Key points:
- Strengthened responsible gaming measures have impacted some business segment's revenue in Q4
- The Gambling tax increase in Sweden is said to have had a negative impact on full-year operating profit
Svenska Spel has reported its financial results for the fourth quarter of 2024, as well as the entirety of the year.
Q4 2024
In the fourth quarter of 2024, Svenska Spel’s total net gaming revenue reached SEK 2.13bn ($0.20bn), representing a marginal increase of 0.2% year-on-year.
Looking at the individual segments of the business, only Tur saw a rise in net gaming revenue compared to the same period last year, up 6.8% to SEK 1.44bn. Sport and casino was only down by 0.3% to SEK 574m, while Vegas dropped 24.1% to SEK 82m.
The operator has said that sport and casino and Vegas’ net gaming revenue has been impacted by strengthened responsible gaming measures, as well as the challenging economic situation for business partners.
Casino Cosmopol saw a decline of 65.9% to SEK 31m. But, this has of course been greatly affected by the fact that it only had one casino opened during the quarter, compared to three casinos in the corresponding quarter a year earlier.
Thanks to lower operating expenses, operating profit saw growth from SEK 485m in Q4 2023 to SEK 535m in Q4 2024.
The operator also underlined that its sponsorship initiative, Gräsroten, distributed SEK 35m to help support youth sports and club life during the quarter.
FY24
Looking at the full year, net gaming revenue decreased by 3.6% to SEK 7.74bn.
Tur was the only business segment to report growth in FY24, with its net gaming revenue increasing by 4.3% to SEK 5.14bn, a record total for the business area. It also reflects growth for four consecutive quarters.
Looking at the other business areas, Casino Cosmopol experienced the largest decline in net gaming revenue of the segments during the year, down 65.1% to SEK 165m. This was of course affected largely by the closure of casinos in Gothenburg and Malmö.
Operating profit decreased from SEK 2.33bn in 2023 to SEK 2.11bn in 2024. This has been put down to higher one-off costs, provision for sanction fees and the reorganisation of Svenska Spel itself. It is also mentioned that the gambling tax in Sweden, which rose from 18% to 22% in the summer, negatively affected operating profit.
Good to know: Svenska Spel achieved a healthy revenue share of 93.9% in Q4 2024
Comments
Svenska Spel President and CEO Anna Johnson said: “It is a statement of strength that the year ends with a quarter with revenues in line with the previous year and improved operating profit linked to lower operating costs.
“This, despite the fact that 2024 was a year of major restructuring by Svenska Spel and a weak economy in Sweden.
"It shows that we are well equipped for the investments we need to make going forward. I am also pleased that the board is proposing a dividend of SEK 1.6bn to the owner. Giving back to society is an important part of Svenska Spel's purpose.
“As Sweden's entire gaming company, we give back by donating our entire surplus to the treasury. This is money that benefits society, in addition to our sponsorship of Swedish sports and our support for research into gambling problems."
