Danske Spil reported an increase in revenue and net profits year over year during 2022, despite having to deal with an “uncertain” background.
Nikolas LyhneKnudsen, chief executive of Danske Spil, reflected on the company’s full-year performance and cited Russia’s invasion in Ukraine, rising inflation, interest rates, and the energy crisis as factors that had an impact on the operator in 2022.
The group managed to overcome these difficulties and achieve record growth. Lyhne-Knudsen said he was satisfied with the performance and that the business had met its expectations.
Lyhne-Knudsen stated that it was satisfying, particularly because we can simultaneously state that our efforts to combat gambling addiction are effective and that the number customers in Danske Spil at high risk of developing gambling addiction has been steadily decreasing.”
Danske Spil believes that responsible game selection, healthy gambling habits and happy customers are all essential to a successful and healthy business.
Results for the full year
Overall gross gaming revenue (GGR) for the 12 months to 31 December 2022 amounted to DKK4.98bn (PS592.4m/EUR668.4m/$708.0m), up 3.0% from DKK4.83bn in the previous financial year and in lien with guidance of between DKK4.80bn and DKK5.00bn.
GGR from Danske Lotteri Spil’s lottery business was DKK2.81bn. This is an increase of 0.7% over the previous year and a new record for the group.
Danske Licens Spil (which includes online casino and sports betting) reported DKK1.66bn GGR for the year. This is 8.7% less than DKK1.82bn 2022. The decline in sports betting, while casino remained flat, caused by a decrease in sports betting.
The removal of all restrictions on land-based gambling venues in Denmark due to the pandemic caused by the outbreak of the flu epidemic boosted GGR at Elite Gaming by 44.2%, to DKK299.6 million
Elsewhere Dankse Klasselotteri, a “class lottery”, was integrated into the business’s operations in April 2022. Revenue from the Swush fantasy sport platform increased 6.6% to DKK16.1m.
When it came to spending, Danske Spil spent DKK644.7m on state taxes, DKK459.6m on dealer commission, and DKK269.6m on other gaming-related costs. The operating profit was DKK3.60bn. This is an increase of 4.0% from the previous year.
Operating expenses were DKK1.33bn. Net financial costs were DKK92.5m. This resulted in a pretax profit of DKK2.22bn. This is 6.9% more than 2023. Danske Spil earned DKK490.7m in income taxes, which means that it ended the year with DKK1.73bn net profit, an increase of 6.2% from last year.
The operator also noted that EBITDA for this year rose by 3.7% to DKK2.56bn.
