Svenska Spel (SSP) Q3 2024 earnings summary

Executive summary

• Net gaming revenues for Q3 2024 were 1,784 MSEK, down 9% year-over-year, mainly due to casino changes and strengthened responsible gaming measures.

• Operating profit for Q3 was 627 MSEK, a 9% decrease, impacted by higher gaming tax and lower revenues in most segments.

• For Jan–Sep 2024, net gaming revenues totaled 5,613 MSEK, down 5% year-over-year, with operating profit at 1,578 MSEK, down 15%.

• Excluding one-time costs, operating profit for Jan–Sep was 1,909 MSEK, up from 1,847 MSEK, and margin improved to 34%.

Financial highlights

• Q3 net gaming revenues: 1,784 MSEK (down 9% YoY); Jan–Sep: 5,613 MSEK (down 5% YoY).

• Q3 operating profit: 627 MSEK (down 9% YoY); Jan–Sep: 1,578 MSEK (down 15% YoY).

• Q3 operating margin: 35% (unchanged YoY); Jan–Sep: 28% (down from 31%).

• One-time costs of ~330 MSEK in Jan–Sep for casino closures, restructuring, and a regulatory fine.

• Excluding one-time costs, Jan–Sep operating margin was 34%.

• Cash flow from operations Jan–Sep: 1,628 MSEK; cash and equivalents at period end: 3,027 MSEK.

Outlook and guidance

• Continued focus on responsible gaming is expected to further impact revenues negatively but is a strategic priority for sustainable growth.

• Ongoing organizational review and cost control to support future investments and transformation.