Profits Down for Danske Spil
Danske Spil, the Danish lottery and gaming operator, has reported a fall in its year-on-year net profit for the first quarter of the 2022 financial year and blamed an increase in taxes and dealer commission fees.
The operator's Gross Gaming Revenue (GGR) for the three months ending 31 March 2022 was DKK1.123 billion, slightly up from the DKK1.122 billion in the same period of the previous year. Danske Spil explained that the increase was thanks to the reopening of the Elite Gaming Halls that had been closed for all of Q1 2021 due to coronavirus pandemic restrictions. Elite Gaming's revenue for the quarter was DKK61.0 million.
However, for the same period, lottery revenue from the Danske Lotteri Spil lottery business fell 3.0% to DKK637 million, and revenue from Danske Licens Spil, which offers sports betting and casino gaming, fell 8.4% to DKK423 million. The remaining revenue came from the Swush fantasy sports platform.
In regards to costs, state taxes rose 12% to DKK149 million, and dealer commission went up to DKK105 million. However, other game-related expenses in the first quarter were slightly lower, DKK65 million.
External costs were up 2.1% to DKK148 million, and personal expenses were up 2.5% to DKK81 million. There was a 25.6% fall in depreciation and write-up costs to DKK58 million. However, financial costs were up 188.9% to DKK26 million.
The company made a pre-tax profit of DKK502 million, down 2.5% from 2021. After tax of DKK110 million was paid, it left a net profit of DKK392.0 million, down from DKK402.0 million last year.
Danske Spil confirmed that it remains on track to achieve its full-year revenue guidance of between DKK4.8 billion and DKK5.0 billion. It also expects net profits of between DKK1.6 billion and DKK1.7 billion.
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