Resilient revenue performance was highlighted in the interim report for the fiscal year 2023 provided by the well-known Swedish gaming corporation, Svenska Spel. The company’s financial statements showed a net revenue of SEK 8,029 million ($766 million), which was the same as the amounts from the prior year. Interestingly, net gaming revenue in the fourth quarter was relatively stable at about SEK 2,121 million ($202 million), indicating a little 3% year-over-year decrease.
Svenska Spel reported a decline in operating profit in Q4 of SEK 485 million ($46 million), a 16% fall from the same period the previous year, despite constant revenue data. There was also a little decline in the operating margin, which ended the quarter at 23 percent. With an operating profit of SEK 2,333 million ($222 million) and an operating margin of 30%, the full-year figures, however, gave a somewhat better image.
Navigating Sector Challenges
The company’s financial resilience was juxtaposed against challenges faced by some of its brands, particularly Casino Cosmopol and Vegas, which witnessed dwindling customer demand and ongoing restructuring efforts. These factors contributed to a 25% decline in net gaming revenue within this segment, fueled by intense competition from the online gaming sphere.
To counteract the downward trend, Svenska Spel undertook strategic measures, including workforce reductions at Casino Cosmopol, resulting in 220 full-time positions being terminated, with plans to shutter casinos in Malmö and Gothenburg. Despite these challenges, the Stockholm casino will remain operational.
Despite sector headwinds, Svenska Spel experienced notable successes in other segments, with the sports & casino segment witnessing a 7% uptick in net gaming revenue, attributed to increased customer engagement and sales volume.
Amidst operational challenges, Svenska Spel celebrated several achievements in 2023, including the launch of new gaming platforms and initiatives such as the digital lottery for Swedish sports associations. Additionally, the partnership with Kambi as the new sportsbook provider aimed to bolster the company’s offerings and enhance the Oddset brand.
Erik Strand, President, and CEO of Svenska Spel, lauded the company’s commitment to sustainable gambling, emphasizing the positive impact on revenue streams and customer engagement.
“Our continued focus on sustainable gaming is having an effect and the share of healthy revenue is increasing compared to the same quarter last year. The number of sustainable customers is also increasing to the highest level ever.” – Erik Strand, President & CEO, Svenska Spel
As Svenska Spel navigates the dynamic gaming landscape, its strategic agility and commitment to sustainability position it for continued growth and resilience in the face of evolving industry dynamics.
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