Danske Spil reported a gross gaming revenue (GGR) of DKK2.34 billion (£269.8 million/€314.3 million/$372.8 million) for the first half of the year ending June 30, marking a 1.6% increase compared to the previous year. The majority of this revenue stemmed from Danske Lotteri Spil, the operator’s lottery division, which saw a 3.6% rise in revenue to DKK1.35 billion, bolstered by large jackpots and a surge in online ticket sales.
In the online sector, Danske Licens Spil also experienced growth, with revenue climbing 4.3% to DKK934.5 million. The division, which provides online sports betting and casino services, benefited from a more typical sporting calendar following the disruptions of the COVID-19 pandemic in 2020. The UEFA Euro 2020 tournament, during which Denmark advanced to the semi-finals, played a significant role in attracting over 38,000 new customers.
The fantasy sports platform, Swush, reported a remarkable increase in revenue from DKK2.1 million the previous year to DKK11.4 million.
Conversely, the results from Danske Spil’s Elite Gaming venues were adversely affected, as they were closed for five months during this reporting period, a longer duration than the three months faced in the first half of 2020. Consequently, revenue from this segment plummeted 58.7% year-on-year, reaching DKK40.5 million. Additionally, the implementation of the Sikkert Spil (Safe Play) initiative, which mandates identification requirements at all Danske Spil locations, contributed to this decline, as it aims to better monitor player activity and prevent issues like money laundering.
Chairman Peter Christensen labeled the first half as “satisfactory,” highlighting that it marked the initial period in which Sikkert Spil was fully operational, while COVID-19 continued to impact land-based operations. Despite these challenges, he noted that the return to the Danish state exceeded contributions from the previous year.
In the first half, Danske Spil paid DKK288.2 million in state taxes, with retailer commissions falling to DKK217.3 million and other gaming-related expenses amounting to DKK139.6 million. This led to an operating profit of DKK1.69 billion, which is a 1.4% rise compared to H1 2020.
After accounting for costs such as staffing and depreciation, Danske Spil's profit totaled DKK1.04 billion, reduced by DKK13.2 million in financial expenses and DKK225.7 million in income taxes, yielding a net profit of DKK799.7 million, a slight year-on-year increase.
As a result of the first-half performance, the operator has slightly increased its profit forecasts for the year, revising projections from a full-year profit of DKK1.30 billion to DKK1.40 billion, to a new range of DKK1.40 billion to DKK1.50 billion. Despite this, revenue expectations remain steady at between DKK4.60 billion and DKK4.80 billion.
The potential merger of Danske Spil and Danske Klasselotteri, which the government is pursuing, remained largely unchanged. Announced in July, the merger is aimed at achieving cost-savings and aiding the digital transformation of both entities, with implementation expected in either 2021 or 2022.
