Svenska Spel CEO Patrik Hofbauer about Q1 for Svenska Spel: "We are satisfied, but can do better"

in Finance

We are happy to be on the new gaming market and that the demanding restructuring of the Group has gone well. We are pleased with this, but not with the results in the first quarter. When we can now completely put our focus forward, I am sure we can do better.

During Q1 2019, Svenska Spel's digital business grew by 14 percent compared to the same quarter last year. Sales in mobile phones increased by just over 21 per cent. In addition, net gaming revenue increased at the Sports & Casino Business Area, where the new products included online casino and horse racing, with just over 6 percent.

At the same time, we lost on the Business Area Tour (down 6 percent) and the Business Area Casino Cosmopol & Vegas (down 17 percent). In total, this meant reduced net gaming revenue, 6 percent lower than the same quarter last year.

The Group won several prestigious awards during the period. Svenska Spel was named the most sustainable brand in the gaming industry by the Sustainable Brand Index and won the Swedish Gambling Award in the category of sustainability for our care talks, where we call players we suspect are at risk and inform them of pause functions, limits and where they can get further help.

We were also delighted with the biggest game win ever in Sweden's history, a couple in Örebro won SEK 562 million at Eurojackpot. During the quarter, we continued to strengthen our offering. The Tour business area launched, among other things, the games Pacman online and Keno Xpress during the quarter, while Business area Sport and Casino launched horse games and online casino. And that's what we're going to focus on. Strengthen our products and services. Give customers even better gaming experiences, more entertainment and excitement!

The result for the quarter was affected by the division of the Group, which was both extensive and demanding. Among other things, this meant that the Sports & Casino business area had to build up a new customer database from scratch. The change work required a great deal of internal focus, made us introvert. But now we are finally up and running, all in line with new gaming regulations and competition legislation. We are happy with that. But not with the financial result for the quarter.

The tough internal job of asking whether the Group is over. Now we will be able to put full focus outwards and forwards.

PATRIK HOFBAUER 
CEO, Svenska Spel

To Svenska Spel's interim report Q1 2019

https://om.svenskaspel.se/vd-har-ordet/vd-patrik-hofbauer-om-q1-for-svenska-spel-vi-ar-nojda-men-kan-battre/