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Svenska Spel Year-end report 2021: Continued growth despite strong impact of pandemic

Year-end report 2021: Continued growth despite strong impact of pandemic - the board intends to propose a dividend of SEK 2.9 billion

When Svenska Spel sums up 2021, it is with continued growth and good profitability for the Group despite the unfavorable impact of the pandemic. Svenska Spel's Board of Directors intends to propose a dividend to the owner of SEK 2.9 billion. This is stated in Svenska Spel's year-end report for 2021, which is presented today.

- I am pleased that the board intends to propose a dividend of SEK 2.9 billion to our owner. The fact that our surplus goes to the Swedish people via the Treasury is one of the reasons why we are the entire Swedish gaming company. Our operations are still strongly affected by the pandemic, but as a whole we have good growth and profitability for the Group, says Patrik Hofbauer, President and CEO of Svenska Spel.

For the full year 2021, net gaming revenues are SEK 8,144 M (7,674), an increase of 6 percent compared with the previous year. The operating profit for the Group is SEK 2,468 M (2,395), an increase of 3 percent.

The Group's net gaming revenues for the fourth quarter are SEK 2,233 M (2,128), an increase of 5 percent compared with the same quarter last year. Operating profit of SEK 601 M (690) is a decrease of 13 percent due to higher operating costs and lower net gaming revenues than expected, as well as renewed effects of the pandemic at the end of the quarter for two of three business areas. The operating margin amounts to 27 percent (32). The online business increased by 5 percent compared with the same quarter last year, and accounts for 47 percent (47) of the Group's revenue during the quarter.

The Sport & Casino business area decreased during the quarter by 8 percent compared with the same quarter last year. This is due to a large number of canceled matches that affect the range of sports games and challenging comparative figures. For the Tur business area, the stable development continues and net gaming revenues increase during the quarter by 2 percent.

The Casino Cosmopol & Vegas business area increased net gaming revenues by 78 percent compared with the same quarter last year when all casinos were completely closed. Casino Cosmopol has been open since the beginning of July, but with very limited operations in accordance with the authorities' recommendations. The Vegas vending machines are affected by the government's temporary gambling responsibility measures during the first part of the quarter, but also by the pandemic's effects on restaurant partners.

During the quarter, Svenska Spel distributed 82 million winnings on number games and tickets to a total value of more than SEK 335 million. The ironing tip delivered the second largest profit of all time, just over SEK 15 million. The number of Top Tips has been increased from two to four coupons on the weekends, which means double coupons on Saturdays and Sundays. The Poker SM has been held with thousands of customers who settled for the SM titles in nine disciplines.

In gaming responsibility, Svenska Spel has strengthened the measures to ensure that customers do not gamble for more than they can afford. For customers who wish to gamble for high amounts, an assessment is made of financial ability in relation to the deposit limit, and there is always the possibility of reconsideration. The assessment also includes age when young people are a group that is extra important to protect. Research shows that gambling for money at a young age increases the risk of developing excessive gambling. Therefore, the lowest game limits for 18-19-year-olds are introduced.

Summary of the fourth quarter

  • Net gaming revenues for the Group amounted to SEK 2,233 M (2,128), an increase of SEK 105 M or 5%. The increase is largely explained by the fact that our land-based casinos have been open. However, renewed effects of the pandemic in December 2021 have had a negative effect on net gaming revenues.
  • Operating profit for the Group amounted to SEK 601 M (690), a decrease of SEK 89 M or 13%.
  • The result for the Group amounted to SEK 475 M (547), a decrease of SEK 72 M or 13%.
  • The operating margin was 27% (32) and is affected by both higher costs but also reduced revenues as a result of the new restrictions.
  • Svenska Spel's image value amounted to 50% (52) and is still the highest among gaming companies.
  • SEK 40 million has been paid out to 8,930 associations and their youth sports through our initiative Gräsroten.
  • The Board of Directors proposes to the Annual General Meeting 2022 a dividend of SEK 2,900 M (3,200).

Summary of the period January - December

  • Net gaming revenues for the Group amounted to SEK 8,144 M (7,674), an increase of 6%. Two of our three business areas report higher net gaming revenues compared with 2020.
  • Operating profit for the Group amounted to SEK 2,468 M (2,395), an increase of SEK 73 M or 3%.
  • The result for the Group amounted to SEK 1,957 M (1,874), an increase of SEK 83 M or 4%.
  • The operating margin was 30% (31).
  • The Sport & Casino business area has launched a new sports book with an expanded range and a better gaming experience.
  • A new sponsorship agreement has been signed with the Swedish Ski Association. The agreement runs for five years.
  • A new sponsorship agreement has been signed with Svenska Damhockeyligan AB, Svenska Hockeyligan AB and HockeyAllsvenskan AB where we want to make hockey more equal. The agreement runs for five years.
  • Svenska Spel has extended the agreement with the Swedish E-sports Association. We have expanded our investment in e-sports through our main sponsorship of the Swedish Elite Series in Counter-Strike Global Offensive.

Here you can read Year-end report 2021

https://om.svenskaspel.se/koncernnyheter/bokslutskommunike-2021-fortsatt-tillvaxt-trots-kraftig-paverkan-av-pandemin-styrelsen-avser-att-foresla-utdelning-om-29-miljarder-kronor/ .

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