Swedish state-owned gambling company, Svenska Spel, has released its Q2 report, showcasing impressive financial performance for the period ending June. The report highlights significant growth in net gaming revenue (NGR) and offers insights into specific areas contributing to this success.
Svenska Spel’s Q2 Success:
Svenska Spel has reported a remarkable annual increase of SEK 4 million ($390,000) in net gaming revenue (NGR) for Q2, underlining its strong financial performance.
Total NGR and Operating Profit:
The company’s total reported net gaming revenue for the period reached SEK 1.97 billion, with an operating profit of SEK 550 million, marking a 3% increase, totaling SEK 18 million.
Sports and Casino Segment Growth:
Svenska Spel’s Sport and Casino segment experienced a notable NGR rise of 6%. This growth was attributed to various factors, including the popularity of pool games like Stryktipset, strong margins in sports betting, increased online casino activity, and a growing customer base within this business area.
Challenges in Casino Cosmopol and Vegas:
Despite overall positive performance, Svenska Spel faced challenges in its Casino Cosmopol and Vegas business area. Year-on-year, revenue in this segment decreased by SEK 29 million, representing a 13% decline from the previous year. Operating profit in this area reached SEK -52 million.
Commitment to Sustainable Gaming:
Patrik Hofbauer, President and CEO of Svenska Spel, emphasized the company’s dedication to enhancing the gaming experience for customers while focusing on sustainable gaming practices. Hofbauer noted that the share of healthy revenues and sustainable customer numbers is increasing, while the prevalence of risky gambling is decreasing.
Strong H1 Performance:
In addition to its robust Q2 results, Svenska Spel reported positive figures for the year-to-date (H1). The net revenue for H1 totaled SEK 3.94 billion, reflecting a 1% increase (SEK 45 million) compared to the previous year. Meanwhile, operating profit saw a 3% overall rise, reaching SEK 1.1 billion, with an operating margin of 29%.
Svenska Spel’s Q2 report demonstrates its resilience and growth in the highly competitive gambling industry. Despite challenges in certain segments, the company’s focus on sustainable gaming practices and its commitment to improving the customer experience have contributed to its overall positive performance. With a solid H1 performance and a strategic approach, Svenska Spel continues to thrive in the gaming market.