-
Casinos for you
Casinos Reopening Cited As Sweden’s Key Growth Driver
By Shane Addinall Feb 16, 2022 IndustrySvenska Spel announced their annual revenue for 2021 and the group had positive growth within most of their business areas. Land-based casinos are back with a vengeance and show nearly 80% growth.Svenska Spel, Sweden’s largest gaming company, reported positive year-on-year growth for the period ending December 2021. The company experienced a 6% increase in their net gaming revenue (NGR) compared to the same financial period in 2020. Group President Patrik Hofbauer notes that although land-based casinos are open, they still feel the impact of the global pandemic. Hofbauer said:
“Our operations are still strongly affected by the pandemic, but as a whole, we have good growth and profitability for the Group.”
The board of directors intends to propose a SEK 2.9 billion dividend to the company’s owner. Svenska Spel refers to themselves as ‘the entire Swedish gaming company’ because their profit flows into the Swedish economy through the treasury.
Strength In the Face of Adversity
Swedish land-based casinos opened their doors to business once more on 7 July 2021, following extended pandemic-driven closures. This meant that Svenska Spel’s retail facilities Casino Cosmopol could allow gamblers back in after 15 months of no business. The government lifted other restrictions at the end of September and business was back in full swing for the final quarter.
Fourth-quarter NGR recorded a 5% increase from the same period in 2020 and ended at SEK 2,223 million. High operating costs combined with lower NGR in December led to a drop in operating profit and the company recorded a SEK 80 million loss on the previous year’s SEK 690 million. Renewed COVID-19 restrictions in the last month of the year affected two of the company’s three business areas.
Net gaming revenues for the whole of 2021 ended at SEK 8,144 million and the entire group’s operating profit increased by 3% to SEK 2,468 million. Svenska Spel’s online verticals experienced positive growth within the final quarter, with a 5% increase from the previous year. Online gambling services account for 47% of the group’s revenue during the fourth quarter.
Brick and Mortar Casinos For the Win
The group’s land-based business, Casino Cosmopol & Vegas, improved its NGR by 78% in comparison to 2020 when the business was closed. These figures come after the facilities in Stockholm, Gothenburg, and Malmö opened their doors in July with attendance restrictions in place. These restrictions expired just before the last quarter, which contributed to the tremendous improvement in turnover.
Svenska Spel owns and operates Vegas vending machines throughout the country, and these took quite a blow from the government’s gambling restrictions until November. A major contributing factor to their poor performance is also the effect of the pandemic closures and limitations on restaurants where the machines are. However, the reopening of entertainment and expiration of gambling caps saw revenues boosted in the final three months of the year.
The 8% revenue decline experienced in the group’s sport & casino business area is due to the number of cancelled sports matches, according to Svenska Spel. Tur business experienced a 2% increase in gaming revenues during the last quarter, indicating stable development within the business area.
Meanwhile, Svenska Spel players raked in a total of SEK 82 million during the fourth quarter, while ticket sales exceeded SEK 335 million for the period.
You might also like