New Svenska Spel CEO targets growth despite NGR falling 5% in Q2
Anna Johnson says lower costs following organisational changes allows for future investment as lottery arm continues to go from strength to strength
Svenska Spel CEO Anna Johnson has targeted investment in transformation and growth despite net gaming revenue (NGR) falling 5% in Q2 2024.
The state-owned Swedish operator saw NGR fall 5% year on year (YoY) from SEK2bn to SEK1.9bn, which it said was because of safer gambling measures and land-based closures.
In addition, online sports betting and casino NGR dropped 2% to SEK504m, though Euro 2024 had a positive impact on revenue in June.
Tur, the firm’s lottery arm, reported a 3% YoY rise in NGR to SEK1.2bn. It accounted for 66% of Q2 NGR for Svenska Spel, with sports and casino in second with 27%.
Operating profit for the quarter came in at SEK640m, a 17% YoY rise which was put down to the adjustments made in the firm between 1 October 2023 and 31 March 2024.
That period saw Svenska Spel conduct a review of business operations, leading to an internal restructure, the closure of casinos in Malmö and Gothenburg and a reduction in costs.
Notable highlights of the quarter include Johnson starting her role as president and CEO as well as the sport and casino division launching a new sports betting platform, Oddset.
The number of employees at the operator dropped from 1,561 to 1,068 because of the internal restructure.
Johnson said of the organisation’s performance: “The effect of the changeover is now visible for Svenska Spel in the form of lower costs, improved results and a strengthened operating margin.
“It frees up space going forward for important investments in transformation and growth.”
Also included in the Q2 report, Svenska Spel detailed its financial results for H1 2024 as NGR fell 3% YoY to SEK3.8bn.
NGR at Tur rose 5%, while operating profit slumped 18% because of the two casino closures in Gothenburg and Malmö during Q2.