Svenska Spel Group’s Year-end Report 2022
Focus on new gaming experiences and sustainable gaming – the board intends to propose a dividend of SEK 2 billion
VISBY, Sweden (February 8, 2023) — The Svenska Spel Group’s fourth quarter is characterized by continued investments in new gaming experiences and a maintained focus on sustainable gaming. Svenska Spel’s board intends to propose a dividend to the owner of SEK 2 billion. This is evident from Svenska Spel’s year-end report for 2022, which is presented today.
“I am happy that the board intends to propose a dividend of SEK 2 billion to the owner. That our surplus goes back to the Swedish people is one of the reasons why we are all of Sweden’s gaming company. During the 25 years that Svenska Spel has existed, together with our customers, we have contributed over SEK 100 billion to the state treasury,” says Patrik Hofbauer, president, and CEO of Svenska Spel.
For the full year 2022, net gaming revenue is SEK 8,036 million (8,144), a decrease of 1 percent compared to the previous year. The operating profit for the group is SEK 2,387 million (2,468), a decrease of 3 percent. The operating margin amounts to 30 percent (30).
The group’s net gaming revenue for the fourth quarter is SEK 2,185 million (2,233), which is a decrease of 2 percent. The operating profit of SEK 580 million (601) is a decrease of 3 percent, and the operating margin amounts to 27 percent (27). The online business increased by 1 percent compared to the same quarter last year and accounts for 48 percent (47) of the group’s revenue during the quarter.
The net gaming revenue for the Sport & Casino business area decreases during the quarter by 8 percent compared to the same quarter last year. Strengthened gaming responsibility measures continue to have a positive effect on the share of healthy revenue, which in the quarter reached an all-time high, but negatively affects net gaming revenue. As expected, the FIFA World Cup generated a lower customer interest than previous championships, partly because of the timing, and partly because the Swedish national team did not qualify. During the WC, there was also a break in many regular national football leagues, which limited the possibility of offering games such as Stryktipset, Europatipset, and Toptipset.
Business area Tur increases net gaming revenue by 2 percent compared to the corresponding quarter last year. The increase is driven by number games, where Eurojackpot continues to be very popular with customers and had a jackpot of SEK 1.3 billion during the quarter.
For the Casino Cosmopol & Vegas business area, net gaming revenue will decrease by 10 percent. Here too, strengthened gambling responsibility measures negatively affect revenues, above all for slot machines Vegas, while the measures have the intended positive effect on the share of healthy revenues. Vegas’ net gaming revenue is also affected by the deteriorating financial situation of customers.
Within gaming experiences, customers are now offered the opportunity to swipe a Triss as a gift. The first digital Christmas calendar for Triss has been launched and the total sales of Triss calendars increased compared to the previous year. New digital lotteries have been launched, a total of 13 during the year. Within the sports games, the product pages for pool games have been improved during the quarter, the World Cup tip had its premiere and Oddset was updated with game packages. Casino Cosmopol has had full Christmas tables, well-attended New Year’s dinners, and sold-out poker tournaments at the casino in Gothenburg.
During the quarter, Svenska Spel distributed 76 million winnings on number games and lotteries with a total value of more than SEK 185 million. For the full year 2022, this means 282 million winnings from number games and lotteries with a total value of more than SEK 782 million. Sports games have delivered 20 million in winnings during the quarter, of which eleven for Stryktipset. This means that Stryktipset broke its own record from 2015 and gave 62 million in profits during the year. A total of 91 million in profits fell from the Sport & Casino business area in 2022, which is also a new record.
In this year’s Gräsroten, customers made 1.3 million active choices about which associations they want to support. This meant that 8,567 associations within 73 sports got to share SEK 35 million, which contributes to supporting youth sports and that more people can get moving.
During the year, the constant work on developing responsible gambling has resulted, among other things, in more than 19,200 gambling monitoring and care calls, as well as more than 82,300 self-tests. Recently, Svenska Spel also started reporting key figures for contacts with customers who show signs of risky gambling. The result shows that the measures have a positive effect.
Summary of the fourth quarter
- Net gaming revenue for the group amounted to SEK 2,185 million (2,233), a decrease of SEK 49 million or 2%. On a positive note, the percentage of healthy income* reached an all-time high.
- Operating profit for the group amounted to SEK 580 million (601), a decrease of SEK 21 million or 3%.
- The operating margin amounted to 27% (27).
- The result for the group amounted to SEK 559 million (475), an increase of SEK 83 million or 18%.
- The image value amounted to 50% (50) and is still the highest among gambling companies.
- New gaming experiences delivered to customers such as the opportunity to swipe a Triss, digital Christmas calendar, and Ghostbusters at Vegas slot machines.
- SEK 35 million was paid to 8,567 associations and their youth sports through our Gräsroten initiative.
- The board proposes to the 2023 annual general meeting a dividend of SEK 2,000 million (2,900).
Summary of the period January – December
- Net gaming revenue for the group amounted to SEK 8,036 million (8,144), a decrease of SEK 108 million or 1%. Lower net gambling revenues are a consequence of strengthened gambling responsibility measures for Sport & Casino and Vegas in 2021 and the fact that the casinos were open throughout the year does not compensate for that loss. On a positive note, the share of healthy income* continues to increase.
- Operating profit for the group amounted to SEK 2,387 million (2,468), a decrease of SEK 81 million or 3%.
- The operating margin amounted to 30% (30).
- The result for the group amounted to SEK 1,995 million (1,957), an increase of SEK 38 million or 2%.
- In March, the jackpot ceiling at Eurojackpot was raised from approximately SEK 900 million to over SEK 1 billion and we introduced an extra drawing day per week.
- We launched online cooperative games for our number games and thirteen new digital lotteries.
- Sport & Casino launched the high-stakes game Fullträff. With at least SEK 50 million in the pot, it is a game that complements our other sports games in a good way.
- We launched Min spelkoll, a new service that gives us and our customers a better overview of gambling and identifies signs of risky gambling.
- Svenska Spel extended the agreement with the Swedish Football Association until 2028.
* Definition, see page 20 of the Year-End Report.
Here you can read the year-end report 2022.
SOURCE: Svenska Spel.Tags: Svenska Spel, Patrik Hofbauer, Year-end Report 2022