Svenska Spel (SSP) Q2 2024 earnings summary

Executive summary

• Net gaming revenues for Q2 2024 were 1,872 MSEK, down 5% year-over-year, mainly due to casino changes and strengthened responsible gaming measures. Online sales grew by 8% and now represent 59% of total revenues.

• Operating profit for Q2 rose 17% to 640 MSEK, driven by lower costs following organizational restructuring and casino closures. Operating margin improved to 34% from 28% last year.

• For H1 2024, net gaming revenues declined 3% to 3,828 MSEK, with operating profit at 950 MSEK, down 18% due to 375 MSEK in one-off costs for casino closures, restructuring, and a regulatory fine.

• Excluding one-off costs, H1 operating profit was 1,324 MSEK (up from 1,162 MSEK) and margin was 35% (29%).

• The customer base grew, and the share of healthy revenues improved, reflecting a focus on sustainable gaming.

Financial highlights

• Q2 net profit was 499 MSEK, up 5% year-over-year; H1 net profit was 794 MSEK, down 19% due to one-off costs.

• Cash flow from operations for H1 was 1,185 MSEK; cash and equivalents at period-end were 2,569 MSEK.

• Equity at period-end was 1,381 MSEK, with a solidity ratio of 25% (down from 38% last year), impacted by a 1,900 MSEK dividend to the state.

Outlook and guidance

• The restructuring and cost reductions create room for future investments in transformation and growth.

• The company will start reporting the share of healthy revenues as a key metric from Q3 2024.

• The Swedish gaming market showed slight growth in Q1 2024 after a year of negative growth, with lottery as the main driver.