Global Gaming profits nosedive amid “turbulent” 2019
Chief executive reveals 55% reduction in staff but pledges to return operator to profits in 2020
Global Gaming has revealed 2019 profits declined by just under 200% as the Malta-headquartered operator reported record drops in its full-year financial figures.
Company profits dropped to a negative SEK121.9m (-£9.8m) during 2019, from a prior 2018 positive figure of SEK125m (£10m).
Full-year gross gambling revenue dropped to SEK412m, a decrease of 55% year-on-year when compared to the prior year figure of SEK915m.
Marketing expenditure and operating costs both halved during the year following the withdrawal of its Swedish gambling licence in June by the Swedish Gambling Authority.
Speaking about the SGA’s decision, Global Gaming CEO Tobias Fagerlund said he was “dissatisfied and disappointed” given the company had rectified the errors highlighted in its investigation.
“A decision like that made by the Gaming Inspectorate has enormous consequences for a company group like ours. Our Maltese subsidiaries ceased their Swedish operations immediately and we lost most of our revenue overnight,” Fagerlund said.
Global Gaming has made several legal challenges against the revocation of its Swedish licence, winning a ‘review permit’ that will see its case reviewed by Sweden’s highest court.
The Malta-headquartered operator made several changes following the revocation, reducing its employee headcount from 200 employees in Q2 2019 to just 90 employees by Q4 2019.
In July, Global Gaming agreed a marketing-led deal with fellow operator FinnPlay, which would allow the firm to operate the NanoCasino brand under the latter’s Viral Interactive operating licence.
However, in March, Viral Interactive confirmed it would exit the Swedish and UK markets by terminating all of its B2B agreements, including the one it signed with Global Gaming.