Operator Paf has announced its full-year financial data for 2024, with total revenue of 183 million euros ($205.8 million), a 3% increase from the figures reported in 2023.
In fact, the company stated that while achieving this positive growth, its operating profit and net profit have declined year-on-year, mainly due to the increase in lottery taxes.
Moreover, Paf also emphasized that 21.5 million euros of its total revenue will be donated to social causes, and has already been allocated for social activities, culture, youth work, sports, and environmental activities.
Performance by Sector in Fiscal Year 2024
Overall, online business was Paf's main source of revenue in 2024, contributing 161.2 million euros to the total revenue, a 4.7% increase year-on-year. Additionally, the revenue from retail betting and lottery business was 23.3 million euros, higher than the previous year's 21.8 million euros.
More specifically, Paf's annual operating profit was 57 million euros, lower than the 59.2 million euros in 2023, with an operating profit margin of 31.2%, a decrease of 2.2% year-on-year. Net profit also slightly decreased, down 1.5% compared to 54.3 million euros in 2023. Notably, since 2020, Paf's average number of employees has decreased by about 53 people, and the company's annual investment in tangible and intangible assets was 2.8 million euros, nearly half of the 5 million euros invested in 2023.
Performance by Region in Fiscal Year 2024
Geographically, although most of Paf's revenue comes from online gambling, its casino business on international waters also generated 21.6 million euros in revenue, a 6.7% increase year-on-year. Additionally, the land-based gambling business in the Åland Islands of Finland generated 1.69 million euros in revenue in 2024, higher than the previous year's 1.63 million euros.
Finland has recently confirmed plans to achieve a non-monopoly market by 2027.
Company Highlights in Fiscal Year 2024
Last year, the company made several significant advancements, including officially lowering the loss limit for players aged 20-24 from 10,000 euros to 8,000 euros, with Gambling Insider conducting an exclusive interview with Deputy CEO and Chief Responsibility Officer Daniela Johansson on this development.
At the beginning of 2024, Paf also announced its commitment to achieve net-zero emissions by 2040, emphasizing its continued efforts to meet the Paris Agreement's goal of limiting global warming to 1.5°C. Recently, the operator officially passed the regulatory review by the Swedish Gambling Authority in October.
CEO Comments
Regarding the latest performance, Paf CEO Christer Fahlstedt said: "We achieved strong results in 2024, and we are very pleased with this year. The upward trend in gambling taxes is leading to a decline in earnings, but we were prepared for this. Paf's profits decreased by 1%, mainly due to the increase in gambling taxes. Paf paid 11.8 million euros more in taxes in 2024 compared to 2023."
Specifically, the lottery tax in Finland was raised from 5% to 12%, and in Sweden from 18% to 22%. Paf has a strong customer base that can cope with the rise in taxes. A large number of small bets from players bring long-term revenue to Paf, thus we have the capacity to cope. Taxing gambling companies is necessary so that other gambling companies can also give back to society.
