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Svenska Spel 2013 interims report

Svenska Spel interims report increased competition
Sweden's state gambling group Svenska Spel reported that profit after interest and tax for the first half of 2013 amounted to SEK 2.522 billion, an increase of 4.2 percent compared with same period in 2012 despite growing competition from foreign unlicensed companies in the online environment.
The gambling group reported a marginal 0.6 per cent fall in Q2 revenues to SEK 2,301 million, following poor performances by the group’s Casino Cosmopol land casino and Vegas-branded gaming enterprises.
The company’s sports betting and lottery division was the sole segment to post a year-on-year increase during the second quarter.
Chief executive officer Lennart Käll said that despite the threat of foreign companies Svenska Spel remains a strong market contender with a focus on products that deliver better margins and lower risk, enabling the company to improve its operating margins.
Käll reported:
*     Net gaming revenue for the group rose to SEK 4,781 (4,775) million, an increase of 0.1 percent.
*     Net income for the Group amounted to SEK 2,522 (2,419) million, an increase of 4.2 percent.
*     Net gaming revenue of Sports and Lotteries division increased revenues during the half with SEK 99 million (3.1 percent) compared with the same period last year.
*     Operating margin was 22.0 (21.2) percent.
*     Operating profit for the Group was SEK 2,481 (2,394) million, an increase of 3.7 percent.
*     Continued decline in net gaming revenues on slots - down 9.5 percent.
*     3.8 million has been repaid to customers who have lost money due to the use of unauthorized software (bots) by 15 players which violated the company's online poker rules.
*     Management has decided to fund a research professorship for addictive gambling.
*     Svenska Spel is collaborating with the Swedish Sports Confederation (RF) in the fight against match-fixing and sports manipulation.

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