Svenska Spel Sees Revenue Drop 8.2 Percent In Q3

Svenska Spel, the state-controlled gaming firm, saw revenue drop by 8.2 percent year-on-year to SEK 1.85 billion (EUR 178.5 million) in the third quarter due to the effect on its retail operations of the Covid-19 pandemic.

Tur, the lottery division, continued to account for the majority of sales, rising 5.2 percent to SEK1.18bn, driven by Eurojackpot ‘s high prizes.

Revenue increased 6.5 percent to SEK490 m in the sports and casino segment, including online items.

The return of live sports helped offset a drop in online casino revenue caused by the new temporary SEK5,000 weekly spending limit imposed by Sweden.

The operator has also recently launched a Trav & Galopp horse betting product with France’s PMU.

The rise in igaming and lottery, however, failed to counter the ongoing shutdown of the casino chain Casino Cosmopol and the decline in the number of operating land-based slots.

The operating slot machines were subject to temporary restrictions, all of which together meant that the Casino Cosmopol & Vegas division ‘s revenue dropped 58.7 percent to SEK177 m.

Gaming operations net sales fell 8 percent to SEK1.30bn. Operating profit decreased to SEK531 m by 16.9 percent.

Svenska Spel’s chief executive, Patrik Hofbauer, said: “Our sports games are going very well and we are increasing revenues from number games and lotteries.

“The fact that the group’s total revenues are declining is due to the fact that our physical casinos have been closed throughout the quarter.

“Despite this, the group as a whole is still generating profits, which shows strength and stability.”

Svenska Spel ‘s revenue decreased by 9.1 percent year-on-year to SEK5.55bn for the nine months to September 30.

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About Joe Kizlauskas

Joe is a seasoned iGaming copywriter and speaker who has been in the business since 2015. He's written more words on all elements of iGaming than he likes to remember, and he's contributed material to a number of well-known brands. Joe may be seen playing 5 a side, at the gym or playing games on his Playstation when he is not writing.