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  • Q3 2023: Svenska Spel hails online growth as land-based revenues dwindle
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Net gaming revenue (NGR) at Swedish state-owned operator Svenska Spel grew by 0.6% in Q3, despite reductions across the company’s land-based business segment.

Financial results

Svenska Spel generated total NGR of SEK1.97bn during Q3, representing a modest increase of 0.6% year-on-year.

Total operating profit came in at SEK686m, up 0.7%.

Of Svenska Spel’s three core business units, the Tur lotteries business generated the most revenue at SEK1.21bn, up 2% year-on-year.

Online sports betting and casino generated a further SEK510m, up 4.1%.

The land-based Casino Cosmopol and Vegas business unit was the only segment to see lower NGR this quarter than in the prior-year period. There, NGR fell by 11.5% to SEK247m.

Across the whole business, online was the most popular sales channel, generating SEK1.04bn of the total revenue, up 6.1%.

‘Agent’ sales, those undertaken through third parties, accounted for a further SEK663m in revenue, down 3.6% year-on-year.

Meanwhile, revenue from restaurants and bingo halls fell 10.7% to SEK117m, while land-based casino revenue came in at SEK131m, down 11.5%.

Adding those figures to the first two quarters of 2023, Svenska Spel has generated total NGR of SEK5.91bn in the year-to-date, up 1% year-on-year.

Management commentary

Svenska Spel CEO Patrick Hofbauer celebrated the increase in online revenue but pointed out that the gains were partially offset by reductions in the Casino Cosmopol and Vegas brands.

He also pointed out, however that the Swedish gambling market overall had stopped growing during the first half of 2023 for the first time since 2020.

“In a time of zero growth, the revenues for two of Svenska Spel’s three business areas are growing during Q3,” he said.

“Our customer base is growing and the share of healthy income is increasing – so we have more customers who, in addition, play more sustainably,” he added.

As for the declines at Casino Comopol and Vegas, Hofbauer said this was caused by several factors which together resulted in lower visitor numbers and revenues.

“The biggest impact is from increased competition from online games and restaurant casinos, as well as our strengthened measures in the work with duty of care and against money laundering,” he said.

In response, Svenska Spel has introduced a raft of changes to the operations of Casino Cosmopol venues, including reduced opening times, as previously announced.

Patrick Hofbauer is set to stand down as CEO of Svenska Spel from January 2024.

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