Veikkaus Oy Reports Positive Performance and Digital Growth in H1 2023
Veikkaus Oy has reported its financial results for the first half of 2023, showcasing a positive performance and notable digital growth.
During this period, the company’s gross gaming revenue experienced a modest increase of 0.6% compared to the same period in the previous year, reaching a total of EUR 519.0 million. This performance is particularly noteworthy given the challenging circumstances faced by many sectors during these times.
“Veikkaus’ result and performance during the first half of the year (January-June) were as expected, and we can be satisfied with these as a whole. The first half of the year was positive, especially in Veikkaus’ digital channel” says Veikkaus CFO Regina Sippel.
Focus on digital expansion
What stands out in Veikkaus Oy’s report is the strong performance witnessed in its digital channel, which played a significant role in driving positive results for the first half of the year. The company’s strategy to focus on digital expansion appears to be bearing fruit, as evidenced by the substantial contribution of 54% of its gross gaming revenue coming from the digital channel. This shift towards digital engagement underscores the evolving landscape of the gambling industry, where players are increasingly embracing online platforms.
One of the pivotal changes introduced by Veikkaus Oy during this period was the requirement for identification in all coupon games as of May 15, 2023. This strategic move aims to enhance player protection, particularly by strengthening age limit controls and promoting safer gambling practices. The company’s dedication to fostering a secure and responsible gambling environment aligns with broader industry trends and regulations aimed at safeguarding players.
Despite the dynamic challenges faced by the sector, Veikkaus Oy reported positive trends in specific game categories. The gross gaming revenue from online casinos, encompassing digital automated games and table games, surged by an impressive 9.4%, reflecting the growing popularity of these forms of entertainment among players.
Eurojackpot also demonstrated robust growth with a 20.8% increase in gross gaming revenue, attributed to the introduction of additional draws. However, there was a decline of 12.7% in Lotto’s gross gaming revenue, primarily driven by factors such as smaller jackpots and variations in the number of drawings due to calendar scheduling.
In addition to these game-specific outcomes, the overall financial performance of the company saw some fluctuations. Veikkaus Group’s profit and operating profit experienced a decrease of 5.7% and 6.2% respectively, mainly attributed to higher costs, including the lottery tax and development expenditures. Nevertheless, Veikkaus Oy’s commitment to innovation, digital expansion, and responsible gambling practices remains steadfast.
As part of its strategy for the future, Veikkaus Oy’s subsidiary Fennica Gaming Oy also delivered promising results in the international business-to-business segment. With a growing presence and positive reception of online scratchcards developed by Veikkaus, the subsidiary is poised to contribute significantly to the company’s overall growth.
Timo Kiiskinen, Managing Director of Fennica Gaming said “The online scratchcards that Fennica Gaming provided for its international corporate clients have attracted great international interest. Online scratchcards developed by Veikkaus can already be played in Norway, Sweden, Denmark, Latvia and Germany. Fennica Gaming’s corporate clients have been very satisfied with the quality of games developed by Veikkaus and the modern technology and reliability of the game engine and platform.”
In summary, Veikkaus Oy’s performance for the first half of 2023 paints a picture of resilience and adaptability in the face of evolving industry dynamics. The company’s digital focus, responsible gambling initiatives, and efforts to diversify its portfolio have collectively contributed to its positive trajectory and promising outlook.