Sweden’s state-run betting monopoly reported falling revenue and profits in Q3 but expressed confidence in its ability to compete with new international competition in 2019.

This week, the state-owned Svenska Spel monopoly reported net gaming revenue of SEK2.12 (US$233m) in the three months ending September 30, a 2.3% decline from the same period last year. Profit was similarly down 2.2% to SEK1.17b.

The company blamed the shortfall on its Vegas video lottery terminal business, which reported revenue falling one-fifth. The decline spoiled an otherwise solid performance by Svenska Spel’s digital operations, which reported sales up 22% to SEK675m.

Digital sales accounted for nearly 32% of group revenue, up from 25% in Q3 2017. The company credited the surge to strong mobile growth (+42%), thanks to overall consumer trends, an improved user interface and enhanced mobile banking facilities.