January-June 2024: Veikkaus Prepared for the Overhaul of the Gambling System While Focusing on Digital and International Business
HELSINKI, Finland (September 2, 2024) — Veikkaus took major steps in the development of digital Gaming and international business in the period from January to June 2024. Fennica Gaming, subsidiary to the company, continued to grow, and Veikkaus doubled its’ investments in business development during the first half of the year . This way the company prepares for the partial multi-licence system that will be adopted in Finland in 2027, in accordance with the draft legislation on a new gambling system.
The Gross Gaming revenue fell during the reporting period due to the authentication requirement introduced to the physical point of sales ticket-based games in the spring of 2023 (-21%), the authentication requirement applied to scratchcards since the beginning of 2024 (-44 %) and, to a lesser degree, a decrease in consumers’ purchasing power. However, there have also been positive trends: the number of customers has increased, and the share of the digital channels out of the Gross Gaming revenue has risen to 60.5% (+6.6 percentage points).
Fennica Gaming signed three major client agreements during the review period: one in Brazil, one in France, and one in the State of Virginia (USA). The subsidiary currently boasts fifteen signed agreements, ten of which were in production on three different continents at the end of the review period. The turnover prospects of Fennica Gaming are bright.
January–June 2024 for Veikkaus:
- Veikkaus Group’s actual sales revenue in January-June 2024 amounted to EUR 483.8 million (-6.8% compared to January-June 2023). The actual sales revenue includes both the Gross Gaming revenue and turnover from other business activities.
- Veikkaus Group’s operating profit was EUR 246.9 million (-20.4%), while the profit was EUR 252.3 million (-19.1%). The decline was affected by major investments in the Group’s future, and the increase in Lottery tax. The Lottery tax on Gross Gaming revenue, returned to the State, increased by seven percentage points from 5% in the previous year, reaching 12% in the current fiscal year. The company paid a total of EUR 57.6 million in Lottery tax to the State, ie, EUR 31.7 million more than in the corresponding period in the previous year.
- The parent company Veikkaus Oy’s revenue from gambling operations, ie, the Gross Gaming revenue , was EUR 482.8 million (-7.0%).
- The parent company Veikkaus Oy’s operating profit for January-June 2024 was EUR 250.2 million (-20.1%), and the financial profit was EUR 255.6 million (-18.8%). As of the beginning of 2024, Veikkaus Oy’s profit is returned to the State Budget without specifically determined use objects.
- Veikkaus’ total return to the State, including the profit and the Lottery tax, equals EUR 313.2 million for January-June (-8.1%).
- At the end of June, Veikkaus had 2,535,000 registered customers. Their number went up by approx. 15,000 customers during the first half of the year.
- All Veikkaus games have been subject to the authentication requirement since 1 January 2024, when Purchasing scratchcards was included in the requirement.
“During the first half of the year, we implemented Veikkaus’ strategy as planned, investing in both business development and international growth. Fennica Gaming reached significant results during the first half of the year, and the future Outlook is bright,” says Regina Sippel , Veikkaus’ CFO.
“The upcoming overhaul of the gambling system is a great chance for Veikkaus, and we will continue to Invest in business development, and offering the best customer experience,” Sippel says.
Interim report of Veikkaus Oy January-June 2024(in Finnish)
SOURCE: Veikkaus’ media service.
