BUSINESS

Svenska Spel defies tough competition with $510M H1 revenue

TAGs: Lennart Source, Leonard Postrado, Svenska Spel, Sweden

Despite “tough competition” competition in the market, state-owned Swedish gambling operator Svenska Spel manage to pull a one percent financial growth in the first half of the year.

Svenska Spel defies tough competition with $510M H1 revenueIn a statement posted on its website, Spel Chief Executive Officer Lennart Source announced that the state-run gaming firm posted a SEK4.4 billion (US$510.5 million) net gaming revenue during the January to June period. The growth represented an increase of 1% on the amount posted in the corresponding period last year.

Consolidated operating profit was up 0.9 percent year-on-year to SEK2.4 billion (US$ 277.27 million), while net income for the firm increased 1.2 percent to SEK2.4 billion (US$277.27 million), with a slightly lower operating margin of 22.1 percent.

Source, however, pointed out that the revenue of Spel was tempered by the industry’s lackluster performance in the second quarter.

“We increased net gaming revenue overall for the first half compared with the previous year. However, we see a drop in growth, particularly during May which affected the second quarter negatively, from June we once again see growth,” said Source.

For the three-month period to the end of June, net gaming revenue was down 2.4 percent year-on-year to SEK2.1 billion (US$242.61 million), while operating income dropped 4.8 percent to SEK1.1 billion (US$127.08 million). Profit for the quarter slipped 3.5 percent to SEK1.1 billion (US$127.08 million), with a lower operating margin of 21 percent.

Spel reported that Channel Online, which accounts for most of our growth, increased 9 percent in the second quarter while sales via mobile phones increased by 53 percent. In June, Spel launched a game app for the football championship and has already been downloaded by over 170,000 people.

“We will continue to strengthen customer relations further and increase the pace of innovation by delivering new experiences, new products and services where the games are to the delight of all,” said Source.

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