Global Gaming hit by new Swedish laws in Q1
Published 15th May 2019
Revenue amounted to SEK162.1m (£13.1m/€15.1m/$16.8m) during the three months to March 31, 2019, down from SEK198.6m in the same period last year.
The Ninja Casino brand was responsible for 93% of all revenue in the quarter, but the new Swedish regulations, as well as a number of technical problems that hit the operator in January, meant revenue struggled.
Operating expenses were up from SEK81.9m in Q1 of 2018 to SEK120.8m in the first quarter of this year, with marketing expenses rising from SEK63.5m to SEK82.8m and group personnel costs from SEK12.5m to SEK26.3m, as total staff numbers increased from 129 to 144.
Lower revenue, coupled with higher spending in Q1, led to an operating loss of SEK43.3m, compared to a profit of SEK29.3m last year.
Loss after tax also amounted to SEK41.5m, down from a profit of SEK25.8m last year.
Tobias Fagerlund, who was named as the new CEO of Global Gaming last month, said: “We are fully working on the package of measures that was launched at the beginning of the year, and at the same time are looking at the company’s strategy to take back the initiative and create long-term and sustainable growth,” he said.
“Based on what we know about the second quarter so far, we also see some stabilisation, although it is too early to establish a trend break.
“Based on preliminary results in April, the decrease in sales has levelled off, and at the end of the month we were able to observe some growth - albeit from new lower levels. It is a highlight in what has so far been a very turbulent year.”