Paf reports record profit of €55m for FY 2023

Paf reported revenue of €177.1m (£151m) for full year (FY) 2023, a 7% year-on-year (YoY) increase from €165.7m recorded a year prior.

The growth in revenue led to a record high profit of €55.1m for the firm, up from €44.8m for FY 2022, the best result in Paf’s 57 years of operation.

Gaming revenue for the online arm of the firm increased from €142.1m to €153.8 for the year, which the firm attributed to record numbers of active customers and strong growth in the Swedish, Spanish and Latvian markets.

Active users jumped 27% YoY, from 483,595 in 2022 to 615,557 in 2023. Paf expects that number to increase further in 2024 due to its effective marketing and platform tech development.

Operating profit for the year increased 22% YoY to €59.2m, up from €48.5m for the equivalent reporting period in 2022.

Zero customers suffered losses of €30,000 or over, with Paf saying its investment in responsible gaming and subsequent lowering of its loss limits prevented large losses for customers, despite the inevitable dampening effect on revenue.

Just over a quarter, 27%, of customers ended the year in profit, while the majority (72%) suffered losses of less than €8,000.

In 2023, Paf reduced its loss limits for all players to €17,500 per 12 month period, which was soon followed by the introduction of a specific loss limit of €1,800 for young players aged 18-19.

Then, in spring this year, the firm announced a reduction in the loss limit for customers aged 20-24, from an existing €10,000 to €8,000 per year in all markets.

On that decision, CEO Christer Fahlstedt said: “This is an important continuation of the direction we are striving to take at Paf for our responsible gaming.

“Now young customers can only gamble with us for sums that are at more sustainable levels and within the framework of the customer segment we have defined ourselves as the green segment.”

Gaming revenue for Paf’s ship casinos and land-based sector decreased from €23.5m to €23.3m, yet ship passenger numbers rose by 4% YoY.

Commenting on the full year results, Fahlstedt said: “We can be happy and proud with the past year.

“We have gained a larger customer base and the number of active customers has increased by 27%, which explains some of it, but we are also well aware that the temporarily low gaming taxes in Finland have helped the result.”

Jan-Mikael von Schantz, Paf board chairman, confirmed €31.4m will be distributed via Paf funds to third-sector organisations that promote youth work, environmental activities and culture, to name a few.

Paf also shared that Agile owner Daniela Forsgård has been appointed to the board while Birgitta Eriksson, who has served on the board for many years, has stepped down.