Svenska Spel Reports Mixed Q1 2024 Results Amid Restructuring and Online Growth

Svenska Spel, the Swedish state-owned gaming operator, has released its interim report for the first quarter of 2024, revealing a mixed set of results for the group. The company reported a net revenue of SEK1.96bn ($0.18bn) during the quarter, representing a slight decrease of 1% compared to the same period last year. Svenska Spel attributed this decline to the ongoing restructuring within its Casino Cosmopol and Vegas business area.

A closer examination of the revenue breakdown reveals that the Casino Cosmopol and Vegas business area experienced a significant 32% drop in net gaming revenue, amounting to SEK 169m. This decline was primarily due to the major restructuring of Casino Cosmopol, which included the closures of casinos in Malmo and Gothenburg, as well as reduced opening hours at the remaining casino in Stockholm.

The sport and casino business area also faced challenges, with revenue decreasing by 3% to SEK 549m. Svenska Spel attributed this decline to a less favorable outcome for the pool games.

Despite these setbacks, Svenska Spel's online business emerged as a bright spot during the quarter. Online revenue increased by 6% compared to the same period last year, reaching a total of SEK 1.09bn and accounting for 56% of the group's overall revenue.

The Lottery division, known as Tur, also recorded a positive quarter, with net gaming revenue rising by 6% to SEK1.24bn. This growth was driven by the strong performance of Eurojackpot and the continued sales growth of the popular game Triss.

However, Svenska Spel's operating profit took a significant hit in the first quarter of 2024, decreasing by 49% to SEK 310m. The company attributed this decline to various costs incurred during the quarter, including the liquidation of the casinos in Malmo and Gothenburg, restructuring costs linked to the ongoing review of the group, and a penalty fee that the company had to pay.

In related news, Svenska Spel appointed Gustav Georgson as its new Head of Community Relations and Public Affairs at the beginning of this month, signaling the company's commitment to strengthening its community engagement and public relations efforts.

As Svenska Spel navigates the challenges and opportunities presented by the evolving gaming landscape, the company remains focused on adapting its operations to better serve its customers and stakeholders. The mixed results of Q1 2024 underscore the importance of strategic restructuring initiatives and the growing significance of online gaming in driving future growth.

Despite the decline in operating profit, Svenska Spel's online business and Lottery division have demonstrated resilience and potential for further expansion. As the company continues to implement its restructuring plans and optimize its operations, it is well-positioned to capitalize on the opportunities presented by the digital gaming market and strengthen its position as a leading gaming operator in Sweden and beyond.