Svenska Spel digital revenue rises but market share falls due to limited offering

Sweden’s state-owned betting monopoly Svenska Spel says it returned to growth last year thanks to a surge in gambling activity during the final quarter.

Svenska Spel’s net gaming revenue was largely flat (+0.2%) at SEK 8.96b (US $1.05b) in 2015 but net income posted a slightly larger gain (+0.9%) to SEK 4.8b as margins improved 0.4 points to 22.2%, above the target the company set for the year.

The numbers were boosted by a stronger performance in Q4, which saw revenue rise 1.6% to SEK 2.43b. However, SEK 45m in development costs resulted in Q4 margins falling nearly one full point to 21.3%.

Digital revenue improved 11% to SEK 1.7b last year thanks to a 59% rise in mobile and tablet revenue. However, the company says it lost mobile market share to other Swedish-facing operators, and cited this decline as further justification for its call to expand its limited digital offering via the addition of a casino product.