Svenska Spel announced its financial results for the fourth quarter and the full year of 2024.
Fourth Quarter of 2024
In the fourth quarter of 2024, Svenska Spel's total net gambling revenue reached SEK 21.3 billion (USD 2.0 billion), a slight increase of 0.2% year-over-year.
Among the various business segments, only Tur saw an increase in net gambling revenue compared to the same period last year, up by 6.8% to SEK 14.4 billion. Sports and casinos decreased slightly by 0.3% to SEK 574 million, while Las Vegas dropped by 24.1% to SEK 82 million.
The operator stated that the net gambling revenue from sports and casinos, as well as Las Vegas, was affected by enhanced responsible gambling measures and the challenging economic conditions faced by commercial partners.
Casino Cosmopol's turnover decreased by 65.9% to SEK 31 million. This was largely due to the fact that only one casino was operational this quarter, compared to three in the same period last year.
Due to reduced operating expenses, operating profit increased from SEK 485 million in the fourth quarter of 2023 to SEK 535 million in the fourth quarter of 2024.
The operator also highlighted that its sponsorship program Gräsroten distributed SEK 35 million this quarter to support youth sports and club life.
Fiscal Year 2024
Throughout the year, net gambling revenue decreased by 3.6% to SEK 77.4 billion.
Tur was the only business unit to achieve growth in the fiscal year 2024, with net gambling revenue increasing by 4.3% to SEK 51.4 billion, setting a record high for this business area. This also reflects growth for four consecutive quarters.
Looking at other business areas, Cosmopol Casino's net gambling revenue saw the largest decline of the year, down 65.1% to SEK 165 million. This was mainly due to the closure of casinos in Gothenburg and Malmö.
Operating profit decreased from SEK 2.33 billion in 2023 to SEK 2.11 billion in 2024. This was attributed to higher one-time costs, approved expense provisions, and the restructuring of Svenska Spel itself. It was also mentioned that the gambling tax in Sweden increased from 18% to 22% during the summer, negatively impacting operating profit.
Worth noting: Svenska Spel achieved a 93.9% healthy income share in the fourth quarter of 2024.
Comments
Anna Johnson, President and CEO of Svenska Spel, stated: "This fourth quarter, the company's revenue was on par with last year, and operating profit improved due to reduced operating costs, demonstrating our strength.
"Despite 2024 being a year of significant restructuring for Svenska Spel and the weak Swedish economy, the situation remains as such.
"This shows that we are well-prepared for the investments needed in the future. I am pleased that the board proposes a dividend of SEK 1.6 billion to the owners. Giving back to society is an important part of Svenska Spel's mission.
"As Sweden's largest gambling company, we donate all profits to the treasury, thereby benefiting society. In addition to sponsoring Swedish sports and supporting gambling problem research, this money also benefits society."
