The Danish state-owned lottery and gaming operator Danske Spil has published its financial report for Q3 of FY2021, revealing a 2.9% increase in GGR and a 3.4% rise in profits.
Danske Lotteri Spil, the lottery side of the business, posted revenues of DKK2.03bn representing an increase of 5.8% year-on-year.
The lottery business also contributed to the majority of total profit before financial items. In total, Danske Spil’s profit before financial items stood at DKK1.59bn, up 3.4% YoY, with Danske Lotteri Spil contributing to DKK1.39bn.
Meanwhile, the betting and gaming side of the business, Danske Licens Spil, generated DKK1.36bn in revenue, largely thanks to the increased sporting calendar, aided by Denmark reaching the semi-finals of UEFA Euro 2020.
However, it was Swush, the operator’s fantasy sports platform which provided the most growth in Q3. Revenues from Swush grew from DKK5.5m in 2020 to DKK15.2m in Q3 2021.
COVID-19 is having an impact on Danske Spil’s gaming division, Epic Gaming, given that more of its halls have been closed throughout Q3 2021 than the previous year. As a result, Epic Gaming’s revenue dropped from DKK188.3m to DKK130.9m.
The operator was forced to pay higher taxes throughout 2021 following the decision from the government to increase its tax rate from 20% to 28% from January. As a result, taxes paid to the Danish state were up 25.2% to DKK450.7m.
However, due to the strong financial performance throughout the period, the operator posted a post-tax profit of DKK1.23bn, up by DKK54.6m from the previous year
Following the strong financial situation of Danske Spil, it has increased its profit guidance for the financial year. Previous forecasts indicated that it would make a profit between DKK1.4-1.5bn, however, updated forecasts predict a profit of DKK1.5-1.6bn.