Group's financial position and results

Net gaming revenue by sales channel

Net gaming revenue amounted to SEK 8,961 million (8,941), up SEK 20 million compared with the preceding year.

Net gaming revenue from the Online sales channel increased SEK 169 million to SEK 1,691 million (1,523). Growth compared with last year is a total of 11%, of which mobile phones and tablet devices rose by 59%. It is in the Retailers and Restaurants sales channels that net gaming revenue is declining. Net gaming revenue from the Retailers channel decreased by SEK 83 million to SEK 4,719 million (4,803) and from the Restaurant channel by SEK 79 million to SEK 1,075 million (1,154). The decline in net gaming revenue from these channels is mainly due to the introduction of obligatory game registration but also to changes in customer gaming behaviour, where increasing numbers of people opt to play via their mobile phones. Net gaming revenue in the Casino sales channel amounted to SEK 1,180 million (1,159), up SEK 21 million. Net gaming revenue from other sales channels totalled SEK 295 million (303).

Net gaming revenue by gaming category

Net gaming revenue is increasing for Games of chance and Sports games and is declining for Casino. Games of chance reported net gaming revenue of SEK 4,803 million (4,768), up SEK 36 million. Higher net gaming revenue is reported by Triss and Eurojackpot, and the sales trend remains positive. Triss reaches an all-time-high in 2015, an increase in net gaming revenue of 7% compared with 2015. Lotto reports lower net gaming revenue, mainly because the number of spontaneous purchase customers has dropped as a result of obligatory registration, and a redistribution to the number game Eurojackpot which has higher win levels.

Net gaming revenue from Sports games amounted to SEK 1,626 million (1,579), up SEK 47 million. Competition in sports games is intense and Svenska Spel regularly expands its live games offering to be attractive to customers.

Casino games report net gaming revenue in the amount of SEK 2,531 million (2,594), down SEK 63 million. It is primarily Vegas VLT gaming that is dropping, mainly due to the introduction of obligatory registration coupled with competition from online casinos. Table games and slot machines at physical casinos have grown favourably, up SEK 20 million during the year.

Operating profit and operating margin

The period’s operating profit amounted to SEK 4,791 million (4,705), up SEK 86 million. The operating margin was 22.6% (22.2). Operating costs amounted to SEK 2,852 million (2,898), down SEK 46 million despite impairment of development costs in the amount of approximately SEK 45 million. The reduction in costs comprises a general reduction in several different cost items, but it is primarily costs related to marketing, data and telecommunication that are lower. Improved operating margins are attributable to both lower operating costs and an improved mix between products that have different margins.

Net financial items

Net financial items totalled SEK 11 million (55). Lower net financial items were attributable to historically low interest rates. The return on financial investments and cash and cash equivalents amounted to SEK 9 million (37). Of the net financial items, SEK 1 million (15) pertained to a net value change in Triss Månadsklöver.

Earnings

The Group’s comprehensive income for 2015 amounted to SEK 4,803 million (4,763), up SEK 41 million.

Cash flow

Cash flow from operating activities was SEK 5,081 million (5,337). Cash flow from investing activities was a negative amount of SEK 392 million (neg: 41). Investments in financial assets amounted to a negative amount of SEK 795 million (neg: 126), while divestments totalled SEK 647 million (425) and pertained to current financial investments of the Group’s surplus liquidity and changes in financial investments for Triss Månadsklöver. Cash flow from financing activities amounted to a negative SEK 4,763 million (neg: 5,219) and were attributable to the final adjustment of earnings in 2014 in accordance with a resolution by the AGM. The period’s cash flow was SEK -74 million (77) and at the end of the period, cash and cash equivalents amounted to SEK 3,042 million (3,116).

Investments

Investments in property, plant and equipment totalled SEK 168 million (178). Investments in intangible assets totalled SEK 76 million (162) and were mainly attributable to ongoing projects to develop the Group’s gaming systems and gaming products.

Financial position

At the end of the period, consolidated equity amounted to SEK 4,803 million (4,763), which, in addition to share capital and the statutory reserve, included earnings for the period. The equity ratio was 57.2% (57.2).

Parent Company

The Parent Company includes all gaming operations except the Casino Cosmopol business area. Net revenue from gaming operations, etc., amounted to SEK 6,348 million (6,303). The operating profit amounted to SEK 4,252 million (4,204), up SEK 48 million. Investments in property, plant and equipment and intangible assets totalled SEK 200 million (288). Investments in financial assets amounted to SEK 795 million (126) and divestments to SEK 647 million (425).