A new and clear course

2011 was an eventful year, which in many ways entailed a new beginning for Svenska Spel. We launched a new vision, new values and a new brand platform – a clear foundation that places the customer and the future in focus. We experienced a strong launch and we are bringing this positive energy with us as we now move the Company forward.

When I first joined the Company, I listened and learned about the Company’s mission, situation, market, product portfolio and customer offering. I travelled to our neighbouring countries to learn more about how to work with gaming and gained valuable knowledge and inspiration. I also conducted many dialogues with the Board and our owners to attain a clear impression of their view of Svenska Spel and our challenges.

We must face the competition

Svenska Spel has a mission that calls for our responsibility for and care of our customers to take priority over profit maximisation. Our vision is for gaming to provide enjoyment for all, which is the foundation for our company. However, continuing to take responsibility and shaping a sound and safe gaming market requires us to constitute a substantial share of that market.

To continue to maintain our market share and develop our offering, we must face the forcefully increasing competition, in terms of the regulated market, foreign unregulated online companies and illegal companies that do not comply with the same terms and conditions and regulatory framework as Svenska Spel.

In reviewing the results for 2011, a great deal is progressing in the right direction: our revenue increased and our costs decreased. Net gaming revenue rose SEK 63 million year-on-year and all business areas reported higher operating profit than in 2010. Earnings for the full-year – the third best ever – rose by SEK 240 million, in part as a result of our focus on cost efficiency in the Company during the year.

We delivered strong earnings and we should be proud of this. However, despite this, we did not manage to grow at the same rate as the market – we lost market shares. Accordingly, our major challenge remains. We must reverse the declining trend to enable us to achieve our mission successfully. The market shares differ between our various products and channels. In certain product categories, such as sports games and digital platforms, we lost shares, while we maintain a monopoly in casinos and slot machines.

We have laid the foundation for the future

During the autumn, we took several key steps toward tomorrow’s Svenska Spel. We launched a new vision and new corporate values, which provide energy in our daily work and help us envision the goal ahead of us. We must continue to build long-term relationships with our customers and make it easier to choose us by being accessible, considerate and committed. We will deliver attractive games and always go the extra mile for our customers, business partners and colleagues.

We also created a brand platform that enables us to more clearly shape our offering and prioritise the activities on which we must focus based on what our customers want. In other words, the journey has begun – which we are sure that our customers and the market will notice moving forward.

We must accelerate and slow down

We have concluded that we are in a negative spiral – which is why we must act now. It is a matter of being able to say that we saw the warning signs in time five years from now, that we were awake, listened to our customers and enacted the necessary changes.

Our position in the market will be dependent on a clear organisation that possesses the drive and ability to adapt its operations to market conditions, technological advances and customers’ needs. To achieve this, we must simultaneously accelerate and slow down. Based on our goals and the market’s expectations, we must prioritise so that we can spend more resources where they make the greatest difference for the customer. This entails reinforcing certain areas of the operations and cutting back in others.

We are assigning the necessary priorities to stand strong ahead – regardless of the situations that arise. We must invest more in customer meetings and focus more on developing attractive games that customers demand – modern and digital games, image-enhancing games, and effective responsible gaming measures. We have begun to build the next generation’s digital platform, whereby we responsibly raise the customer experience to an entirely new level.

We shall always be the customer’s best alternative

Many opt for gaming with us because it feels safe and because we offer the tools to personally be in control of their gaming. This gives us a competitive advantage that we want to maintain and strengthen. By being proactive and working more closely on research, we will continue to strive to be at the forefront in our responsible gaming. We will also further improve at showing our commitment and contributing our knowledge and experiences in the public debate.

As you can see, we have an exciting time ahead of us. We have a new situation in the market, which we must face with innovation and drive. Naturally, this is all made possible by Svenska Spel’s proficient employees, whose efforts I am proud of and grateful for. Together, we will demonstrate what Svenska Spel represents and continue to offer our customers games that provide enjoyment and excitement in their everyday lives.

Visby, February 2012
Lennart Käll, President and CEO

"We are assigning the necessary priorities to stand strong ahead."