The state-owned gambling monopoly in Finland, Veikkaus, just released its 2023 financial results, providing a detailed analysis of its sales income and profitability. In spite of obstacles, the business held a strong position in the industry.
The Veikkaus Group reported sales revenue of €1.03 billion ($1.13 billion) in 2023, indicating a 3.5% decrease from the year before. In a similar vein, earnings showed a declining pattern, falling 13.7% on an annual basis to reach €578.5 million ($633.7 million). Operating profit decreased 14.5% to €573.6 million ($628.3 million) in line with this.
The company attributed these declines to several factors, including an increase in the Lottery tax and one-time costs incurred during cooperation negotiations. Additionally, significant investments in the Group’s future contributed to the financial adjustments.
Insights from Veikkaus Group’s Performance
Veikkaus Group’s parent company, Veikkaus Oy, witnessed a 14% decrease in profit, amounting to €585 million ($640.8 million). Operating profit mirrored this decline, reporting a 14.7% decrease to €580.2 million ($635.5 million) for the fiscal year. Notably, the implementation of a responsible gaming initiative in May 2023, mandating player identification for physical ticket-game players, played a role in these results.
Regina Sippel, Veikkaus’ CFO, expressed satisfaction with the company’s overall performance, particularly highlighting the success of online games. Sippel emphasized Veikkaus’ commitment to further development investments in its digital channel, underlining a strategic shift toward digital gaming experiences.
Veikkaus Group’s study provided further insight into their initiatives to encourage responsible gaming. In 2023, 90.6% of actions were related to authenticated gaming, an increase of 11.1% from the previous year. Since January 1st of this year, the corporation has enforced required registration and identification for all game participation, reaffirming its commitment to player safety.
Veikkaus noted a rising preference for online gambling that was consistent with general trends. In 2023, digital activities accounted for 54.8% of overall gaming income, up 4.5% from the year before. By the end of 2023, the company’s registered user base had grown by 180,000, or around 2,520,000.
The most recent financial report from Veikkaus Group emphasizes the proactive steps the firm has taken to achieve sustainable growth and provides insightful information on how the gaming industry is changing.
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