Sound professionalism
TARGET AREA, PROFESSIONALISM
Svenska Spel’s operations are marked by high cost-efficiency and are valued from a commercial perspective. The operating margin for 2013 was 22.6% compared with 22.0% in the preceding year.
Sound professionalism
Svenska Spel’s mandate is based on counteracting gaming problems while offering customers attractive games that are in demand. The fact that Svenska Spel is not subject to owner earnings requirements is a prerequisite for being able to focus intently on responsible gaming. Being our customers’ first choice due to an attractive offering in combination with a safe, secure and responsible gaming environment will ensure long-term profitability.
Targets
Svenska Spel will responsibly optimise its business and pursue operations in an extremely cost-efficient manner. Over the course of an economic cycle of five to seven years, the operating margin must be at least 22%. Investments in responsibility measures assessed as positively impacting customer protection and reducing levels of gambling addiction are prioritised over profit.
Target fulfilment in 2013
Despite intense competition from unregulated gaming companies, Svenska Spel maintained stable earnings for 2013. Fluctuations in sales of different products are evened out by an extensive product portfolio. Since 2012, extensive efforts have been ongoing to lower Svenska Spel’s cost levels. The measures include enhancing the efficiency of a number of areas including marketing, premises, personnel and more. Costs declined by SEK 53 million (1.8%) year-on-year, despite increased costs from the launch of the Eurojackpot game, increased sponsorship of associations through Grass Roots and the development of products and services on the digital channels, etc. Efficiency initiatives continue with the aim of further lowering costs.
The operating margin for 2013 was 22.6% compared with 22.0% in 2012. The average over the past five years is 22.1% and measured over seven years is 22.2%.
Scope for new initiatives
By reviewing operations and identifying possible savings and efficiency enhancements, resources can be made available to invest in prioritised areas. The streamlining initiatives started in 2012 continued as planned in 2013. The aim of these efforts is to create scope for investments that develop the customer experience and strengthen responsible gaming and the brand.
Social contribution
Svenska Spel contributes directly and indirectly to society by delivering the surplus to the state. Svenska Spel also sponsors operations that are connected to strengthening Svenska Spel’s position in terms of its brand and core business. However, the company’s greatest contribution to society comprises the efforts it invests in reducing gambling addiction and, thereby, costs to society.
Sponsorship
Svenska Spel has a long relationship with Swedish sports. Sponsorship strengthens Svenska Spel’s brand and product brands while also contributing to a rich leisure life and to Swedish sports successes. The company’s stakeholders expect Svenska Spel to contribute to social welfare through sponsorship.
Sponsorship covers the major sports associations in football, ice hockey, handball, floorball and bandy. Support is provided both at the elite and national levels, as well as to youth sports programmes. Thanks to its sponsorships, Svenska Spel ensures that an increasing number of children and young people can try their hand at sports, while it also creates better conditions for a competitive elite.
Svenska Spel also works with values in sports and participates in the programme aimed at stopping violence in the arenas.
Football Fund
Svenska Spel’s Football Fund is a fund from which the elite clubs in the Damallsvenskan (first division of women’s football in Sweden), Superettan (second division in Swedish football) and Allsvenskan (first division in Swedish football) can apply for funds for various social projects beyond their regular club activities. In 2013, 29 clubs applied for money from the Fund and a total of SEK 1.3 million was distributed in 2013. The clubs use the funds for such efforts as projects against racism, collaborating with schools on homework and fighting eating disorders.
Elite sports scholarship
The Swedish Sports Confederation and Svenska Spel’s elite sports scholarship is distributed every year to about 50 elite athletes at the National team level who are enrolled at least half-time at a university, college or other higher-learning programme. The scholarship takes the shape of SEK 40,000 for each athlete and is awarded in conjunction with the Swedish Sports Awards. In 2013, 55 elite athletes received SEK 40,000 each.
Business ethics and anti-corruption
Svenska Spel’s overriding goal is to highlight and prevent unethical behaviour, both internally and externally. It is Svenska Spel’s responsibility to ensure that people are not abused, deceived or in any other manner exploited by the company’s operations. Svenska Spel’s Code of Conduct summarises the company’s overall approach to responsible and professional conduct. The Code describes how employees and ambassadors of Svenska Spel are expected to behave towards each other, customers, suppliers, retailers, business partners and other external parties.
In autumn 2013, efforts started with objectifying the social and ethical requirements that Svenska Spel will set for purchasing and these new requirements will be included in the purchasing process for all procurements. Svenska Spel is subject to the Public Procurement Act, which allows the company’s suppliers to compete on equal terms in each purchasing process.
Sustainability targets
Svenska Spel’s goal is to highlight and prevent unethical behaviour, both internally and externally. The registered gaming requirement represents a key tool for preventing problem gaming, strengthening age verification and preventing crime and fraud. The aim is for all customers to register their gaming, excluding paper lottery tickets and games at Casino Cosmopol.
Employees are not permitted to accept gifts, services or other benefits from suppliers or other business partners that exceed the scope of the corporate hospitality guidelines.
What is happening in 2014?
- Continued work on increasing cost-efficiency and making funds available for new initiatives.
- Ensuring clear management by objectives in operations.
