Svenska Spel recently released its interim report for the year 2023, providing insights into its financial performance and operational developments. Despite facing various challenges, Svenska Spel reported stable revenue figures for the year 2023. The company recorded a total net revenue of SEK 8,029 million ($766 million), consistent with the previous year’s results. Notably, the fourth quarter saw a marginal decrease in net gaming revenue, amounting to SEK 2,121 million ($202 million), representing a 3% year-on-year decline.
With an operating profit of SEK 485 million ($46 million) in the fourth quarter of 2023, marking a 16% decrease compared to the same period last year. The operating margin for the quarter also experienced a decline, standing at 23%. However, the full-year results demonstrated a commendable operating profit of SEK 2,333 million ($222 million) and an operating margin of 30%.
Despite stable revenue and operational performance, Svenska Spel witnessed a 3% year-on-year decline in net profit for the year 2023, amounting to SEK 1,941 million ($185 million). In light of these financial results, the company’s board announced plans to pay out a dividend of SEK 1.9 billion ($181 million), reflecting a commitment to delivering value to shareholders amidst market challenges.
Svenska Spel encountered several challenges throughout the year, particularly in its Casino Cosmopol and Vegas segments. Lower customer demand and ongoing restructuring activities contributed to a 25% decrease in net gaming revenue for these segments. In response to these challenges, Svenska Spel implemented workforce reductions and announced the closure of certain casino locations to mitigate financial pressures.
Despite the challenges, Svenska Spel has made significant strides in various operational areas. The Tur lottery segment experienced a modest decline in revenue, while the Sports & Casino segment witnessed a 7% increase in net gaming revenue, attributed to growth in active customers and sales. Furthermore, Svenska Spel’s commitment to sustainability was underscored by its recognition as the most sustainable gambling company in the Sustainable Brand Index and its contributions to youth sports through the Gräsroten initiative.
Throughout 2023, Svenska Spel embarked on strategic initiatives to enhance its offerings and expand its market presence. The launch of new platforms, including a poker platform and an online casino, reflects the company’s commitment to innovation and customer engagement. Moreover, partnerships with industry-leading providers such as Kambi aim to strengthen Svenska Spel’s sportsbook offering and elevate the Oddset brand.
Erik Strand, President and CEO of Svenska Spel, expressed optimism regarding the company’s performance and strategic direction. He emphasized Svenska Spel’s commitment to sustainable gaming practices and highlighted the increasing share of healthy revenue, signaling positive momentum for the future.
Svenska Spel’s 2023 interim report offers valuable insights into the company’s financial performance, operational challenges, and strategic initiatives. Despite facing headwinds in certain segments, Svenska Spel remains committed to delivering value to stakeholders and driving sustainable growth in the dynamic gambling industry.
