• Home
  • News
  • Results
  • Q1 2024: Svenska Spel reports profit drop amid SGA fine and restructuring
igamingnext photo
Swedish state-owned operator Svenska Spel reported Q1 2024 net gaming revenue (NGR) of SEK1.96bn (€169.3m), reflecting a slight decrease of 1% compared to the same period last year.

Svenska Spel attributed the decline primarily to restructuring within its Casino Cosmopol and Vegas business segment.

Meanwhile, operating profit saw a more significant decline as it totalled SEK310m, representing a 49% drop year-on-year.

The firm’s operating margin also dropped to 16% from 31%. Both operating profit and operating margin were negatively affected by non-recurring costs of SEK375m during the quarter.

These included liquidation of the casinos in Malmö and Gothenburg following their permanent closure, restructuring costs linked to the review of the group, and a provision for the SEK100 fine imposed by the Swedish Gambling Authority for responsible gambling failures.

In the Sport & Casino segment, NGR stood at SEK549m, marking a 3% decline compared to the previous year.

Svenska Spel attributed this decrease to several factors, including a weaker sports offering for certain pool games and a reduced margin on sports betting activities.

Conversely, the Tur lottery segment experienced an upswing as it reported SEK1.24bn in NGR, representing a substantial 6% year-on-year increase.

However, the Casino Cosmopol and Vegas division faced challenges, with NGR decreasing 32% year-on-year to SEK169m.

In Q1, Svenska Spel closed the Casino Cosmopol operations in Malmö and Gothenburg, a move intended to mitigate losses within the segment.

Along with reduced operating hours at its Stockholm casino four days a week, the closures directly impacted revenues in this segment.

Transformation ahead

Svenska Spel chairman and interim CEO Erik Strand (pictured) described Q1 2024 as a “time of adjustment” intended to lay the foundations for continued successful operations.

“We have reorganised, reduced the workforce, and from 1 April have a new organisation in place,” Strand said.

This, he added, has freed up resources that the operator plans to invest in transformation and in strengthening its responsible gambling framework.

“These are important investments for long-term sustainable value creation,” he said.

While the casino closures had a substantial impact on the group’s financial results, Strand stated that Svenska Spel’s underlying business performance remained stable.

Similar posts