Danske Spil enjoys H1 profit increase bolstered by sale of DFS brand shares
State-run operator revenue for the first half of the year increases 9.3% despite lower customer spend across Euro 2024
Danske Spil has recorded post-tax profit of DKK1bn (£113m) for the first half of 2024, representing a 9.3% increase year on year (YoY), as casino and lottery operations offset a decline in sports betting.
Total revenue came to DKK2.5bn, up from DKK2.4bn in H1 2023 as the operator attributed the revenue growth to “growth in lotteries and high jackpots [in the] Eurojackpot”.
The company’s lottery arm was its biggest revenue contributor, generating DKK1.4bn – up 5.9% from H1 2023.
Danske Licens Spil, the online casino and sports betting division, contributed DKK826m in revenue, representing a slight slip from the DKK830m posted in H1 2023.
Class lottery brand Det Danske Klasselotteri added DKK123m in revenue, while land-based supplier subsidiary Elite Gaming noted revenue of DKK148m. Both divisions’ revenue growth was flat against H1 2023.
Danske Spil’s report noted the impact of this summer’s UEFA Euro 2024 tournament on its results as layers were generally betting smaller stakes thanks in part to the new responsible gambling measures introduced into the country.
The business also noted the decline in sports betting and igaming came amid “fierce competition” and a weaker retail market.
The report read: “In line with Danske Spil’s goal of working for healthier gambling habits among customers, a greater number of customers are activated in both areas compared to the same period last year, while customers generally play for smaller amounts.
“Especially during [Euro 2024], significantly more customers are activated, who play for average smaller amounts compared to the same period last year. This development is due, among other things, to the series of responsibility measures that have been introduced over the past few years.”
The state-owned operator said that government fees were the biggest expense for the first half of the year, amounting to DKK323m, down from DKK325m in 2023.
Other external costs jumped to DKK368m, from DKK351m in H1 2023, personnel costs decreased slightly YoY, by 2.6% to DKK191m, and depreciation and write-down costs came to DKK111m.
The firm also had to pay slightly more tax YoY, shelling out DKK275m as opposed to DKK259m the previous year.
During the first half of 2024, Danske Spil sold its shares in daily fantasy sports brand Swush for DKK27m.
The company first purchased its controlling stake in the brand in 2015, before selling its 60% shareholding to Ekstra Bladet in January.
Following the release of the H1 report, Danske Spil retained its full-year 2024 guidance, with revenue expected to land between DKK5bn and DKK5.02bn and a post-tax profit of between DKK1.8bn and DKK1.9bn.
Nikolas Lyhne-Knudsen, Danske Spil CEO, said: “We can look back on six months in which we have strengthened our business and increased responsibility.
“Our lotteries remain popular, and in June we were able to celebrate a lucky Dane who won the biggest prize in Danish history of DKK760m.
“Danske Spil was created to generate profit for the community, while at the same time we thoughtfully ensure that Danes can have fun with our games in a safe and secure environment. I am proud that we succeeded in this.”