Sweden’s state-owned gambling operator Svenska Spel has posted a 50 percent decline in its net profit year-on-year for the first six months of 2019.
Though the regulatory changes have been blamed for the decline in revenue as it has allowed new online gambling operators to enter the newly regulated market, Svenska Spel CEO Patrik Hofbauer has welcomed the new regulations.
During the first six months of 2019, the company grossed SEK4.1 billion, ($437 million), in profits which were 4% lower when compared with the profits earned during the same period the previous year.
Facing stiff competition from several online gambling operators, the state-owned gambling regulator also worked towards online expansion amidst regulatory changes. It’s sport and casino revenue grew by 5 percent year on year during the first six months in 2019.
Talking of the recent developments, Patrik Hofbauer, CEO at Svenska Spel, said: “The customers we lost at the end of the year as a result of splitting the group into new divisions, and the transition to separate customer accounts for each have found their way back to us. We are pleased that customers choose Svenska Spel because they appreciate our products and because it is safe and secure to gamble with.”