Press Release - Svenska Spel ends the year with a strong final quarter
The year ended with a strong final quarter, characterised by continued high growth in the mobile field, the launch of a new pool game, an increased range of live sports, as well as news in the field of instant win games. Online sales experienced strong growth, with primarily mobile sales increasing by 59 per cent in the fourth quarter and 49 per cent over the whole of 2017.
Net gaming revenues for the fourth quarter increased to SEK 2,481 million (2,447), which is 1.4 per cent higher than the same quarter in the previous year. Profits of SEK 1,275 million (1,301) show a drop of two per cent.
For 2017 as a whole, net gaming revenues were SEK 8,980 million (8,993), which is slightly lower than the previous year. Increased costs for adaptation to the new AML and GDPR regulations, preparations for new gambling markets, as well as increased marketing costs, all contributed to lower profits in 2017 than in 2016. Profit for the Group is SEK 4,709 million (4,866), which is a drop of 3.2 per cent.
“We continue to show that it is possible to combine growth and also take clear responsibility in the world of gambling. Our customers respond in a positive way to the news we have delivered this year, and in the field of responsible gaming, we are seeing more and more people voluntarily suspending their accounts or taking a break from gaming. As at last December, around 20,000 customers voluntarily suspended their gaming accounts,” says Lennart Käll, CEO and Group manager of Svenska Spel.
In the fourth quarter, Svenska Spel launched an entirely new pool game, Oddset Challenge, and the range of sports games has also increased in terms of live games. Up to December, there were around 62,000 matches and sports events offered, compared with 21,000 matches and sports events in the same period the previous year. Svenska Spel has also launched the biggest new change in Lotto for over ten years, in the form of Miljonregnet [Raining Millions] which gives an even greater chance of becoming a millionaire.
Over the quarter, Svenska Spel has also contributed to child and youth organisations in the country’s sports associations, through the Gräsroten [Grass Roots] good cause. In 2017, 486,474 customers got involved and chose their favourite association to donate to whilst playing, thereby donating SEK 50 million to 8,190 associations across 71 sports.
“We are still maintaining our strong position as Sweden’s premier gaming company and meeting customer demands in terms of the gaming experience, with a wider range and product development. Customers are giving us high scores in our Satisfied Customer Index, and we have the highest image value in gambling companies, by quite some margin,” says Lennart Käll.
October – December in brief
- Net gaming revenues for the Group totalled SEK 2,481 million (2,447), an increase of 1.4%.
- The Group’s operating profit totalled SEK 1,272 million (1,297), a fall of 1.9%.
- The Group’s profit totalled SEK 1,275 million (1,301), a fall of 2.0%.
- The operating margin was 21.9% (21.5%).
Events during the quarter
- Net gaming revenues online increased by 25 per cent, of which mobile gaming increased by 59 per cent compared with the same quarter in the previous year.
- Net gaming revenues for Sportspel increased by 23 per cent due to an increased range and lower win payouts
- The launch of Miljonregnet, with an even greater chance of becoming a millionaire on the Lotto.
- The launch of Oddset Challenge, an entirely new sports pool game.
- Around 20,000 customers were voluntarily suspended from play as at last December (previous quarter around 18,000).
January – December
- Net gaming revenues for the Group totalled SEK 8,980 million (8,993), a fall of 0.1%.
- The Group's operating profit totalled SEK 4,705 (4,851) million, a fall of 3.0%.
- The Group’s profit totalled SEK 4,709 million (4,866), a fall of 3.2%.
- The operating margin was 21.8% (22.2%).
Filmed interview with CEO in Swedish: https://youtu.be/KMxGP52a8nE
You can find the year-end accounts bulletin for January – December 2017 here: https://om.svenskaspel.se/wp-content/uploads/2018/02/Bokslutskommunike-2017.pdf
Also see the appendix.
About Company www.svenskaspel.se
Svenska Spel is Sweden’s leading gaming company, offering a wide range of games of chance, sporting games and casino games, with well-known brands such as Triss, Lotto and Stryktipset. Based on a mandate from the Swedish government and the company’s core values, the vision is that gaming shall be for everyone’s enjoyment. This is achieved by offering good, responsible gaming experiences. Svenska Spel is also the country’s biggest sponsor of Swedish sport, at both elite level and grass-roots level. The Group also includes Casino Cosmopol, with Sweden’s four international casinos. The company has around 2,100 employees and its head office is in Visby
temp. PR for Svenska Spel
Telephone: +46 (0)70 660 78 27