Svenska Spel’s Revenue Remains Stable, Despite Challenges
The interim CEO president of Svenska Spel, Erik Strand, has lauded the company’s financial performance for the 2023 fiscal year, despite facing numerous obstacles. The company managed to keep its revenue level year-on-year, with a total revenue of SEK8.03bn (£607.0m/€712.1m/$766.9m) for the 12 months ending on 31 December 2023.
Strand emphasized the stability in revenue, considering the challenges that the business had to overcome. These challenges include economic concerns, stagnant growth in the gaming market, and the difficulties faced by Casino Cosmopol and Vegas, which led to the recent closure of Casino Cosmopol venues in Gothenburg and Malmö due to limited profitability. Despite these setbacks, Strand believes that growth in other areas of the business puts Svenska Spel in a strong position for the future.
Looking ahead to 2024, Strand has expressed the company’s commitment to creating sustainable gaming experiences that contribute to a better Sweden. Succeeding Patrik Hofbauer as CEO will be Anna Johnson, who will assume her role in June, with Strand continuing as interim CEO until then.
The company’s Tur lottery division remains the primary source of revenue, with a 0.6% increase in revenue to SEK4.92bn. Revenue from the Sport & Casino arm also saw positive growth, climbing 4.6% to SEK2.17bn, attributed to the growth in pool betting and online casino segments. However, the Casino Cosmopol and Vegas segment experienced a 12.0% drop in revenue to SEK942m due to declining casino visitors in response to the rising popularity of online casino gaming.
In terms of net profit, Svenska Spel saw a 2.7% decrease, with a pre-tax profit of SEK2.45bn and a net profit of SEK1.94bn. The final quarter of 2023 also saw a 2.9% decrease in revenue, with a pre-tax profit of SEK486m for the quarter.
Overall, despite the challenges and setbacks faced by Svenska Spel, the company has managed to navigate the difficulties and maintain its revenue level, positioning itself for future growth and success.