Svenska Spel. Source: Onventis

Svenska Spel Sees Decline in Net Profit Amid Casino Closure

Svenska Spel, Sweden's prominent gambling operator, faced a notable setback in the first quarter of the year, reporting a 24.6% year-on-year decline in net profit to SEK294.0 million ($27 million). This dip in profitability was attributed to increased costs and a 1% drop in revenue. Net gaming revenue for the period ending March 31 amounted to SEK 1.96 billion, compared to SEK 1.98 billion in the same quarter of the previous year.

While Svenska Spel experienced revenue growth in its Tur's lottery segment compared to the previous year, the closure of its casino and bookmaker segments significantly impacted overall earnings. Notably, the closure of the Cosmopol casinos in Gothenburg and Malmö, which ceased operations at the end of February, contributed to the decline in revenue.

Interim CEO Erik Strand attributed the decline in the first quarter to a period of "adaptation" within the business. The closure of the Cosmopol casinos played a pivotal role in this adjustment phase, underscoring the challenges faced by Svenska Spel during this transitional period.

24 April 2024, 10:00

Finance Sweden

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