SVENSKA SPEL - Interim report January – June 2025: Growth for Eurojackpot and Oddset in stable quarter

The second quarter of the year is stable with growth for Eurojackpot and Oddset. The last Casino Cosmopol has been closed after the Riksdag's decision on a legislative change that means that land-based casinos will no longer be offered in Sweden. The challenges for the Vegas slot machines remain, which negatively affects the group's revenue. This is evident from Svenska Spel's interim report for the second quarter of 2025, which is presented today.

– We have 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. Within the first two target areas, the customer satisfaction index and the share of healthy revenues are at a stable and high level. In terms of sustainable growth, net gaming revenues for both Eurojackpot and Oddset increased during the quarter, says Anna Johnson, President and CEO of Svenska Spel.

On April 25, Casino Cosmopol in Stockholm was closed due to the legislative change that comes into force at the turn of the year, which means that land-based casinos may no longer be offered. Svenska Spel decided to liquidate after receiving a changed ownership instruction, and the liquidation is now underway in an orderly manner, while the sales process for the unique property on Kungsgatan has been initiated. (Profit items, operating margin and other key figures in the interim report relate to continuing operations and exclude the land-based casino operations, which are reported as operations under liquidation.)

The Group's net gaming revenue for the quarter is SEK 1,839 million (1,837), an increase of SEK 2 million. The Luck business area has growth, while revenue is negatively impacted by continued challenges for Vending Machines and strengthened responsible gaming measures.

Net gaming revenue for the Luck business area increased by 2 percent compared to the same quarter last year. Eurojackpot continues to be the growth engine in the lottery portfolio. Large jackpots and high winnings have a positive impact on sales. A clear example is that Eurojackpot broke a sales record during the quarter, not long after last quarter's big win of SEK 1.25 billion. Triss also has a positive development and sales on Mother's Day exceeded the previous year.

Net gaming revenue for the Sport & Casino business area decreased by 1 percent compared to the same quarter last year. This was due to the negative impact of strong comparative figures in the previous year, when the European Football Championship contributed to higher revenue. However, within the business area, sports betting continues to grow under the Oddset brand – a growth that continues this quarter. The positive development for sports betting has been continuous since the launch of the new sports betting platform a year ago. The change was well received by customers, which has resulted in a larger customer base, higher customer satisfaction and increasing revenue. During the quarter, major events such as the Ice Hockey World Championship and the Eurovision final also contributed to increased customer activity, especially a clear influx of new customers.

The Vegas business area's net gaming revenue decreased by 13 percent due to the continued negative impact of strengthened responsible gaming measures and the challenging economic situation for business partners.

The Group's operating profit decreased by SEK 113 million or 17 percent to SEK 545 million (658) and the operating margin amounted to 30 percent (36). This is mainly due to the fact that the gambling tax was increased from 18 to 22 percent on July 1, 2024, which has a negative impact on operating profit.

The Group's online business continues to grow, up 5 percent this quarter compared to the same quarter last year. Online accounted for 62 percent (60) of the Group's revenue during the quarter.

More and more customers are discovering the lottery Lyckoplatsen, which was launched in the previous quarter. When playing on Lyckoplatsen, customers can choose to contribute to a good cause by supporting a non-profit organization. In this case, 10 percent of the contribution goes to the organization of the customer's choice. Collaboration with non-profit partner organizations has been expanded during the quarter, which means that customers now have more organizations to choose from.

During the quarter, Svenska Spel has awarded 78 million-sek prizes on lotteries with a total value of just over SEK 178 million. The highest prize was just over SEK 15 million on Lotto and the second highest prize was just over SEK 12 million on Eurojackpot. Sports and casino games have delivered 26 million-sek prizes during the quarter. The highest prize was over SEK 11 million on Stryktipset.

Second quarter summary

• Net gaming revenue for the Group amounted to SEK 1,839 million (1,837), which is on par with the previous year.
• Operating profit for the Group amounted to SEK 545 million (658), a decrease of SEK 113 million or 17 percent, mainly due to increased gambling tax from July 1, 2024.
• The operating margin amounted to 30 percent (36).
• Casino Cosmopol in Stockholm closed on April 25. This follows the Riksdag's decision that land-based casinos will no longer be offered from the turn of the year. The operation is being wound up and the sales process for the Hasseln 1 property in Stockholm is ongoing.
• Income statements, operating margin and other key figures in this report refer to continuing operations and exclude the land-based casino operations, which are reported as discontinued operations.
• We have noted that Svenska Spel has been present on Gotland for 50 years and how it has contributed to the region's economic development, as well as sports and club life.
• We have moved into a new office at Slussen in Stockholm.
• The Administrative Court in Linköping has overturned the Swedish Gambling Authority's decision regarding a warning and penalty fee against Svenska Spel Sport & Casino AB in a case from 2021 concerning the duty of care. The Swedish Gambling Authority has appealed the Administrative Court's ruling.

Summary of the period January – June

• Net gaming revenue amounted to SEK 3,689 million (3,725), a decrease of SEK 37 million or 1 percent, with the Vegas business area accounting for most of the decline.
• The online sales channel increased by 6 percent.
• Operating profit for the Group amounted to SEK 1,179 million (1,156), an increase of SEK 23 million or 2 percent.
• The operating margin amounted to 32 percent (31).
• Income statements, operating margin and other key figures in this report refer to continuing operations and exclude the land-based casino operations, which are reported as discontinued operations.
• The profit for the continuing operations amounted to SEK 952 million (944).
• We have launched the new lottery Lyckoplatsen where the whole of Sweden serves as the playing field and the customer can win by choosing their own lucky spot on the map.
• The Tips-SM has been held where the top three tipsters get to donate half a million to sports clubs through our sponsorship initiative Gräsroten.
• Sweden's and Svenska Spel's highest win of 1.25 billion kronor has been won on Eurojackpot.

Here you can read the Interim Report January - June 2025 in its entirety.

https://om.svenskaspel.se/koncernnyheter/delarsrapport-januari-juni-2025-tillvaxt-for-eurojackpot-och-oddset-i-stabilt-kvartal/