Danske Spil Reports Growth in First Half of 2024
Danske Spil, Denmark’s state-owned gambling operator, has reported revenue of DKK2.55bn (€341.2m) for the first half of 2024, reflecting a modest 3 per cent increase compared to the same period last year. This growth was driven primarily by the company’s core lottery business, despite challenges in other segments of the market.
Strong Performance from Lottery Division
The Danske Lotteri Spil division contributed significantly to the overall performance, generating 56.9 per cent of the total revenue. The lottery segment saw a 5.9 per cent rise in revenue, reaching DKK1.45bn, underscoring its role as a key driver of growth for the group.
Additionally, the recently merged Danske Klasselotteri, which became part of Danske Spil in 2022, contributed €121m, marking a 1.7 per cent increase.
Slower Growth in Other Segments
While the lottery division showed strength, other parts of the business faced more challenging conditions. Revenue from Danske Licens Spil, the division responsible for sports betting and online casino operations, remained almost unchanged at €826m. The stagnant performance is attributed to increased competition and a decline in retail trade, reflecting broader market pressures in the sports betting industry.
Land-based gaming also saw slow growth, with the Elite Gaming brand of gaming halls and slot machines generating DKK148m, up by only 0.7 per cent. Swush, Danske Spil’s fantasy sports offering, performed even more modestly, contributing just DKK1m before the company sold its stake in the venture to the newspaper group Ekstra Bladet, a transaction that brought in DKK27m in additional income.
Profit Growth Despite Rising Costs
Although operating costs have risen, Danske Spil saw notable improvements in its profitability. Pre-tax profit climbed by 8.6 per cent, reaching DKK1.28bn, while net profit grew 9.3 per cent, reaching DKK1.00bn.
The company has maintained its full-year forecast, expecting revenue to land between DKK5bn and DKK5.20bn, with a net profit forecast of DKK1.80bn to DKK1.90bn.
In regulatory news, the Danish gambling regulator, Spillemyndigheden, has announced a new initiative aimed at improving compliance with marketing rules within the industry. The regulator will collaborate with Spilreklamenævnet, the Danish gambling advertising board, and the Danish consumer ombudsman to ensure that gambling operators are adhering to the country’s strict marketing regulations.
This three-way collaboration will involve regular communication and annual meetings to coordinate enforcement actions and ensure that efforts are not duplicated across different bodies.
