Marginal Improvements In Svenska Spel Results


16th February, 2016 at 08:06:57

Positive final quarter returns company to growth, but can it last?

Sweden's partly state-owned gambling semi-monopoly Svenska Spel has enjoyed a positive final quarter to its year, enabling a limited return to growth.

The quarter delivered revenue up 1.6% to SEK 2.43 billion, although substantial development expenses reduced the margin to 21.3% - down a percentage point.

Over the full year NGR (net gaming revenue) was up only 0.2% marginally, reaching SEK8.96 billion, with net income rising 0.9% to SEK4.8 billon on slightly improved (0.4 percent) margins of 22.2 percent.

Digital revenue was among the brighter spots in the full year numbers, recording an 11% rise to SEK1.7 billion, with mobile producing a stellar 59% increase in contribution despite the company losing market share to competitors who additionally offer internet casino gaming.

Over 2015 Svenska Spel lost market share and is now down to 42% on land gambling market share and 20% in online market share.

With government talk of a more open (and therefore more competitive) market for Sweden, particularly in the online context, Svenska Spel management has renewed its call to be permitted to offer online casino action.

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