Paf reports 7% profit decrease despite strong online growth
Åland-based operator’s 2016 report reveals a rise in online GGR from €76.4m to €81.9m
Paf’s full-year profits slumped 7% year-on-year to €15.2m in 2016, despite the Åland-based operator reporting solid online revenue growth in the 12-month period.
Online revenues for the year-ended 31 December 2016 increased 7% year-on-year to €81.9m, which coincided with a 7% revenue decrease to €31.5m from its predominantly ship-based physical operations.
Profits were dented by an increase in personnel costs from €22.6m to €25m, with customer support and the marketing organisation in Spain being carried out in-house as of September.
A rise in employee numbers and temporary employee turnover also accounted for the rise in costs.
Despite the decrease in profits, overall revenue rose from €110m in 2015 to €113.5m last year which the operator said was largely organic growth.
CEO Christer Fahlstedt said: “We have been able to keep the momentum and deliver a relatively strong result, considering the circumstances.”
He added: “Aside from a few non-recurring items, the operative result of 2016 is in line with the strong trend of the previous year.
“Paf’s product has gained competitive edge during the year, and we have many exciting innovations and new functions in the pipeline for 2017.”
Approximately €20m of the state-owned operator’s profits was injected into public services to be distributed to beneficiaries by the Åland regional government.
The year-end report revealed a predicted increase in profits for 2017 created by active cost control, while the sale of Italian subsidiary Winga.it to LeoVegas in February is also expected to boost revenues for 2017.
Fahlstedt succeeded former CEO Anders Ingves in June 2016, instigating a seismic shift within the management team. Per Sahlberg was taken on as new CFO, with former finance chief Johan Rothberg named vice director.
In November Goran Ristic came on as marketing chief and Kim Johansson also joined the team.