Note 3 - Segment reporting

In the preceding year, Svenska Spel’s organisation comprised the four business areas: Restaurant Gaming & Bingo Halls, Casino, Retail Outlet and Internet. The current organisation is effective from 1 September 2010 and comprises three business areas: Gaming & Lotteries, Vegas and Casino Cosmopol, as well as two areas of operation: Development and Production. The previous organisational structure was based on sales channels for each product. The Group’s classification of segments, which correspond to the new organisation’s division of business areas, is based on the executive managent’s monitoring of operations based on Svenska Spel’s range of gaming forms on offer. Comparitive data for the previous year has been recalculated in accordance with the new division of segments.

Commercial terms and pricing are applied to services and products delivered between Group companies. Accounting discloses the distribution of income and costs as well as assets and liabilities for each operating segment.

Two legal companies operate the business segment Casino Cosmopol, while the Parent Company AB Svenska Spel operates the other business segments of Gaming & Lotteries, and Vegas.

Directly assignable income-statement and balance-sheet items are accounted for within each business segment, while other items have been distributed. Other operations include businesses run by the Group’s other smaller subsidiaries.

All income below and recognised earnings are entirely attributable to Sweden.

Consolidation is carried out in accordance with the same principles used by the Group.

Operating segment                          
  Gaming & Lotteries   Vegas   Casino Cosmopol   Other operations/elimination of internal items   Svenska Spel Group
SEK million 2010 2009   2010 2009   2010 2009   2010 2009   2010 2009
Revenue                            
Net revenue from gaming 6,395 6,609   2,039 2,081   1,190 1,198   16   9,624 9,905
Commissions –1,106 –1,150   –842 –859     –12   –1,949 –2,020
Other revenue 82 87   1 0   86 82   40 42   209 211
Net sales from gaming operations, etc. 5,370 5,547   1,198 1,223   1,277 1,280   40 47   7,885 8,096
                             
Costs (incl. capitalised work) –1,816 –1,837   –387 –383   –805 –802   –82 –153   –3,090 –3,175
Operating profit 3,554 3,710   811 840   471 478   –42 –106   4,795 4,921
                             
Balance sheet                            
Investments 5 2   100 138   15 44   65 109   184 291
Other assets 781 897   221 215   849 836   5,452 5,760   7,302 7,708
Total assets 785 899   321 352   863 880   5,516 5,868   7,486 8,000
Amortisation, depreciation and impairment141 122   118 115   81 76   7 16   346 329
Liabilities 2,233 2,516     862 879   –375 –372   2,719 3,023
Total liabilities 2,233 2,516     862 879   –375 –372   2,719 3,023