Sweden’s Svenska Spel reported a 7.6% year-on-year rise in net profit during the first half of 2025 despite posting a drop in revenue on the back of declines across its retail slot machine and sports betting businesses.
However, after excluding discontinued land-based operations in Q2, net profit dropped 30.9% from the previous year to SEK345 million.
This was in part due to the increased gambling tax implemented in Sweden in July 2024.
The 18% tax rate resulted in an operating profit decline of 17.2% to SEK545 million in Q2. Profit before income tax was 19.1% lower than the previous year at SEK541 million, with profit from continued operations down 16.6% to SEK423.
However, Svenska Spel said this had been a “stable” period for the group.
“We deliver a stable quarter in an environment characterised by rapid change and increased uncertainty. Our work has a clear focus on the group’s strategic goals: to have the gaming market’s most satisfied customers, ensure that our customers play healthily with us and drive long-term sustainable growth,” Svenska Spel CEO Anna Johnson said of the period’s results.
Turning to revenue, the Sport and Casino business saw revenue dip 1.2% to SEK498 million due to the absence of a major football event, like Euro 2024 last year. Vegas revenue also decreased 12.8% to SEK82 million. However Tur (lottery-based games) revenue increased 1.5% to SEK1.26 billion, helped by Easter falling later than in 2024.
Casino Cosmopol a thing of the past for Svenska Spel
The operator’s final Casino Cosmopol land-based casino business was shuttered in mid-H1. Several locations had already closed in January 2024, as well as another venue in Sundsvall in 2020, with the final Stockholm site shutting in April this year.
This followed the Swedish government voting to abolish land-based casinos in the country. Svenska Spel said it supported the decision, having reported declines in profitability and visitor numbers in recent years.
As the final location closed halfway through H1, it was reported as discontinued operations. This meant it was not included in the net gaming revenue total for the period.
H1 revenue flat, RG measures impact physical slots
Looking at H1, net gaming revenue in the six months to 30 June hit SEK3.69 billion ($380.1 million), Svenska Spel said. This is 1.1% less than the SEK3.73 billion reported in the corresponding period last year.
Svenska Spel posted revenue growth in one of its three operating segments. Revenue in the Tur lottery segment edged up by 0.2% year-on-year to SEK2.48 billion. The operator said this was due to the continued success of Eurojackpot and the launch of its new Lyckoplatsen game.
However, declines were noted across its Sport and Casino business. Revenue fell 0.4% to SEK1.05 billion due to what the operator described as a “weaker sports offering”. On the flip side, it said sports betting under the Oddsbet brand and online casino developed positively, helped by “strong” customer growth.
The largest revenue drop was reported within the Vegas gaming machine segment. Here, the operator said revenue was down 19.5% year-on-year to SEK157 million. It put this partly down to stronger responsible gambling measures in Sweden, as well as the current economic situation in the country.
Higher gambling tax fails to halt H1 profit growth
Looking towards the bottom line in H1, group operating profit topped SEK1.18 billion, up 2% from the previous year.
This year-on-year improvement was partly due to approximately SEK205 million in non-recurring costs in 2024 not being present in H1 2025. These costs were attributable to restructuring within the group and a previously announced sanction fee from regulator Spelinspektionen.
In H1 the tax impact resulted in almost SEK170 million in additional tax commitments, which in turn pushed operating expenses to SEK1.36 billion.
That said, profit before income tax was only down 1.5% to SEK1.21 billion. After this tax, profit from continuing operations in H1 reached SEK952 million, up 0.9%. After excluding discontinued operations, net profit for the half year was SEK854 million, an increase of 7.6% year-on-year.
“Within the first two target areas, the customer satisfaction index and healthy revenue share are at a stable and high level. In terms of sustainable growth, net gaming revenues for both lotteries and sports betting increased during the quarter,” Johnson added.
Sweden’s tax hike hit Svenska Spel hard in Q2 as net profits dropped 30.9%. The operator flagged a period “characterised by rapid change and increased uncertainty”.