Svenska Spel CEO eyes further growth as net profit hikes 73.1% in Q1

Net gaming revenue for the quarter hit SEK1.88 billion (£145 million/€170 million/$194 million). This falls short of the SEK1.96 billion posted by Svenska Spel in Q1 of last year.

While Johnson referenced the decline in her notes within the operator’s Q1 report, which was published yesterday (24 April), she remains upbeat about its future prospects. Johnson explained the drop was due to two land-based casinos closing in January 2024, with only one location now remaining.

However, last month Casino Cosmopol’s fate was all but sealed with Sweden’s government voting to abolish land-based casinos in the country. Svenska Spel says it supports the decision, with casinos set to be banned from 1 January 2026.

Johnson reiterated Svenska Spel’s position on the matter, saying while the double closure last year hit Q1 figures, the closure of the final location will allow the group to focus on its other, more profitable operations.

“We have had challenges in the Casino Cosmopol business area for some time and last year we closed two casinos to reduce losses,” Johnson said. “Our last casino will be closed down and that part of Svenska Spel’s social mission will end from 2026.

“This is sad, especially for our casino employees who have made fantastic contributions in a challenging time. The closure will entail costs when it is implemented, but for the future it will give us the opportunity to focus on growth in our other operations.”

Later Easter hits Q1 lottery performance

Breaking the group’s performance in Q1, Svenska Spel again drew most revenue from its Tur lottery segment. However, revenue here slipped 1.1% to SEK1.22 billion, which Svenska Spel put down to Easter being later this year. The operator said Easter is a “major holiday” for lottery, and last year it fell in late March, within Q1.

Elsewhere, revenue from the Sport & Casino business edged up by 0.4% to SEK551 million, helped by an increase in sales of its Oddset product.

Revenue from its Vegas gaming machines segment dropped 25.7% to SEK75 million. Svenska Spel put this down to players spending less in response to its responsible gambling efforts.

Finally, the soon-to-close Casino Cosmopol location in Stockholm generated SEK26 million in revenue. This falls 61.8% short of Q1 last year, during which the two other locations were open for part of the quarter.

As for how customers were gambling, some SEK1.18 billion of all revenue came from online, a rise of 6.9%. Of this, 53% was attributed to mobile gambling. Agent revenue amounted to SEK602 million, down 11.6%, while restaurants and bingo hall revenue fell 25.7% to SEK75 million. Casino Cosmopol drew the remaining revenue in Q1.

Net profit up 73.1% amid restructuring efforts

Turning towards the bottom line, operating profit almost doubled to SEK609million, despite lower revenue. This was helped by savings within personnel following the closure of the two Casino Cosmopol. Svenska Spel also noted higher costs in Q1 of last year in relation to the double closure.

Pre-tax profit after financial items topped SEK641 million, up by 72.8%. After paying SEK132 million in tax, Svenska Spel was left with a net profit of SEK509 million, some 73.1% more than the previous year.

“Through last year’s major changes, including reorganisation, we have created space for investments in our focus areas – growth, sustainable gaming and transformation,” Johnson said.

“The fact that we have space for investments is also proof that we are doing the right things and part of our strategy to create long-term sustainable value.”

 Svenska Spel CEO Anna Johnson has talked up opportunities for new investments across the group after net profit rocketed 73.1% during Q1, although revenue took a 4.1% hit following the closure of two Casino Cosmopol venues early last year.