Danske Spil is the Danish lottery operator. In its financial report for H1, it highlighted that its lottery segment was growing, and this trend continued since Q1.
Danske Spil stated that the growth in the lottery was due to improved financial results as well as the incorporation of class lotteries into the business from 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.
The growth in lottery revenue is the main reason for this increase. Lottery division revenue increased by DKK59m to DKK1,368bn. Class lottery revenue grew by 75.4% to DKK121m.
The company’s betting gaming revenues increased slightly, from DKK822m (DKK830m) to DKK830m. Elite Gaming, the company’s subsidiary for slot machines, saw revenues increase from DKK146m up to DKK147m.
It said that the growth was due to its online sports betting offerings. The casino sector, however, remained static. Danske Spil attributed this to the new initiatives they implemented, such as lower deposit limits.
Swush, the company’s fantasy sports division, doubled their revenue to DKK6 during the period under review. Due to its size, it had a minimal impact on financial results.
Danske Spil faces increased personnel and external costs
Danske Spil also saw an increase in its costs. Total costs for the company rose from DKK649m to DKK649m in 2022, an increase of DKK33m.
This was attributed to inflation, the company stated. The company also stated that 23 new employees were hired as a result of the merger. The cost of employee salaries increased by 11.4%, to DKK196m.
Danske Spil reported that its external costs increased to DKK351m compared with the DKK322m it spent during the same period last year. Depreciation expenses for the operator fell to DKK102m from DKK322m the previous year.
Higher revenue leads to higher profits
The business has reported an operating profit before tax of DKK1.17bn. The DKK 1,09bn in 2022 is an improvement on the DKK 1,09bn last year.
Danske Spil’s financial activity added DKK7m to its total, compared to DKK67m that it lost in the prior year.
This increase was attributed to a better income from interest on cash, and the price decline in securities in 2022.
The company announced a DKK915m total profit for the time period after DKK259m of taxes had been taken. The company reported DKK796 in revenue for the same time period last year. This represents a 14.9% rise.
