15 month closure, brought in SEK147m of revenue, down 13.5%.

These figures came on stakes of SEK4.83bn, up 37.2% as players won SEK2.89bn, a 53.7% growth.

The return of sports matches in 2021 compared to Q2 2020 contributed to the increased numbers this time around, particularly major sporting tournaments such as football’s European Championships.

Costs increased along with profits however. Gambling taxes cost the company SEK364m, up from SEK283m for the same period in 2020. Gambling business costs rose to SEK270m. This led to net sales of SEK1.35bn, a 12.3% increase.

Other external expenses amounted to SEK422m, up 16.9%. Personnel costs did decrease from last year, however, dropping to SEK268m, down 6.3%. Depreciation of fixed assets also cost the company SEK91m, slightly less than in 2020.

As a result, operating profit increased 21.4% to SEK574m compared to last year, resulting in an operating margin of 30%.

After factoring in taxes, interest and other financial expenses (which came to SEK122m), net profit for Q2 totaled SEK453m – an increase of 33.2% from last year.

Svenska Spel CEO and president Patrik Hofbauer said: “We are making a financially strong quarter and have a positive customer development. Our focus on improving the customer experience yields results. 

“We have the highest image in the gaming industry and high satisfaction among both customers and employees. Customers choose us because we offer entertaining games in a safe and responsible way.”

For the first half of the year, gaming revenue for the company stands at SEK3.94bn – up from SEK3.70bn for the corresponding period in 2020. Operating profit has reached SEK1.17bn, while net profits stand at SEK929m.

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