Casino closures leads to 8% Q3 revenue drop for Svenska Spel

By Iqbal Johal

Svenska Spel has reported a revenue drop of 8% year-on-year for Q3 2020, with the casino closures brought about by the coronavirus pandemic having a “major impact.”

The Swedish operator’s net gaming revenues for the period decreased to SEK 1.85bn ($211.2m), while operating profit fell 17% down to SEK 531m.

The Swedish state-owned operator pointed to its Casino Cosmopol venues remaining shut as a reason for reduced revenue, with its Casino Cosmopol and Vegas business revenues decreasing by 59% to SEK 177m.

Despite measures introduced from July by the government including the SEK 5,000 weekly deposit limit, the return of live sport led to its sport and casino business revenue increasing by 7% to SEK 490m.

Year-to-date from January to September, net gaming revenue fell by 9% to SEK 5.55bn, although operating profit increased 8% up to SEK 1.71bn.

Svenska Spel president and CEO Patrik Hofbauer, said: “We have good profitability and revenues are increasing for two of our three business areas. 

“Our sports games are going really well and we are also increasing revenues from number games and lotteries. 

“The fact that the group's total revenues are declining is due to the fact that our physical casinos have been closed throughout the quarter.”

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