Svenska Spel’s Q1 revenue increases despite implementation of new responsible gambling measures

Svenska Spel, the former state-owned gambling monopoly, reported a 2% increase in revenue to SEK 1.98 billion (£160 million/€180 million/$190 million) in Q1 2023, compared to SEK 1.94 billion achieved in the same period the previous year, despite the implementation of new responsible gambling measures.

The land-based Casino Cosmopol and Vegas slot offerings were impacted by a challenging financial situation in Q1, attributed to tightened consumer budgets and stricter responsible gambling measures. However, despite these challenges, the division still managed to achieve a 3% increase in revenue for the three-month period ending 31 March. Svenska Spel attributed this growth to the fact that the retail and land-based casino segments were able to operate at full capacity during the period, unlike the same period the previous year when shortened opening times were in place due to the effects of the Covid-19 pandemic.

Svenska Spel President and CEO, Patrik Hofbauer, stated, “Even in an uncertain time, we continue to create long-term value for customers, owners, and employees, as well as for Swedish sports and society in general. We do this by contributing to the treasury and supporting Swedish sports, while also offering sustainable and enjoyable gaming experiences.”

Q1 Performance Report for Svenska Spel

In Q1 2023, Svenska Spel reported an operating profit of SEK 612 million, marking a 3% increase from the SEK 595 million announced in the same period the previous year, resulting in an operating margin of 31%.

After factoring in financial investments, Svenska Spel reported a pre-tax profit of SEK 639 million, reflecting an 8.5% rise compared to the SEK 589 million achieved the previous year. The Swedish government taxed the profit SEK 132 million, resulting in a net profit for the period of SEK 507 million.

The company’s online revenue showed a quarter-on-quarter increase of 8%, now constituting 52% of Svenska Spel’s total revenue for the year, compared to the 49% achieved in the same period the previous year.

Svenska Spel attributed the 2% year-on-year revenue growth in its Sports & Casino division to progress made in the development of pool games, particularly its Stryktipset and Powerplay offerings.

“During the quarter, we have distributed SEK 52 thousand in winnings in number games and lotteries with a total value of more than SEK 291 million,” said Hofbauer, Svenska Spel’s President and CEO.

Personnel costs for the quarter rose by 10.8% year-on-year to SEK 309 million. However, the company’s other expenses decreased by 4.2% year-on-year to SEK 433 million, compared to the SEK 452 million spent in the same period the previous year.

Introduction of supplier licences

The Swedish gaming industry is gearing up for the implementation of B2B supplier licenses, with 48 licenses already issued by the Swedish Gambling Authority. These licenses are set to become a requirement for providers entering into agreements with operators in the market.

Various types of suppliers have obtained clearance from the regulator, ranging from large state-owned entities and stock exchange listed companies to relatively unknown actors.

Several notable companies have received gaming software licenses, including 888 Sweden (the Swedish subsidiary of 888 Holdings), Elk Studios (owned by Light & Wonder), Tipwin (a German gaming business), BeyondPlay (and its Malta branch), and Entain Operations (a subsidiary of Entain).

In addition, Gauselmann Group Blueprint Gaming’s UK division and B2B supplier Wazdan have also acquired licenses. Wazdan CEO Michal Imiolek expressed delight and gratitude to the Swedish Gambling Authority for the efficient process and highlighted the compliance efforts of the company’s team.

“We’re delighted to have been granted a B2B supplier permit by the Swedish Gambling Authority and we thank them for a swift, smooth process.”

Blueprint’s director of operations, Thomas O’Halleran, emphasized the significance of the approval for the company’s commitment to supplying games to the Swedish market, while also expressing excitement for continued growth and development of content for Swedish players to enjoy.

“Sweden is an important territory for Blueprint, so we’re naturally delighted to ensure our continued commitment to supply games to this region,”

“This new approval allows us to continue our growth and development of content that Swedish players will continue to enjoy and return to.”