Svenska Spel Reports Strong Q1 Results with Increased Net Gaming Revenue

Sweden’s Svenska Spel, the former state-owned gambling monopoly, has announced positive Q1 results for 2023, with a 2% increase in net gaming revenue compared to the same period last year. The company reported net gaming revenue of SEK1.98 billion ($191 million), up from SEK1.9 billion ($187.5 million) in 2022. Operating profit also increased by 3% to SEK612 million ($59,3 million), resulting in an operating margin of 31%.

New Games and Customer Experience Boost Online Revenue by 8%

The online business was the biggest contributor, accounting for 52% of the company’s revenue during the quarter, an increase of 8% compared to the same quarter last year. The company attributed this to the launch of new games, such as Momang, and improvements to the customer experience in existing games like Keno.

Svenska Spel’s Sports & Casino business saw a 2% increase in net gaming revenue, largely due to the popularity of pool games like Stryktipset and Powerplay. The Tur business also experienced a 2% increase in net gaming revenue, driven by the number of games and Eurojackpot. 

The Casino Cosmopol & Vegas business reported a 3% increase in net gaming revenue. The company stated that this was due to the complete range of games available at Casino Cosmopol, compared to limited operations in the same quarter last year.

Patrik Hofbauer Highlights Svenska Spel’s Commitment to Long-Term Value in Q1 Report

Despite the positive results, Svenska Spel’s land-based Casino Cosmopol and Vegas slot offering were negatively affected by a deteriorating financial situation in Q1, related to tightened consumer budgets and strengthened responsible gambling measures. However, the division still experienced a 3% increase in revenue for the period, as retail and land-based casinos were able to operate at full capacity compared to the previous year.

Svenska Spel’s focus on responsible gambling measures has resulted in a higher percentage of healthy revenue and an increase in sustainable customers, compared to the same quarter last year. The company distributed 52 million prizes in number of games and lotteries during the quarter, with a total value of more than SEK291 million ($28.2 million).

Svenska Spel president and CEO, Patrik Hofbauer, said: “Even in uncertain times, we continue to create long-term value for customers, owners and employees, as well as for Swedish sports and society at large. We do this through our surplus going to the state treasury and through our support for Swedish sport. But also by offering sustainable and fun gaming experiences.”

Overall, Svenska Spel’s Q1 results indicate a strong start to the year and demonstrate the company’s commitment to responsible gambling measures while still providing a range of entertaining and sustainable gaming options for customers.