Sweden’s Svenska Spel has reported financial results in line with the previous year during the opening quarter, as the operator saw online gaming growth while shutting down its casinos.
Net gaming revenues for the group in Q1 2020 amounted to SEK2055m (£162.82m), compared to a similar SEK2056m in the previous year. Online gaming grew by 13 per cent and the digital business now accounts for 41 per cent of revenue.
Profit for the group amounted to SEK545m (SEK408m) and operating margin was 34 per cent (25 per cent).
The impact of Covid-19 didn’t affect the group’s results too much, arriving only at the back end of the reporting period, but the sport and casino business has taken measures recently to introduce reduced hours of working for 45 of its 135 employees to cut costs, while all four Casino Cosmopol casinos have been temporarily closed due to the Swedish government's decision to ban gatherings of over 50 people.
Notices of termination and reduced hours have now affected more than 800 of Casino Cosmopol’ss and CC Casino Restaurang's total of nearly 900 employees. Svenska Spel's board has decided to withdraw its proposal for a dividend, “as the effects of the coronavirus are difficult to overlook.”
The operator also stated that the Competition Authority's investigation into the complaint that Svenska Spel abuses its dominant position has been completed and the case is written off.
Patrik Hofbauer, president and CEO of Svenska Spel, said: “Svenska Spel, like many other companies and organisations, has quickly been forced to adapt to a new reality with the effects of the coronavirus.
“We have therefore implemented measures to ensure a sustainable business and we have done so with the utmost care about our customers and employees. Our hope is to be able to quickly switch to full operations when the situation turns around.”
