Finnish monopoly operator Veikkaus saw its Lotto segment increase revenue by 9% for the 2019 fiscal year despite registering a 4% year-on-year reduction on its gross gaming revenue (GGR).
Despite its year-on-year loss, the Finnish operator registered a GGR of €1.69bn and a profit of €1bn, although this figure also dropped by 1% when compared to 2018.
Regarding its 9% increase in Lotto, the segment, which was the operator’s best performing of the year, saw it earn €205.2m in revenue.
Regina Sippel, Veikkaus CFO, said: “The year 2019 was challenging to Veikkaus business-wise. The provision and marketing of foreign online games increased. This led to a decrease in our market share and a drop in gross gaming revenue. Under these circumstances, the profit we have made by focusing on cost-effectiveness can be considered good.”
It was also revealed that €309m of GGR value was lost by Veikkaus to other operators, a 9% increase when compared to 2018.
Regarding the decline in GGR, the operator has since attributed it to a decrease in market share, which was 85%, down 1% year-on-year.
The news follows on from a period of public scrutiny in regards to the operators responsible gambling framework which has culminated in the firm committing to introduce mandatory identification for its slot machines and other games.
Moreover, Veikkaus is also set to significantly reduce the number of distributed slot machines and implement a new responsible marketing strategy.