Danske Spil Reports 11.1% Net Profit Rise in Q1
Danske Spil, the Danish national lottery and gambling operator, has reported an 11.1% year-on-year increase in net profit for the first quarter, largely driven by the sale of its 60% stake in the fantasy sports platform Swush.
Financial Highlights
This strategic divestment, coupled with robust lottery performance, helped offset weaker results from its digital and gaming hall operations.
Group Revenue:
- Total Revenue: DKK1.24bn (£140.5m/€166.2m/$178.3m), a 2.2% increase from DKK1.22bn in Q1 of the previous year.
- Net Profit: An 11.1% rise year-on-year, attributed significantly to the sale of Swush.
Lottery Performance:
- Danske Lotteri Spil Revenue: Up by 4.9% to DKK711m.
- Contributing Factors: High jackpots in the Eurojackpot game, supported by additional draws and increased jackpot sizes.
Danske Licens Spil (Sports Betting and Online Casino):
- Revenue: Fell by 1.0% to DKK393m.
- Casino Growth: An increase in customer numbers bolstered casino revenue.
- Sports Betting Decline: Affected by fierce competition and weak margins.
- Retail Impact: The mandatory introduction of player ID cards in 2021 has continued to suppress the retail market.
Strategic Insights
The sale of the Swush stake was a notable move for Danske Spil, bringing in significant revenue and contributing to the overall profitability of the company.
Despite the dip in revenue from sports betting and online casino operations, the steady performance of the lottery segment has been a critical factor in maintaining overall growth.
Danske Spil is likely to continue focusing on its lottery operations, which remain a strong revenue driver. The company may also explore further strategic divestments or investments to optimize its portfolio and enhance profitability amidst a challenging market landscape.
