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Svenska Spel H1-2016 Numbers

FLAT PERFORMANCE FROM SVENSKA SPEL IN H1-2016
 
Swedens state-run online and land gambling company bemoans tough competitive conditions.
 
Swedens state-run online and land gambling group Svenska Spel has posted a mediocre and largely flat set of numbers for the first half of 2016, bemoaning tough competitive conditions in the market.
 
Highlights of the report include:
 
* NGR up 1 percent year-on-year at SEK4.4 billion (Euro 463.4 million);
 
* Operating profit up 0.9 percent y-o-y at SEK2.4 billion;
 
* Net income up 1.2 percent to SEK2.4 billion, with a slightly lower operating margin of 22.1 percent;
 
* Online operations accounted for most of the growth, increasing 9 percent in the second quarter, while sales via mobile phones increased by 53 percent. In June, the company launched an app for the Euro 2016 football championship that was downloaded by over 170,000 people.
 
The company reported that the second quarter was particularly tough. with net gaming revenue down 2.4 percent on a y-o-y basis at SEK 2.1 billion, and operating income declining 4.8 percent to SEK 1.1 billion. Profit for Q2-2016 declined 3.3 percent y-o-y to SEK 1.1 billion on a lower 21 percent margin.
 
Chief executive officer Lennart Käll reported to shareholders:
 
“We increased net gaming revenue overall for the first half compared with the previous year. However, we saw a drop in growth, particularly during May, which affected the second quarter negatively, but from June we once again see growth.
 
“We will continue to strengthen customer relations further and increase the pace of innovation by delivering new experiences, new products and services."



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