Group financial results and position

Revenue

Net gaming revenue amounted to SEK 9,687 million (9,624), up SEK 63 million compared with the preceding year. All business areas contributed to the increase: Vegas increased 2.2%, Casino Cosmopol by 1.1% and Gaming & Lotteries by 0.1%.

Net sales from gaming operations, etc. totalled SEK 7,919 million (7,885), up SEK 34 million, or 0.4%, from 2010.

Profit

Operating profit for 2011 amounted to SEK 4,940 million (4,795), an increase of SEK 145 million (3%) since the preceding year.

Operating expenses totalled SEK 2,979 million (3,090), a decline of 3.6%. The expenses that decreased most were marketing expenses and depreciation. A non-recurring expense of SEK 17.9 million reduced operating expenses and pertains to the repayment of VAT for the period 2005–2010.

The operating margin increased by 0.1% to 21.9%.

Net financial items totalled SEK 66 million (–27). The change is attributable to higher returns on investments, higher bank interest income and positive value changes in respect of investments aimed at future payments to winners of the Triss Månadsklöver lottery.

The consolidated comprehensive income for 2011 amounted to SEK 5,007 million (4,766), or SEK 240 million higher (5.0%) than the previous year.

Cash flow

Cash flow from operating activities totalled SEK 5,600 million (4,836). Cash flow from investing activities amounted to a negative SEK 842 million (–735). Cash flow from financing activities totalled a negative SEK 4,766 (–4,877) and pertained to the payment of the surplus for 2010, with deductions for advance payments, in line with the decision of the AGM. Cash and cash equivalents totalled SEK 2,264 million (2,273).

Investments

Investments in tangible assets totalled SEK 162 million (174), while investments in intangible assets amounted to SEK 35 million (29). Investments in financial assets totalled SEK 2,097 million (848), with disposals amounting to SEK 1,584 (381).

Financial position

Equity at 31 December 2011 was SEK 5,007 million, or SEK 240 million higher than the corresponding date a year earlier. The equity/assets ratio was 61.8% (63.7).

Segment reporting 2011

Svenska Spel’s Group executive management monitors operations using segments based on Svenska Spel’s offering of games.

The group’s operational segmentation corresponds to the organisation’s division into business areas, namely, Gaming & Lotteries, Vegas and Casino Cosmopol. A minor redistribution of joint costs was conducted in 2011 and the Company’s figures have been adjusted according to the new distribution model.

Parent Company

The Parent Company includes all gaming activities except the casino operations. Net gaming revenue in the Parent Company in 2011 totalled SEK 8,484 million (8,434). The Parent Company’s share of the total net gaming revenue in the Group was 87.6% (87.6). Net sales from gaming operations, etc. amounted to SEK 6,636 million (6,614). Operating profit was SEK 4,384 million (4,257), up 3.0%.

Investments in tangible and intangible fixed assets totalled SEK 160 million (165). Investments in financial assets amounted to SEK 2,096 million (848).

The average number of employees was 755 (744), whereof 63% are men.