Swedish lottery and online gaming group Svenska Spel has published its interim report for the six-month trading period, January to June 2020, citing stable operating profit despite “difficult times”.
Operating profit of 12% was achieved in the face of the ongoing pandemic which, said the firm, had a major impact on revenues as a result of closed physical casinos and temporarily paused sports games. Number games continue to develop positively during the period, it added, and at the end of the second quarter sports games have begun to show an upturn.
The group’s net gaming revenues during the first half of the year amounted to SEK 3,698m (4,092m), a decrease of SEK 394m or 10% year-on-year. Operating profit during the first half of the year was SEK 1,174m (1,053), an increase of SEK 121m or 12%. The improvement was primarily driven by higher net gaming revenues for the Tur business, reduced operating costs and a positive effect on the gaming tax due to lower net gaming revenues and large profit payments.
The group’s net gaming revenues for the second quarter were SEK 1,643m, which is lower than the same quarter last year (2,036m). Net gaming revenue for the Sport & Casino business decreased by 37%, while the Tur business grew by 3%.
Patrik Hofbauer, President and CEO, stated: “We show innovative power and perseverance during a tough time by continuing to launch new games and improve the gaming experience for our customers. Despite the fact that covid-19 left deep traces in many ways and despite the fact that it is not over yet, it looks brighter going forward. We are on the way up again after having managed the rapid transition to the big and unexpected changes during the spring.”
The effects of covid-19 have affected the Svenska Spel Group in several areas. At the beginning of April, the Sport & Casino business area was virtually without sports betting, but as matches and sporting events have started, operations have recovered and employees who have had short-term work are back at work.
The Tur business has, however, taken advantage of the opportunity arising from changes in customer behavior as a result of covid-19. Many customers have gone from playing in-store to digital gaming and Tur’s customer base continues to grow.
