Svenska Spel secures its best second quarter since the re-regulation of gaming in 2019

Eurojackpot, Oddset and casino drove the growth, while the World Cup contributed to a high level of customer engagement

Swedish betting company Svenska Spel delivered its best second quarter since the re-regulation of the gaming market in 2019, with increased net gaming revenues, improved operating profit and strengthened operating margin.

Eurojackpot, Oddset and casino drove the growth, while the World Cup and the partnership with Swedish football contributed to a high level of customer engagement that strengthens the business.

The group’s net gaming revenue amounted to SEK 1,963m during the quarter, an increase of seven per cent compared with the corresponding quarter last year. Svenska Spel said the growth was driven by high customer activity and an increase in the number of customers in both lotteries and sports and casino games.

Anna Johnson, President and CEO of Svenska Spel, said: “We have a clear focus on more customers choosing Svenska Spel, and the development during the quarter shows that our priorities are having an effect. We continue to create sustainable growth by improving our customer offering, developing the gaming experience and strengthening our product brands.”

Revenue from its online sales channel increased by 11 per cent. The investment in online casino is an example of how Svenska Spel is strengthening its customer offering. During the quarter, the company improved the customer experience, expanded functionality and launched clearer customer communication. Together, these efforts contribute to a more attractive and competitive offering.

The last month of the quarter has been marked by the football World Cup, which shows the power of football to bring people together. Svenska Spel has carried out successful activities linked to football, which has created great commitment among customers.

“Our long-term collaboration with the Swedish Football Association is an important part of that. It is a partnership that strengthens our business and at the same time contributes to value for sport throughout Sweden. When we deliver strong financial results, it also gives us better conditions to continue to give back to society and to Swedish sport,” said Ana Johnson.

Net gaming revenue in the Tur business area increased by seven per cent compared to the same quarter last year. Eurojackpot was the growth engine of the lottery portfolio, which broke its single-month revenue record in May. Lotto continues to develop positively, while Triss is affected by tougher comparative figures as Easter fell early this year.

For the Sports & Casino business area, net gaming revenue increased by 11 per cent compared with the same quarter last year. Growth was driven by sports betting and casino. The wide range of offerings during the World Cup, together with activities and new customer offerings, has had a positive effect on revenue, customer activity and new customer growth. Revenues in the business area increased by 24 per cent in June compared to June last year, and sports betting increased by 135 per cent. The number of gambling customers increased by 36 per cent, and the number of newly registered customers increased by over 340 per cent in June compared to June last year. The sales targets for the World Cup through July 6 was exceeded, and things are looking positive for the final part of the championship as a result of high customer engagement.

Net gaming revenue in the Vegas business area decreased by 16 percent compared to the same quarter last year. Measures with a focus on cost-efficiency and profitable business partners continue to meet the trend as more and more customers choose online gaming.

The group’s online business increased by 14 per cent compared with the corresponding quarter last year. Online accounted for 67 per cent of the group’s revenue during the quarter.

The group’s operating profit increased by 13 per cent to SEK 617m. Increased revenues contribute to the development. Costs are increasing, but at a slower rate than revenues. The operating margin increased and amounted to 31 per cent for the quarter.

During the quarter, Svenska Spel distributed 98 million prizes on lotteries with a total value of just over SEK 269m. The highest prizes went to two players on Eurojackpot who won just over SEK 28m each in the same draw. The sports and casino games distributed 22 million winnings during the quarter, of which 16 on Stryktipset, five on Europatipset and one on Måltipset. The highest win in sports betting was just over SEK 3m on Europatipset.

In June, Svenska Spel announced an extended and expanded collaboration with the Swedish Ski Association until 2032 with the vision that Sweden will be the best in the world at snow. It is a historically large investment in Swedish skiing and snowboarding sports that for the first time includes all sports within the federation. The partnership also means an even greater focus on talent and elite development with an expansion of Team Svenska Spel.

Having exited the land-based casino business last year, Svenska Spel has now sold the site of its former Casino Cosmopol property in Stockholm to real estate company, Alecta Fastigheter.