Cosmopol closures see Svenska Spel’s revenues slide by nine per cent
The closing of two more of its Cosmopol casinos has hit Svenska Spel’s net gaming revenue hard with overall revenues down nine per cent to SEK 1,784m and Casino Cosmopol down by 76 per cent to SEK 100m.
Net gaming revenues for the Sports & Casino business area decreased by 12 percent compared with the same quarter last year. This is mainly due to the negative impact of the responsible gaming measures that have been introduced, but which have the intended positive effect on healthy revenues. The same applies to the Vegas business area, which reduces net gaming revenue by 26 percent. In addition, Vegas’ business partners continue to have a challenging market situation.
Svenska Spel’s Tur business area reported another good quarter, with net gaming revenues increasing by 1 percent compared with the corresponding quarter last year. Eurojackpot continues to be the game that drives growth and Triss also has a positive development.
Svenska Spel’s operating profit of SEK 627m showed a decrease of nine per cent. This is due to lower revenues for three out of four business areas and increased gaming tax from 1 July, which had a negative impact on profit for the quarter by SEK 70m. At the same time, previous measures to reduce costs continue to have a positive effect, contributing to a maintained operating margin of 35 per cent.
During the third quarter, Svenska Spel’s customer base continued to grow and the share of healthy revenues developed positively.
The Tur business area is another good quarter with growing revenues. However, the Group’s result is weighed down by lower revenues in other business areas and increased gaming tax. Lower costs within the Group as a whole contributed to an operating margin on a par with the previous year. This is stated in Svenska Spel’s interim report for the third quarter of 2024, which is presented today.
“The share of healthy revenues continues to increase to 94 percent in the third quarter. The reason is that our concern for customers with a focus on sustainable gaming has an effect. But it also has a negative impact on the Group’s revenues, and it will continue to do so as we plan for more measures going forward. This is a conscious priority because we want sustainable growth – a balance between growth and responsibility,” says Anna Johnson, President and CEO of Svenska Spel.
The Group’s online business continues to grow. This quarter by two percent compared to the same quarter last year, and online accounted for 59 per cent of the Group’s revenue during the quarter.
Among the quarter’s product news, Triss has launched the new campaign ticket Stjärnvinsten, where customers can scratch out three stars and win the entire scratch field. The European Champion competition has begun for the second year in a row – a competition from Europatipset that is decided over six rounds with participants both individually and in teams.
During the quarter, Svenska Spel distributed 55m prizes in number games and lottery tickets with a total value of more than SEK 444m. The highest win of the quarter was just over SEK 250m when the jackpot on Eurojackpot fell out. The sports and casino games have delivered eight million winnings during the quarter, of which the highest of SEK 10m on Stryktipset.
