Svenska Spel CEO Erik Strand hopes a newly organised business structure can inspire “long-term sustainable value creation" after a decline in operating profit of almost 50 per cent.
The comments came as the Swedish operator group reported a 49 per cent decrease in operating profit to SEK310m (£22.9m), down from SEK612m (£45.2m).
The decline is partly due to the closure of the company’s Casino Cosmopol properties in Malmö and Gothenburg, as well as its penalty fee imposed by the Swedish Gambling Authority for Svenska Spel Sport & Casino.
The restructuring within the Casino Cosmopol & Vegas business area also hit Svenska Spel’s net gaming revenue, which fell by one per cent to SEK1.96bn (£140.38m), down from SEK1.98bn (£140.4m).
The Casino Cosmopol & Vegas business area’s net gaming revenue fell by 32 per cent.
“The group's operating profit is affected by SEK-238m (£17.6m) from the Casino Cosmopol & Vegas business area, which is a deterioration of the operating profit by SEK183m (£10.2m) compared to the same quarter last year,” the group said.
However, online business increased by six per cent and accounts for 56 per cent of the company’s revenue in Q1, it said, that share rising by four per cent.
Business area Tur’s net gaming revenue rose by six per cent, its highest quarterly growth to date.
CEO Strand said: “We have reorganised, reduced the workforce, and from April 1 have a new organisation in place.
“In this way, we have freed up resources that we can invest in transformation, a strengthened gambling responsibility work and growth.
“These are important investments for long-term sustainable value creation.”
