Global Gaming cancels shareholder dividend after Sweden struggles
Operator’s revenues down almost one-third QoQ after re-regulation in its core market
Global Gaming’s board of directors has withdrawn a proposed shareholder dividend after citing difficulties in its native Swedish market.
The operator had previously communicated to shareholders in its 2018 report that it would distribute SEK 1.53 per share in ordinary dividends, together with a further SEK 1.47 in extra dividends from unused profits reserves.
However, Global Gaming has said it will withdraw this dividend, with that money being used instead to help the firm compete in the newly re-regulated Swedish market.
Qualifying its decision, the operator highlighted the Spelpaus.se self-exclusion register and restrictions on bonuses and deposits, together with the launch of casino products from ATG and Svenska Spel as having significant effect on all operators gaming revenues.
The firm said it needed strong liquidity to “enable the business to quickly change to the new conditions”.
Global Gaming confirmed this withdrawal will only apply to this dividend and the operator will continue to maintain its pre-existing dividend policy going forward.
Earlier this month, Swedish analysts Redeye revealed Swedish net gaming revenues fell by 33% during the first two months of 2019, with operators including Betsson, Kindred and LeoVegas all taking double-digit hits to their revenues during this period.
In its individual analysis of Global Gaming, Redeye said it faced an “uncertain” time following the regulation citing the long-term effects of platform migration and Swedish regulation as hampering its revenue growth. As a result, Redeye lowered its profit estimates for the operator for Q1 2019.
According to Global Gaming’s own preliminary numbers, the group will generate Q1 revenue of approximately 163 MSEK (£13.5m) down around 18% year-on-year and 31% quarter-on-quarter.