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NEWS 5 September 2019

Veikkaus to focus on digital as Q2 revenue drops

By Owain Flanders

Veikkaus’ Q2 gross gaming revenue fell 4% year-on-year, to €844.3m ($933.3m), with a total profit of €501.4m, a 1% decrease.

Total turnover for H1 2019 was €1.5bn, a 6% drop.

Revenue fell in all of Veikkaus' games, apart from Lotto which increased by 8% for Q2 to €187.5m.

The fall comes amid concerns over the future of Veikkaus’ monopoly in the land-based Finnish gaming market.

In August, Veikkaus announced it would be suspending all purchased advertising until the end of September after receiving government criticism of its marketing strategy.

Furthermore, after a citizen’s initiative called for the removal of slot machines from Finnish shops and kiosks, Veikkaus pledged to reduce the number of slot machines and introduce verification technology.

Veikkaus estimates this will cut company profit by €100-€150m every year.

The operator has blamed “the changing operating environment” for the revenue fall, outlining its plans to invest increasingly in its digital channels.

Veikkaus does not hold a monopoly over the online gaming market in Finland, where it competes against foreign gaming operators.

Olli Sarekoski, Veikkaus CEO, said: “The prerequisite for Veikkaus’ operating capacity is, in any event, a better digital channelling capacity that enables us to direct gaming towards licensed and responsible gaming.

“We want to be able to continue to offer games responsibly, minimising gaming-related harm, ensuring gaming revenue continues to be channelled to the benefit of Finns.”

RELATED TAGS: Financial | Industry
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