Veikkaus Release Interim Financial Report for the Period January-June: Veikkaus’ Revenue Growing

August 30, 2023 | Reveue

HELSINKI, Finland (August 29, 2023) — Veikkaus Oy’s gross gaming revenue (EUR 519.0 million) increased by 0.6 per cent for the period January–June compared to the same period the previous year. The first half of the year showed positive performance, especially in Veikkaus Oy’s digital channel. In May, all of Veikkaus’ coupon games began to require identification. The impacts of identification on gambling have been as expected.

January-June 2023 for Veikkaus:

The Veikkaus Group’s actual revenue in January–June was EUR 519.3 million (+1.0% compared to the corresponding period in 2022). The actual operating profit includes both the gross gaming revenue from gambling activities and turnover from other business activities.
Veikkaus Group’s profit was EUR 311.9 million (-5.7%) and its operating profit was EUR 310.2 million (-6.2%). The decrease in the result was due to an increase in the Group’s total costs, especially the lottery tax and development costs.
The parent company Veikkaus Oy’s gross gaming revenue amounted to EUR 519.0 million (+0.6%). Veikkaus Oy’s profit for January-June was EUR 314.8 million (-6.8%) and its operating profit was 313.2 (-7.2%).
The lottery tax paid to the central government on gross gaming revenue increased by 1.6 percentage points from the previous year’s 3.4% and is 5% this current financial year. The company paid EUR 25.9 million in lottery tax for the January–June period, which is EUR 8.4 million more than at the same time the previous year.
54% of Veikkaus’ gross gaming revenue came from the digital channel and 46% from physical points of sale.
Authenticated gambling accounted for 87.3% (+7.5 percentage points) of all Veikkaus Oy’s gambling activities.

– Veikkaus’ result and performance during the first half of the year (January-June) were as expected, and we can be satisfied with these as a whole. The first half of the year was positive, especially in Veikkaus’ digital channel, says Veikkaus CFO Regina Sippel.

The gross gaming revenue for gambling activities developed positively, especially in online casinos (digital automated games and digital table games), which produced a gross gaming revenue of EUR 93.2 million (+9.4%). The increase was mainly due to successful game publications.

Eurojackpot’s gross gaming revenue was EUR 78.1 million and this was a 20.8 per cent increase compared to the previous year, due to an increased number of draws. A second weekly draw was added for Eurojackpot in March 2022. On the other hand, Lotto’s gross gaming revenue, EUR 64.8 million, decreased by 12.7 per cent. This decrease was influenced by factors like smaller jackpots compared to the same period the previous year and a smaller number of drawings due to the way that weeks landed on the calendar.

The gross gaming revenue for betting (EUR 61.3 million) remained almost at the same level (-1.5%) as during January-June the previous year.

Coupon games require identification

Veikkaus introduced a new sales terminal in its entire network of agents between February and April. The new sales terminal allowed Veikkaus to introduce an identification requirement in coupon games starting from 15 May 2023.

The identification requirement facilitates the more effective prevention of harm caused by gambling, strengthens age limit control, and establishes a safer gambling environment. The range of self-bans was diversified, as coupon games can now be prevented by game or game groups -specifically in all sales channels.

During the spring, Veikkaus also prepared for the identification requirement for scratchcards, which will enter into force at the beginning of 2024. After this, all games offered by Veikkaus will require identification.

Outlook for subsidiary Fennica Gaming is promising

The first half of the year went well for Veikkaus subsidiary Fennica Gaming Oy, which is engaged in international business-to-business, and its prospects are promising. The company’s turnover multiplied during the first half of its second year of operation and its result was as expected.

– The online scratchcards that Fennica Gaming provided for its international corporate clients have attracted great international interest. Online scratchcards developed by Veikkaus can already be played in Norway, Sweden, Denmark, Latvia and Germany. “Fennica Gaming’s corporate clients have been very satisfied with the quality of games developed by Veikkaus and the modern technology and reliability of the game engine and platform, says Timo Kiiskinen, Managing Director of Fennica Gaming.

Veikkaus Group’s interim report January–June 2023 in Finnish