Veikkaus: Interim report Q2/2018: Veikkaus operates in a dynamic environment

in Lottery

President and CEO Olli Sarekoski: "Veikkaus is preparing for large-scale changes in the coming years. The drastic changes in the operating environment, the ever-accelerating international competition, and our planned shift towards comprehensive identification on decentralised slot machines require us to carry out special measures and development work.

Interim report Q2/2018: Veikkaus operates in a dynamic environment

 

Julkaistu 28.08.2018 15:24

  • Turnover EUR 1 587.2 million (-0.3%).
  • Profit EUR 505.5 million (+2.5%).
  • 57.1% of the turnover came from the POS and 42.9% from the digital channels.
  • According to preliminary analyses, the game restriction concept covering online gaming has helped to prevent problem gambling successfully.
  • The turnover of Lucky Games (EUR 610.8 million) increased by 5.6 percent over the previous year. The large jackpots and the 90-million-euro prize landed in Loimaa, Finland, boosted the sales of Eurojackpot (EUR 159.4 million, +37.5%).
  • 45.1% of the gaming took place identified (+4.5 percentage points).

President and CEO Olli Sarekoski:

"Veikkaus is preparing for large-scale changes in the coming years. The drastic changes in the operating environment, the ever-accelerating international competition, and our planned shift towards comprehensive identification on decentralised slot machines require us to carry out special measures and development work.

In 2018, we are revising our strategy to secure our competitiveness in the upcoming future changes in the operating environment and the rapidly accelerating competition. The competition over customers is toughest in the digital channels; therefor success in digital business will be one of the cornerstones of the revised strategy. The total gambling market in Finland amounted to an estimated EUR 981 million (+1.9%) in terms of GGR in the period between January and June. Veikkaus’ share of the total market was ca. 89 percent.

The prevention of gambling problems is important to Veikkaus, and we take a positive stand towards the Ministry of the Interior bill on the transition to comprehensive identification on decentralised slot machines from the beginning of 2021 onwards.The bill concerning the amendment of the Lotteries Act was submitted for consultation at the end of June. However, the transition period given in the bill does entail a certain risk to the funding of the beneficiaries.According to our estimates, moving to comprehensive identification on decentralised slot machines will reduce gaming proceeds, depending on the gaming restriction concept. The impacts of the different proposed implementation options on the gaming revenue would amount to 78–170 million euros in the year 2021 according to our estimates. In addition to this, the lottery tax and our partners’ retailer commissions would be affected significantly.In order to minimise the negative impacts, it is of primary importance that we can rapidly adopt effective means of promoting identified gaming and secure our opportunities to develop gaming operations in digital business.

At the end of last year we launched a gaming restriction concept covering online gaming, which is unique even in the international setting. The transition period of adopting the concept ended at the end of March. According to our preliminary estimates, the gaming and money transfer limits have helped us prevent problem gambling and protect high-risk gamblers. The gaming restriction concept reduced the growth of the GGR in Veikkaus’ digital channel by ca. EUR 10–15 million during the first six months of the year.In the future it will be important to monitor whether the restriction concept affects the gambling problems as intended, and we will also need to make use of our increasing understanding whilst developing the tools of gaming control further.

During the second quarter of the year, both Lotto and Eurojackpot boasted exceptionally large jackpots. Eurojackpot, in particular, increased in popularity during the jackpot rollover, which reached 90 million euros in May and June, as well as the 90-million-euro prize that was landed in Loimaa, Finland, in the spring.”

Veikkauksen mediapalvelu, puh. 09 4370 7000 (kello 8-22), www.veikkaus.fi/yritys

 

Veikkaus on kotimainen peliyhtiö, ja meillä on erityinen tehtävä. Haluamme, että pelejämme pelataan turvallisesti ja maltilla. Rahapelejämme pelaavat lähes kaikki aikuiset suomalaiset, ja meillä on yli kaksi miljoonaa etuasiakasta. Pelaajien ansiosta yhteiseen hyvään kertyy yli miljardi euroa vuodessa. Pelien tuotoilla tarjotaan mahdollisuuksia parempaan elämään.