Svenska Spel online revenue up 14% as Swedish tax dents profits
Operating profit drops by £50m in Q1 as gaming and income tax has “significant impact” on former monopoly operator
Former Swedish monopoly operator Svenska Spel has reported a 14% year-on-year increase in its revenues from online gambling during the first quarter of 2019.
The operator also revealed a 21% increase in mobile gaming revenues during the same period. These combined business streams now account for 36% of Svenska Spel’s total business.
Overall net gaming revenue fell 6% year-on-year during the quarter to SEK2,058m (£167m), with the operator highlighting Swedish gaming taxes and income tax as having a “significant impact” on net sales, operating profits, margins and profits from gaming operations, to the tune of SEK510m.
Operating profits fell by more than SEK624m during the quarter to SEK519m, of which SEK401m was in the form of gaming taxes, while group profits also fell by SEK736m during the same period.
Group net operating margin was 25% during the quarter.
Svenska Spel’s sports and online casino business, which operates under the main parent company, reported a 4% year-on-year increase in its revenues during the quarter, rising to SEK544m.
Revenues from its retail business decreased by 6%, falling to SEK1,099m during the quarter. However, the biggest fall was in its Casino Cosmopol and Vegas brands, which declined by 17% during the same period.
Patrik Hofbauer, Svenska Spel CEO, said he was “satisfied” with the results based on the conditions of the new market following the “major transition” of the business to new Swedish regulations.
“As a result, among other things, the sports and casino business area had to build up a new customer database, completely separated from the rest of the group, and that due to the division of our products we completed a successful combination offer.”
Earlier this month, Svenska Spel made the decision to stop all online casino advertising in Sweden.