The Åland-based gaming company Paf made a profit of €22.7m in the 2015 financial year, with its revenue amounting to €110m.
It is proposed that €20m of the year’s profit should be allocated to Åland’s local government for distribution to public good.
“After a period of decreasing revenue, Paf returned to growth during the second half of 2015. The total revenue amounted to €110m, the highest in the 50-year history of Paf. The acquisition of the Italian online gaming company Winga at the end of 2014 was a strong contributing factor in the revenue growth,” said Johan Rothberg, Paf’s Acting CEO.
The revenue from online gaming amounted to €76.4m, an increase of 17 per cent compared with the previous year. Revenue from Land and Ship based gaming amounted to €33.6m, an increase of two per cent.
The Group’s total revenue during the financial year increased by 12 per cent compared with the previous year and amounted to €110m. Total profit increased from €17.2m to €22.7m, which includes a one-time payment of €2.5 million. The Group’s operating profit increased by 19 per cent, from €16.8m to €20m. The operating margin was 18.2 per cent.
“Regarding the costs, substantial investments were made during the financial year in the continued development of our own games and online operation and in the development of a new, fully responsive gaming site which was launched in December. That is the reason behind the increased development costs during 2015,” said Johan Rothberg.
The Board of Directors of Paf has proposed payment of €20mas a dividend from the annual profits and previous earnings to the Åland local government for distribution to public good. In addition to the profits that Paf allocates as a dividend, the Åland local government will receive €11.1m in repaid gaming tax arrears from the Finnish state.
“Our already ongoing international expansion into new markets must continue if we want to be able to contribute to good causes in the future on the same scale as today. This concerns mainly online gaming but also ship-based gaming where we must reach out beyond the Baltic Sea in order to grow. This requires direct buy-outs, increased marketing efforts and increased investment in existing and new technical equipment with the aim of strengthening our offering”, says Johan Rothberg.
In January 2016, the The Board of Directors of Paf decided to discharge the company’s CEO Anders Ingves. Paf’s Finance Director Johan Rothberg has stepped in as acting CEO. The company is currently recruiting a new CEO.