Swedish state-owned Svenska Spel net revenue down 9% in Q3 2024

Garance Limouzy October 24, 2024

Swedish state-owned operator Svenska Spel has reported a notable decline in revenue and net profit for Q3 2024. The latest figures indicate that the company generated SEK 1.78 billion (€156 million) from July to September, a 9.2 percent decrease compared to the same period last year (NGR). This downturn is largely attributed to the recent increase in gambling taxes, which rose from 18 percent to 22 percent in July, coupled with a heightened focus on responsible gambling practices.

Anna Johnson, CEO and Group Manager, explained, “Under the third quarter, Svenska Spel’s customer base continues to grow, and the share of healthy revenues is developing positively. The business area Tur has another good quarter with growing revenues”. Acknowledging the company’s disappointing Q3 results, she added, “However, the group’s results are weighed down by lower revenues in other business areas and the increased gaming tax. Lower costs within the group as a whole contribute to an operating margin in line with the previous year.”

Tax hike

The company’s report reveals that the financial impact of the new tax structure has been felt significantly over the past two quarters.

ATG, another prominent player in the Swedish betting market, has also felt the repercussions of the tax hike. ATG CEO Hasse Lord Skarplöth, has reported disappointing results this quarter due to the 4 percent increase in gambling taxes, explaining: “The tax increase, as well as lower net gaming revenues in the third quarter, affected three of our most important key figures for the first nine months of the year.”

Results analysis

The Sport & Casino segment recorded a 12.4 percent decline, amounting to SEK 447 million (€39 million). Offline revenue plummeted by 10.3 percent to SEK 595 million (€52 million), with the restaurant and bingo hall sectors experiencing a staggering 25.6 percent drop. The closure of Casino Cosmopol venues has played a significant role in these figures, with revenues from this segment falling by 76.3 percent to SEK 31 million (€3 million), leaving only one operational casino in Stockholm.

In contrast, online gambling has seen a slight increase, rising by 2.3 percent to SEK 1.06 billion (€92 million), with 51 percent of this total generated through mobile platforms. Online gambling accounted for 59 percent of all revenues in Q3.

Responsible gambling efforts

Svenska Spel has begun to track revenue from non-risk players, which currently accounts for 94 percent of its income. Johnson explained that these changes aim to foster a healthy gaming environment, even if it results in short-term financial challenges.

“We are reporting the share of healthy revenues—those from customers with a low risk of developing gambling problems. This initiative aims to increase transparency within the gaming industry and demonstrate that it is possible to operate a gaming company sustainably,” stated Johnson, adding: “The share of healthy revenues continues to increase, reaching 94 percent during the third quarter. Our focus on sustainable gambling is having an effect, as we are conducting more care calls based on increased selection criteria compared to the same quarter last year.”

However, this stance comes with a financial cost. As Anna Johnson explained, “Our commitment to responsible gambling has also had an adverse effect on revenue. We intend to implement further measures to promote sustainable growth that prioritises both our customers’ welfare and our bottom line.”