Svenska Spel has announced its mid-year results for the period from January to June 2024, as well as its second-quarter results.
During the January to June 2024 period, Svenska Spel reported revenue of SEK 3.83 billion (USD 360 million), a decline of 3% compared to the same period last year. This decline can be attributed to several factors; however, Svenska Spel noted that changes in its casino operations were the cause of this phenomenon, as the operator has ceased operations at all Casino Cosmopol locations, except for the one in Stockholm.
Operating profit fell 18% to SEK 950 million, partly also due to the impact of Casino Cosmopol, as the cost of closing the casinos in Gothenburg and Malmö, along with restructuring costs and administrative fines, amounted to SEK 375 million.
Profits also experienced a similar decline, falling 19% year-over-year to SEK 794 million.
Despite these declines, Svenska Spel's online and Tur divisions both achieved growth in the first half of the year, with online sales channels increasing by 7% and Tur net gaming revenue (NGR) growing by 5%.
Swedbank's second-quarter report states that its net revenue was SEK 1.87 billion, a decrease of 5% year-over-year.
Mainly, this decrease is again attributed to the decreased capacity of Svenska Spel's Casino Cosmopol operations, as with two casinos closed compared to last year, the business's net revenue fell by SEK 90 million, or 72%, leaving only one casino, Casino Cosmopol Stockholm, still in operation. The operator's Las Vegas division also took a hit, with net revenues falling 24%, primarily due to "severe economic conditions faced by business partners and enhanced gaming responsibility."
Despite these declines, other divisions still achieved positive growth this quarter, such as online gaming, which grew 8%, accounting for 59% of Svenska Spel Group's revenue. The Tur division of the business also saw growth, with NGR increasing by 3% year-over-year, where Eurojackpot was a significant factor in this development.
Overall, Svenska Spel's second-quarter operating profit grew by 17%, reaching SEK 640 million, which Svenska Spel claims was due to restructuring efforts carried out from October to March. The operator’s profits also grew 5% year-over-year, reaching SEK 499 million.
For the first quarter of 2024, Svenska Spel reported a 49% drop in operating profit—indicating that although profits are still declining, there are now signs of recovery.
During this time, Svenska Spel welcomed its new President and CEO, Anna Johnson. Speaking on performance, Johnson stated: "We are now beginning to see the results of the restructuring implemented at Svenska Spel. We have reviewed our organization, work methods, and costs. Subsequently, we restructured Svenska Spel and established a new organization starting April 1."
"We also closed the casinos in Malmö and Gothenburg. This has reduced costs, increased revenues, and improved the operating profit margin for the second quarter. It has given us the opportunity to invest in transformation, strengthening responsible gaming work, and creating growth investments."
