Svenska Spel, a Swedish gambling operator, has posted its financials for the first quarter of 2109. The gambling operator has witnessed its online business increase by 14 percent year-on-year in terms of revenues.
Also, the revenues from mobile-based operations are up significantly by 21 percent year on year. Both mobile and internet based online casino and gambling operations contribute to 36 percent of the firm’s total revenues for the first quarter.
Despite impressive growth figures for the first quarter, the company has not been able to translate the same into operating profits.
As such the company reported a 6 percent decline in the net gaming revenues between January and March 2019. The net gaming revenues for the same period previous year was 2.18bn (£177.7m) which for the current year is SEK 2.05bn (£167.3m). The company also had to part with SEK 510m (£41.4m) as gaming and income tax.
The company’s first-quarter operating profits dipped SEK 624m (£50.7m) to SEK 519m (£42.2m) from SEK 1.1bn (£89.4m).
In his statement to the press talking about the figures for the first quarter CEO of Svenska Spel, Patrik Hofbauer, said: “We are satisfied with the results based on the conditions. The transition to a new gaming market has entailed a major transition of Svenska Spel, with the adaptation of the group to the new gaming regulation and competition law. As a result, among other things, the sports and casino business area had to build up a new customer database, completely separated from the rest of the group, and that due to the division of our products, we completed a successful combination offer such as Saturday candy. These are two examples of measures that have affected the result.”
“Now we are finally up and running with the new Svenska Spel in a re-regulated gaming market. During the first quarter, we show that we are stable as the entire Swedish people’s gaming company. Our focus ahead is to strengthen our products and services further to give our customers even better experiences, but with continued consideration of our customers,” he added.
Svenska Spel is one of the leading online gambling operators in Sweden which has online gambling licenses as well as it operates a land-based casino Casino Cosmopol in the country.