Svenska Spel, a Swedish state-owned operator, posted its financial results for the second quarter of the year. The company’s net gaming revenue plateaued but its land-based operations experienced a steady recovery.
Svenska Spel Posted Its Q2 Results
According to Svenska Spel, the company’s net gaming revenues increased by a single percent during the second quarter of the year. The former monopoly earned about $188 million for the period, which is negligibly higher than what it earned in Q2 2021. However, the main difference is that in Q2 2021, Svenska Spel was forced to close its casinos.
Considering the latter fact, it is hardly surprising that the operator’s brick-and-mortar casinos earned a whopping 95% more than in the same period in 2021. For reference, Svenska Spel’s casinos in the country earned a total of $27.5 million in Q2 2022.
Looking at Svenska Spel’s other verticals, Svenska Spel’s lottery operations accounted for 61% of its total revenues. The vertical earned the company $110 million, which is roughly the same as what the company earned in Q2 2022.
Svenska Spel’s sports and casino segment saw its net gaming revenues decline by 19%. The company explained that the lower revenues come as a result of its new responsible gambling protocols.
Looking at other metrics, Svenska Spel’s operating profits for the second quarter of the year declined by 7%. The company attributed this to the high costs of investments in new products and technologies. Meanwhile, the operating margin decreased from 30% to 27%, which is three percent less than what the government expects of Svenska Spel. Online transactions, on the other hand, fell by 5%.
Overall, the first half of the year saw net gaming revenues decline by 1% compared to the same period in 2021.
The Company Is Committed to Safer Gambling
Patrik Hofbauer, the company’s chief executive officer, spoke about the company’s new measures concerning safer gambling. According to him, Svenska Spel is committed to responsible gambling and wants to focus on having healthier revenues.
We continue to provide our customers with entertaining gaming experiences in a responsible way, as we want gaming to be a joy for everyone.
Patrik Hofbauer, CEO, Svenska Spel
A month ago, Hofbauer harshly criticized the lack of control and rules in Sweden’s restaurant casino sector. He noted that even high-risk gamblers can play in Sweden’s casino restaurants. Hofbauer called for new regulations that would prevent this from happening and better protect the Swedish customers.
This was not the first time Hofbauer has criticized the industry for not doing enough to protect its customers.