Svenska Spel reports 1% Q3 revenue growth as operating profit falls 9%

Sweden's state-owned gaming group Svenska Spel recorded net gaming revenue of SEK 1.898 billion in the third quarter of 2026, representing a 1% increase from SEK 1.874 billion a year earlier. However, higher strategic investment costs weighed on profitability, with operating profit declining 9% to SEK 656 million.

The results, covering the three months to 30 September 2026, show continued growth in selected business areas and further expansion of the company's online channel. Nevertheless, the decline in operating profit highlights the financial impact of investment spending as Svenska Spel continues to develop its brand, technology and customer offering.

Revenue increases as operating profit declines

Svenska Spel's operating profit fell by SEK 62 million year on year, from SEK 718 million to SEK 656 million. The operating margin also narrowed, reaching 35% compared with 38% in the corresponding quarter of 2025.

According to the company's interim report, higher costs associated with strategic initiatives were the primary reason for the decline. These initiatives include investment in the Svenska Spel brand, artificial intelligence and the transition to cloud-based services. The company has said these measures are intended to improve the customer experience, increase operational efficiency and support sustainable growth over the longer term.

The financial figures also show that the business generated a higher contribution from financial items during the quarter. Net financial items totalled SEK 60 million, compared with SEK 20 million a year earlier. Profit after financial items nevertheless declined from SEK 739 million to SEK 716 million.

After tax, profit from continuing operations stood at SEK 565 million, down from SEK 584 million in the comparative period. The tax charge was SEK 152 million, compared with SEK 155 million a year earlier. These figures indicate that revenue growth did not translate into higher quarterly earnings as increased expenditure absorbed part of the improvement.

Lottery and sports products support growth

The Tur business area remained Svenska Spel's largest revenue contributor. Net gaming revenue from the segment reached SEK 1.316 billion, increasing 1% from SEK 1.307 billion in the third quarter of 2025.

Lotto and Triss were among the main contributors to the positive performance. The company attributed part of Triss's development to increased visibility in grocery retail outlets and the launch of a special anniversary ticket celebrating the lottery's 40th year. Lotto also continued to perform positively.

Eurojackpot recorded lower customer activity than in the same period last year. Svenska Spel linked this development to lower jackpot levels compared with the previous year's corresponding quarter. Despite that variation within its lottery portfolio, Tur maintained a broadly stable performance and continued to account for the largest share of group net gaming revenue.

Sport & Casino delivered stronger percentage growth. The segment generated SEK 516 million in net gaming revenue, up 6% from SEK 489 million a year earlier. The company attributed the increase to activity surrounding the concluding stages of the FIFA World Cup, customer initiatives and continued demand for sports betting under the Oddset brand. Its online casino business also recorded a stable development.

The Vegas business area moved in the opposite direction. Revenue fell 15% to SEK 67 million from SEK 78 million in the previous year's quarter. Svenska Spel attributed the decline partly to a smaller partner network and the continuing shift towards online gaming. This change in customer behaviour remains an important consideration for a segment that relies on gaming machines located in restaurants and bingo halls.

Online revenue gains strengthen the sales mix

The online channel continued to expand and provided an important source of growth during the quarter. Net gaming revenue generated online increased 4% to SEK 1.274 billion from SEK 1.224 billion a year earlier. Online accounted for 67% of total net gaming revenue, compared with 65% in the corresponding period of 2025.

Mobile gaming represented 59% of net gaming revenue during the quarter, up from 57% a year earlier. The figures illustrate the growing importance of digital access within Svenska Spel's overall sales structure.

Other distribution channels recorded lower revenue. The agent channel declined approximately 2% to SEK 558 million from SEK 567 million. Revenue from restaurants and bingo halls fell 14% to SEK 67 million compared with SEK 78 million in the previous year's quarter.

The difference between online growth and declines in physical channels suggests that the distribution mix is continuing to change. While the online channel is becoming more important to overall performance, the financial results also show that traditional retail and venue-based activities remain part of Svenska Spel's business.

Nine-month results show continued revenue growth

For the first nine months of 2026, Svenska Spel recorded net gaming revenue of SEK 5.741 billion, a 3% increase from SEK 5.562 billion in the corresponding period of 2025. Operating profit rose 2% to SEK 1.932 billion from SEK 1.898 billion.

The operating margin for the nine-month period remained unchanged at 34%. These figures indicate that the group's year-to-date operating performance remained positive despite the reduction in quarterly operating profit.

Profit from continuing operations increased 6% to SEK 1.630 billion, compared with SEK 1.536 billion in the previous year. This result provides a more direct view of the performance of the continuing business than the group's total reported profit because it excludes the results of the discontinued land-based casino operations.

Total profit for the first nine months reached SEK 1.918 billion, up 33% from SEK 1.439 billion a year earlier. However, this increase requires context because the total includes a contribution from discontinued operations that should not be treated as recurring operating growth.

Former Casino Cosmopol property affects reported earnings

The difference between continuing and total profit is largely explained by the disposal of the former Casino Cosmopol property in Stockholm. During the first nine months of 2026, Svenska Spel reported SEK 288 million in profit from discontinued operations, principally reflecting the gain from the sale of the subsidiary that owned the property.

The corresponding period in 2025 recorded a SEK 97 million loss from discontinued operations. The change in this item therefore had a material effect on the year-on-year increase in total profit.

Svenska Spel's land-based casino activities had been discontinued in 2025 following a decision by Sweden's Riksdag to end land-based casino gaming. The subsequent property disposal is reported separately from the continuing business. This accounting treatment is important when interpreting the 33% increase in total profit because it distinguishes the impact of a property transaction from the results generated by ongoing gaming operations.

Strategic investment and responsible gambling remain priorities

President and CEO Anna Johnson has described the quarter as a continuation of the company's positive development, pointing to growth and good profitability in the context of its sustainable growth strategy. The latest financial figures show that revenue increased, although higher spending limited the operating result.

Svenska Spel has also reported that 94% of its revenue met its internal definition of healthy revenue, compared with 95% in the third quarter of 2025. This is a company-defined measure and should be understood within the methodology used in its reporting rather than as a complete assessment of every aspect of consumer protection.

The Swedish Gambling Authority remains the country's licensing and supervisory authority for gambling activities. For Svenska Spel, the commercial outlook must therefore be considered alongside regulatory obligations, customer protection and responsible gambling practices. Investment in technology may support improvements in customer experience and operational systems, while the effectiveness of such initiatives will need to be assessed through future business performance and the company's ongoing disclosures.

Conclusion

Svenska Spel's third-quarter results present a mixed financial picture. Net gaming revenue increased 1% to SEK 1.898 billion, supported by continued growth in Tur and a stronger contribution from Sport & Casino. Online revenue also advanced, reinforcing the significance of digital distribution within the group's business model.

At the same time, operating profit declined 9% as spending on the brand, artificial intelligence and cloud-based services increased. The weaker performance of Vegas and the decline in physical distribution channels also show that growth has not been uniform across the business.

For the first nine months of 2026, the company maintained growth in net gaming revenue and operating profit, with the operating margin holding at 34%. The 33% rise in total profit should be viewed separately from the performance of continuing operations because the result included a SEK 288 million gain associated with the disposal of the former Casino Cosmopol property.

Looking ahead, Svenska Spel's ability to balance investment spending with revenue growth will remain central to its financial performance. Its next results will provide further insight into whether current initiatives can support improved profitability while maintaining customer confidence, responsible gambling standards and a stable operating foundation.

FAQs

What were Svenska Spel's net gaming revenues in Q3 2026?
Svenska Spel reported net gaming revenue of SEK 1.898 billion for the third quarter of 2026, representing a 1% increase from SEK 1.874 billion in the same period of 2025.

Why did Svenska Spel's operating profit decline?
Operating profit decreased 9% to SEK 656 million. The company attributed the decline primarily to higher costs associated with strategic investment in its brand, artificial intelligence and cloud-based services.

What was Svenska Spel's operating margin in Q3 2026?
The operating margin was 35%, compared with 38% in the third quarter of 2025.

Which Svenska Spel business area generated the most revenue?
Tur was the largest business area, reporting net gaming revenue of SEK 1.316 billion during the quarter.

How did Sport & Casino perform during the quarter?
Sport & Casino increased net gaming revenue by 6% to SEK 516 million, supported by sports betting under Oddset and a stable performance from online casino.

Why did the Vegas segment record lower revenue?
Vegas revenue declined 15% to SEK 67 million. Svenska Spel attributed the decrease partly to having fewer partners and the continuing shift towards online gaming.

How much did Svenska Spel earn through online channels?
Online net gaming revenue reached SEK 1.274 billion, an increase of 4% year on year. Online represented 67% of total net gaming revenue during the quarter.

What were Svenska Spel's results for January to September 2026?
Net gaming revenue increased 3% to SEK 5.741 billion, while operating profit rose 2% to SEK 1.932 billion. The operating margin remained at 34%.

Why did total profit rise by 33% during the first nine months?
Total profit increased to SEK 1.918 billion, partly because of SEK 288 million in profit from discontinued operations associated with the disposal of the former Casino Cosmopol property in Stockholm.

What is the difference between continuing operations and total profit?
Continuing operations reflect the business activities that remain in operation, while total profit also includes separately reported discontinued operations. For Svenska Spel, the property disposal contributed to total profit without representing recurring earnings from its continuing gaming activities.