Terms and definitions

Financial concepts

Earnings per share Profit for the year divided by the average number of outstanding shares.

Equity ratio Equity including minority as a percentage of total assets.

Gross gaming revenue Revenue for all games and lotteries in the period, excluding stakes for multi-week games pertaining to future periods.

Net gaming revenue Gross gaming revenue less paid out winnings.

Net sales from gaming operations, etc. Net gaming revenue less commissions to retailers and other revenue pertaining to gaming operations.

Net sales per employee Net sales from gaming operations and so forth, divided by the average number of employees.

Operating margin Operating profit after depreciation and amortisation as a percentage of total revenue.

Profit (surplus) The profit is that part of Svenska Spel’s revenue that remains after paid-out winnings, commissions and deduction of costs for Svenska Spel’s administration. A portion of the profit from Penninglotten is designated to cultural projects. The remainder goes to the Treasury.

Other concepts

Breach of Treaty The EU treaty (Treaty of Rome) was effected on 1 January 1958. It consists of 314 articles and specifically contains the ground rules for the common market. The EU Commission handles cases of suspected breaches of treaty, so called breach of treaty cases.

Business partners The restaurants and bingo halls that offer gaming on Vegas VLTs in partnership with Svenska Spel.

Channelling Svenska Spel has the ambition to channel as much as possible of Swedish gaming from foreign internet companies to Svenska Spel’s more secure environment.

Corporate Social Responsibility (CSR) A concept that involves companies voluntarily integrating social and environmental consideration in their business operations and in conjunction with their stakeholders. CSR can be divided into several areas: Business ethics responsibility, Environmental responsibility, Social responsibility and Economic responsibility (source: the European Commission).

Net gaming market The total known Swedish gaming market in SEK, based on the total net gaming revenue of gaming companies.

Net market share The total known Swedish gaming market in per cent, based on the total net gaming revenue of gaming companies.

Precautionary principle The precautionary principle, as expressed in Svenska Spel’s mandate, means that Svenska Spel shall, when introducing new games or entering new markets, take protective measures, observe the limitations and take the precautionary measures otherwise required to prevent, hinder or counteract the risk of negative social consequences for consumers and the community.

Retail Outlets The retail chains, warehouses, grocery stores, petrol stations, etc. that sell Svenska Spel’s games and lotteries under agreement.

Weekly budget The weekly budget is a responsible gaming tool on svenskaspel.se that involves the customers setting a limit for the amount they want to transfer to their gaming account each week. The limit amount is up to the individual customer to decide.

Test purchase Svenska Spel appoints external partners who conduct anonymous customer visits at retailers and business partners to ensure compliance with the ordinances concerning age limits and identification checks.

Rake When playing poker at Casino Cosmopol and at svenskaspel.se, a fee is charged that is known as a rake. At svenskaspel.se, this fee comprises 2.5–10% of the funds at play and at Casino Cosmopol 5–10%.

PlayscanTM A service at svenskaspel.se that actively prevents problem gaming by identifying players who are at risk of developing gambling problems in the future. Those who activate PlayscanTM receive information about any changes in their gaming behaviour. Svenska Spel’s subsidiary Playscan AB licences PlascanTM to other gaming operators, such as the French company La Française des Jeux, the Swedish Miljonlotteriet, the Finnish Ray and the Canadian Atlantic Lottery.