Svenska Spel reports flat NGR YoY as tax rate hike adds SEK150m burden

Svenska Spel has recorded a flat year-on-year (YoY) increase in net gaming revenue (NGR) for Q4 2024, which the operator said was due to the regulator’s increased responsible gambling measures.

NGR for the quarter stood at SEK2.1bn (£156.9bn) in Q4, the same as the figure recorded for Q4 2023, with the operator noting it was “on par with the previous year”.

Breaking NGR down by vertical, online sports betting and casino accounted for SEK574m, down SEK2m against Q4 2023.

Tur, the firm’s lottery arm, reported growth of 7% YoY, or an increase of SEK92m, to SEK1.4bn. The operator attributed this to the growth of Eurojackpot and the development of its scratch card, Triss.

Land-based operations in the Casino Cosmopol arm saw revenue decline 66% YoY to SEK31m as only the casino in Stockholm was open during the reporting period.

Operating profit for Q4 amounted to SEK535m, rising 10% YoY from SEK485m in Q4 2023. Bosses said this was due to lower operating expenses.

Those lower operating expenses included a reduced workforce, with the state-owned business’ headcount sitting at 1,095 at the end of the year compared to 1,443 at the end of 2023.

Management also said that despite the GGR tax hike from 18% to 22%, adding a further SEK85m burden, the lower expenses elsewhere meant operating margin rose to 25%.

Also reporting for full-year 2024, group NGR dropped from SEK8bn to SEK7.7bn, a 4% YoY fall.

Operating profit for the reporting period amounted to SEK2.1bn, down 9% YoY. While the business was able to stave off headwinds comparatively in Q4, the full-year held more of the impact.

Svenska Spel added that the reorganisation costs, payments related to shutting land-based operations and a SEK150m hit from the new tax rate all played a key role.

Commenting on the operator’s latest results, president and CEO Anna Johnson noted that sport and casino customers were growing and, alongside increases in operating profit, the operator was in a better place for future investments.

She said: “Svenska Spel has had a strong end to the year. During the fourth quarter, the positive development for the lottery business continues with the highest growth ever, and within the sport and casino business area, the number of customers is increasing.

“At the same time, the proportion of healthy revenues is at a high and stable level, which shows that the increased focus on sustainable gaming is having the intended positive effect.

“2024 has been a year of major changes for Svenska Spel and a weak economy in Sweden. It is a message of strength that the year ended with a quarter with revenues in line with the previous year and improved operating profit linked to lower operating costs.

“The financial result for the full year is affected by both our work to increase sustainable gaming, as well as one-off costs for the reorganisation of Svenska Spel and the closure of two casinos.

“However, excluding the one-off costs, both operating profit and operating margin were higher than the previous year, and exceeded our financial targets.

“This shows that we are well equipped for the investments we need to make going forward,” Johnson added.

In its report, Svenska Spel also noted the upcoming departure of CFO Eva Stoppel in July 2025, with the original announcement having been made last month on 20 January.

The post Svenska Spel reports flat NGR YoY as tax rate hike adds SEK150m burden first appeared on EGR Intel.

 Operator points to increased responsible gambling measures as reason figure for consistent NGR, while operating profit over 2024 takes a hit from multiple factors
The post Svenska Spel reports flat NGR YoY as tax rate hike adds SEK150m burden first appeared on EGR Intel.