Svenska Spel Reports Modest Q3 Revenue Growth as Brand Spending Reduces Operating Profit

Svenska Spel posted third-quarter net gaming revenue of SEK1.898bn (€170m), a 1% increase year on year. Operating profit fell 9% to SEK656m (€59m) and the operating margin contracted from 38% to 35%. According to SBC News, the profit reduction reflected higher expenditure on core brand development and a group-wide IT migration to cloud-based systems.

The spending is designed to improve customer experience, raise operational efficiency and support longer-term growth. Year-to-date net gaming revenue reached SEK5.741bn (€516m), up 3%, while operating profit rose 2% to SEK1.932bn (€173m) with the margin steady at 34%.

Divisional Results

The Sport & Casino division recorded the strongest growth, lifting Q3 revenue 6% to SEK516m (€46m) and nine-month revenue 6% to SEK1.633bn (€147m). Oddset benefited from the football World Cup, which exceeded internal targets in its final weeks. Lottery division Tur increased Q3 revenue 1% to SEK1.316bn (€118m), with Lotto and Triss driving gains through greater grocery-store visibility and an anniversary ticket. Lottery remains the largest segment, delivering year-to-date revenue of SEK3.909bn (€351m), up 3%.

CEO Outlook

Chief Executive Officer Anna Johnson stated that the business continued to deliver against a competitive market backdrop. Johnson said: “During the third quarter, the positive development continued with growth and good profitability. This shows that our focus on sustainable growth is delivering results.” She added that the next phase combines technology investment with the largest brand renewal since Svenska Spel’s formation in 1997, while the operator takes market share in both licensed and lottery segments. Profits remain on track for the full year.

Reporting: SBC News

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