Svenska Spel identifies land-based resumption as a critical growth driver in 2021

Svenska Spel identifies land-based resumption as a critical growth driver in 2021

The planned reopening of land-based gambling facilities across Sweden in July 2021 has been noted as a major element in Svenska Spel’s “continuing development and profitability.” 

This comes as the company reports net gaming revenue of SEK 2.23 billion for the fourth quarter of 2020, a 5% increase over the SEK 2.12 billion reported in the previous quarter. However, it is noted that the pandemic’s resurgent effects in December 2021 had a detrimental effect.

Svenska Spel expects business to return to normal

Casino Cosmopol’s land-based casino operations in Stockholm, Gothenburg, and Malmö reopened on July 7 after 465 days of mandatory shut down due to the COVID-19 outbreak. This was followed on September 29 by the lifting of any remaining restrictions, which meant that gaming properties no longer had restrictions on the number of guests allowed on the property at one time or at gaming tables. All slot machines have been reactivated, restoring full capacity to the poker rooms and eateries. However, as a result of increased COVID-19 transmission, the country reinstated stronger infection control measures.

Operating profit decreased 13% to SEK 601 million in Q4 (2020: SEK 690 million) due to greater operating costs and lower net gaming revenues than planned, as well as resurgent pandemic effects in two of the company’s companies three business sectors at the end of the quarter. Svenska Spel’s internet business gained 5% year on year and continues to account for 47% of overall income.

The company’s Casino Cosmopol and Vegas business division increased 78% year on year, owing largely to the aforementioned reopening methods for Vegas vending machines affected by the government’s temporary gambling responsibility restrictions. Elsewhere, the sports and casino business section declined by 8% year over year, owing to a large number of canceled matches, which impacted the range of available sports games and complicated comparable numbers, while the Tur lottery segment increased by 2%.

Quotes from the Press Release

The company is glad that the board intends to propose a dividend of SEK 2.9 billion to our owner,” Svenska Spel President and CEO Patrik Hofbauer commented. He continued by stating that one of the reasons we are the largest Swedish gaming industry is because our surplus is distributed to the Swedish people via the treasury. Although the epidemic continues to have a significant impact on its business, the group as a whole is growing and profitable. For the full year, NGR climbed by 8% to SEK 8.14 million (2020: SEK 7.67 million), with operating profit increasing 3% to SEK 2.46 million (2020: SEK 2.39m).

About Lou De Aguila

Lou Aguila is a news and feature writer for Golden Casino News. For over a decade, Lou has published news and featured articles for some of the most reputable sports betting and online casino sites in the world, including BetNow.UK, VegasOdds, and BWin. Apart from being a hardcore live casino punter, he also covers sports stories in North American leagues from time to time.