Gaming shall be enjoyed by all!

Review of 2016

Q1
  • A new gaming site was launched, with attractive games and services as well as an improved responsible gaming tools.
  • Launch of Prispallen. For every internationally earned place on the winners podium, Svenska Spel donates SEK 10,000 to the association that the athlete or team represents.
  • A new key indicator for responsible gaming, the Playscan index, was launched as part of the Company’s measurement of the effects of measures and tools that are directed at our customers.
Q2
  • A new partnership agreement was signed with the Swedish Bandy Federation. The three-year agreement is valued at about SEK 16 million in total.
  • Launch of a new app that offers a notification service for sports games customers.
Q3
  • Svenska Spel has applied for a permit for new game forms such as e-sport and fantasy sport.
  • A new partnership agreement was signed with the Swedish Floorball Federation. The three-year agreement is valued at about SEK 20 million in total.
  • Triss celebrated its 30th anniversary and this was celebrated with the release of a new campaign product, Triss 90 kr.
Q4
  • Bingo was launched for mobile phones and tablet computers.
  • SEK 50 million was paid to sports associations’ youth operations through Gräsroten.
  • The Company is helping to fund the first professor of medicine in gambling addiction in Sweden.
  • A new sponsorship guideline that advocates human rights was launched.
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Net profit for the year and key indicators

MSEK201620152014
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

Lennart Käll President and CEO

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.

Erik Strand Chairman

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.

About Svenska Spel

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. 

Mandate, vision and mission

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.

The Swedish gaming market

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.

Five market trends

  • Customer demand for access and simplicity

    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.

  • Customers are more aware and want healthy customer options

    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.

  • Demand for speedy delivery and instant gratification

    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.

  • Seamless customer interaction in all channels...

    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”.

  • ...And on multiple screens simultaneously

    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.

Long-term sustainable development

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 stakeholder dialogue

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

SAID ABOUT SVENSKA SPEL

”I grew up with Tipsextra on Saturdays...”

Anders Almgren, Customer

Said about svenska spel

“A step in the right direction is including gambling addiction in the Social Services Act.”

Sandra Mittjas, Association for Gambling Addicts, Stockholm

SAID ABOUT SVENSKA SPEL

“Svenska Spel could do even more to help us spread awareness.”

Sara Lindholm, Chairman of the Research Council

SAID ABOUT SVENSKA SPEL

“We have to succeed in attracting the best employees.”

Maria Z Furenmo, HR Director at Svenska Spel

Strategy
Gaming enjoyment and responsibility

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.

The best and safest gaming experience for our customers

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.

Our customer-oriented employees

Svenska Spel shall be an attractive employer with proud, motivated employees.

Value for owner and society

Svenska Spel shall invest for the future to strengthen competitiveness and to be a longterm sustainable and efficient company that generates ownership value.