Danske Spil, the Danish national lottery operator highlighted in its H1 Financial Report that its lottery segment was driving revenue growth. This trend continued from Q1.
Danske Spil stated that the growth in the lottery was due to improved financial results as well as the integration into the business of the class lotteries since April 2022.
The operator reported DKK2.47bn (PS280m/$360m/EUR330m) in revenue for H1 2023, up 5.2% from the DKK2.25bn the company received in the same period of the previous year.
Lottery growth was the main driver of this increase. The revenue of the company’s Lottery division was DKK1,368bn, an increase of DKK59m over the previous year. The class lottery grew by 75.4% to DKK121m.
The company’s betting gaming revenues increased slightly, from DKK822m (DKK830m) to DKK830m. Elite Gaming, the company’s slot-machine subsidiary, saw revenues increase from DKK146m up to DKK147m.
The company said that the growth was due to its online sports betting offerings. The casino segment, however, remained stagnant. Danske Spil attributed this to the new responsible gaming measures it implemented, such as lower deposit limits.
Swush, the company’s fantasy sports division, doubled its revenues during the period under review to DKK6. Due to its size, it had a negligible effect on the financial results of the company.
Danske Spil faces increased personnel and external costs
Danske Spil also saw an increase in costs over the period. The company’s total costs increased to DKK649m in 2022, an increase of DKK33m.
This was attributed to inflation and the merger of the Class Lottery. The company also stated that 23 new employees were hired as a result of the merger. The cost of employee costs increased by 11.4%, to DKK196m.
Danske Spil reported that its external costs increased to DKK351m compared to DKK322m spent by the company in the same period last year. Depreciation costs for the operator fell to DKK102m from DKK322m the previous year.
Higher revenue leads to higher profits
The business reported an after-tax profit before costs of DKK1.17bn. The DKK1.09bn in 2022 is a significant increase from the DKK1.09bn last year.
Danske Spil’s financial activities added DKK7m to this total, compared to DKK67m that was lost in the previous year.
This increase was attributed to a better interest income from its cash as well as a drop in the price of its securities portfolio by 2022.
The company reported DKK915m as its total income after DKK259m of taxes. This represents a 14.9% rise from the DKK796 that the company announced for the same period last year.