Positive final quarter returns company to growth, but can it last?
Sweden's partly state-owned gambling semi-monopoly Svenska Spel has enjoyed a positive final quarter to its year, enabling a limited return to growth.
The quarter delivered revenue up 1.6 percent to SEK 2.43 billion, although substantial development expenses reduced the margin to 21.3 percent – down a percentage point.
Over the full year NGR (net gaming revenue) was up only 0.2 percent marginally, reaching SEK8.96 billion, with net income rising 0.9 percent to SEK4.8 billon on slightly improved (0.4 percent) margins of 22.2 percent.
Digital revenue was among the brighter spots in the full year numbers, recording an 11 percent rise to SEK1.7 billion, with mobile producing a stellar 59 percent increase in contribution despite the company losing market share to competitors who additionally offer internet casino gaming.
Over 2015 Svenska Spel lost market share and is now down to 42 percent on land gambling market share and 20 percent in online market share.
With government talk of a more open (and therefore more competitive) market for Sweden, particularly in the online context, Svenska Spel management has renewed its call to be permitted to offer online casino action.
Online Casino News Courtesy of Infopowa