| MSEK | 2016 | 2015 | 2014 |
|---|---|---|---|
| Net profit for the year | 4,866 | 4,803 | 4,763 |
| KEY INDICATORS | |||
| Customer satisfaction index (CSI) | 68 | 67 | 69 |
| Image, % | 55 | 54 | 54 |
| Market share | 40.5 | 42.5 | 43.5 |
| Awareness index1 | 83 | — | — |
| Work environment index1 | 72 | — | — |
| Operating margin, % | 22.2 | 22.6 | 22.2 |
1. New measurement figures for 2016, comparative figures missing. Definition, see page 99 in the printed Annual Report.
Download the Annual Report for full financial information and Corporate Governance Report.
Svenska Spel Annual Report 2016
Svenska Spel is the biggest, best-known gaming company in Sweden. Our customers interface with Svenska Spel's products and service in digital and physical environments. Regardless of where the customers play, it is our hope that they have an exciting and safe gaming experience. Svenska Spel's community involvement is great. Among other things, we are Sweden's largest sports sponsor.
Svenska Spel is to promote a healthy and safe gaming market – that is our mandate. We are to safeguard social protection considerations and satisfy demand for attractive gaming.
Advances happen rapidly and customer expectations and behaviour change quickly. To live up to customer expectations, companies must be quick, flexible and make the most of the opportunities presented by advances.
Customers expect there to be a simple and easy-to-understand service or app that solves their needs at the right time and in the right channels. This may refer to access and functionality on tablet devices or mobile phones, the option to conveniently buy a product or receive quick information about halftime results for a football game or correct a lottery row. This means that most companies focus on developing their mobile phone services.
More and more customers feel that social responsibility and the environment are important issues when they decide where and what to buy. Many do not only expect that companies conduct their core business in a responsible and sustainable manner. They do not trust the State and government authorities to solve all social issues, but expect companies to assume social responsibility over and above their core business. Those gaming companies that are on the vanguard have a competitive advantage.
Customers expect an even quicker delivery, response and reward than earlier. This trend is prevalent in most industries, and the gaming industry in particular where growth is mainly driven by fast and risky games and where the time between placing a stake and the outcome is very short. Greater access to games via mobile devices such as mobile phones and tablet devices also drive this trend. The fastest-growing games are online casino and live sports betting.
With multiple platforms, including PCs, tablet devices andmobile phones, customers expect a seamless experience wherever they interface with the Company, regardless of whether it is news media, video or e-commerce. What customers do on a platform must be reflected in the next interaction, even if it takes place on another platform or during a physical meeting with the Company. This offers both challenges and opportunities to companies that need to have a strategy for creating such an “omni-channel experience”.
It has become increasingly common for customers to use multiple screens in parallel to enhance and complement the perception of what they see and experience. Usually, it is a question of using a second screen, such as a tablet device, to interact with what we see on the first screen, usually the television. For instance, in the gaming world, it is possible to use a mobile phone or tablet device to look for information about a TV match that is underway, taking interaction to yet another level. For gaming companies, this offers the opportunity to communicate with customers throughout the entire match.
We promote long-term sustainable business by allowing the experience and responsibility to go hand-in-hand and by integrating sustainability efforts into the business model. Responsible gaming is Svenska Spel's greatest contribution towards sustainable development. In addition, the Swedish State has defined seven sustainability areas that we address, and of which anti-corruption and business ethics are the most prioritised for our operations.
Svenska Spel's 2016 CSR report is presented as an integrated part of the Annual Report and follows the guidelines for the Global Reporting Initiative (GRI), version G4.
The Annual Report including the CSR report can be downloaded here:
Svenska Spel Annual Report 2016
The dialogue with stakeholders is important to Svenska Spel in terms of the development of the Company's operations and responsibility. In 2016, some of our stakeholders were given the opportunity to share their expectations and their assessment of the Company's performance.
Customers
Owner
Stakeholder organisations
Employees
Svenska Spel's overriding strategy and compass is to retain a strong market position and be Sweden's leading customer experience company through “Gaming enjoyment and responsibility”. The overriding strategy is broken down into three perspectives for value creation: customer, employee and owner.
Svenska Spel is to offer the best and safest gaming experience, take steps to ensure that fewer customers develop gambling problems, and help more customers to make informed choices.
Svenska Spel shall be an attractive employer with proud, motivated employees.
Svenska Spel shall invest for the future to strengthen competitiveness and to be a longterm sustainable and efficient company that generates ownership value.
CEO'S COMMENTARY
We invest in the gaming experience of tomorrow
In a market of tough competition, Svenska Spel managed to increase net gaming revenue in 2016 and still holds a strong market position. We focus on improving the customers’ experiences in the different channels, in particular online.
Interview with the Chairman
We will strive to uphold and increase the ownership value
Erik Strand has been Svenska Spel's Chairman of the Board since the spring of 2016, a role of which he is both proud and pleased. Svenska Spel is facing a challenging period of re-regulation of the Swedish gaming market.