Svenska Spel Releases 2023 Interim Report and Announces $181M Dividend Plan

Svenska Spel, the Swedish state-owned gambling operator, released its interim report for 2023, which revealed stable revenue throughout the year. The company reported a total net revenue of SEK 8,029 million ($766 million), consistent with the previous year’s results. The fourth quarter also showed stability, with net gaming revenue reaching SEK 2,121 million ($202 million), marking a marginal 3% decrease compared to the same period the previous year.

Despite the stable revenue, Svenska Spel reported a decrease in operating profit for Q4, amounting to SEK 485 million ($46 million), representing a 16% decline. The operating margin for the period also declined to 23%. For the full year, the company achieved an operating profit of SEK 2,333 million ($222 million) with an operating margin of 30%. However, the net profit for the year stood at SEK 1,941 million ($185 million), showing a 3% year-on-year decline.

The company announced its plan to pay a SEK 1.9 billion ($181 million) dividend to its shareholders. Despite the overall stability in revenue, some of Svenska Spel’s brands continued to struggle, particularly Casino Cosmopol and Vegas, which experienced a 25% decrease in net gaming revenue due to lower customer demand and ongoing restructuring activities.

As a result, Svenska Spel implemented measures to offset the decline, including the reduction of 220 full-time positions, with approximately 100 redundancies, and the closure of its casinos in Malmö and Gothenburg. The Tur lottery also experienced a net gaming revenue decline of 2% year-on-year in Q4.

However, the Sports & Casino segment saw a 7% increase in net gaming revenue, attributed to a rise in active customers and sales. Throughout the eventful year, Svenska Spel achieved recognition for its sustainability efforts and corporate initiatives, paying SEK 35 million ($3.3 million) to 8,654 youth sports associations through its Gräsroten initiative.

The year also saw the launch of new platforms and products, including a new poker platform and an online casino under the Sports & Casino segment, along with a digital lottery for Swedish sports associations. The company also selected Kambi as its new sportsbook provider to enhance the Oddset brand.

Erik Strand, the president and CEO of Svenska Spel, commended the company’s dedication to sustainable gambling, noting an increase in the share of healthy revenue compared to the previous year. Despite the company’s accomplishments, the Swedish gambling industry faced challenges, as evidenced by BOS’s chief expressing disagreement with the ban on online gambling advertising in public transport.