2007Annual Report

SVENSKA SPEL ANNUAL REPORT 2007 Contents Svenska Spel’s assignment AB Svenska Spel CEO commentary 2 AB Svenska Spel is to arrange gaming and lotter- SE-621 80 Visby, Sweden The Swedish gaming market 4 Visiting address: Norra Hansegatan 17, ies on licence from the Government. SvenskaSpelnowandinthefuture 10 Visby, Gotland The brand 15 Tel +46 498-26 35 00 ARTICLE NO 621 016 AB Svenska Spel is to meet consumer interest Retail Division 22 Fax +46 498-26 36 30 in having a reliable alternative to illegal gaming Direct Division 28 operations, and strive to provide a broad service AB Svenska Spel CSRREPORT 3364 in both urban and rural areas. 106 10 Stockholm, Sweden Visiting address: Sturegatan 11, FINANCIALSTATEMENTS 65101 Social welfare is to be prioritised in the develop- Sundbyberg, Stockholm ment of gaming forms and throughout the Directors’ Report 65 Tel +46 8-757 77 00 2007 Annual Report Appropriation of profits 71 business as a whole. The risk of fraud and illegal Fax+468-982598 Financial reports, Group 72 gaming is also to be taken into consideration, Financialreports,ParentCompany 75 Customer Service +46 770-11 11 11 and security in gaming management maximised. Notes 79 Fax +46 498-26 35 34 Regulators must be able to provide efficient and Audit report 100 independent control. Five-year summary 101 www.svenskaspel.se AB Svenska Spel is to maintain a responsible CORPORATE positioning in its marketing which reflects social GOVERNANCEREPORT 102–112 engagement and prevents it being perceived as Board of Directors 108 overly assertive. Key management 110 Chairman’s statement 112 GLOSSARY 113 Financial Calendar 2008 Further information is available on AnnualGeneralMeeting 15April www.svenskaspel.se, Interimreport,January–March 21April www.casinocosmopol.se Interimreport,January–June 18July and www.spelalagom.se Interim report, January–September 23 October The Annual General Meeting will be held at 2.30 p.m. on Tuesday 15 April in Visby, Gotland. SVENSKA SPEL ANNUAL REPORT 2007 Contents Svenska Spel’s assignment AB Svenska Spel CEO commentary 2 AB Svenska Spel is to arrange gaming and lotter- SE-621 80 Visby, Sweden The Swedish gaming market 4 Visiting address: Norra Hansegatan 17, ies on licence from the Government. SvenskaSpelnowandinthefuture 10 Visby, Gotland The brand 15 Tel +46 498-26 35 00 ARTICLE NO 621 016 AB Svenska Spel is to meet consumer interest Retail Division 22 Fax +46 498-26 36 30 in having a reliable alternative to illegal gaming Direct Division 28 operations, and strive to provide a broad service AB Svenska Spel CSRREPORT 3364 in both urban and rural areas. 106 10 Stockholm, Sweden Visiting address: Sturegatan 11, FINANCIALSTATEMENTS 65101 Social welfare is to be prioritised in the develop- Sundbyberg, Stockholm ment of gaming forms and throughout the Directors’ Report 65 Tel +46 8-757 77 00 2007 Annual Report Appropriation of profits 71 business as a whole. The risk of fraud and illegal Fax+468-982598 Financial reports, Group 72 gaming is also to be taken into consideration, Financialreports,ParentCompany 75 Customer Service +46 770-11 11 11 and security in gaming management maximised. Notes 79 Fax +46 498-26 35 34 Regulators must be able to provide efficient and Audit report 100 independent control. Five-year summary 101 www.svenskaspel.se AB Svenska Spel is to maintain a responsible CORPORATE positioning in its marketing which reflects social GOVERNANCEREPORT 102–112 engagement and prevents it being perceived as Board of Directors 108 overly assertive. Key management 110 Chairman’s statement 112 GLOSSARY 113 Financial Calendar 2008 Further information is available on AnnualGeneralMeeting 15April www.svenskaspel.se, Interimreport,January–March 21April www.casinocosmopol.se Interimreport,January–June 18July and www.spelalagom.se Interim report, January–September 23 October The Annual General Meeting will be held at 2.30 p.m. on Tuesday 15 April in Visby, Gotland. Svenska Spel in summary Group Retail Division Direct Division In 2007, the organisation consisted of two divisions The Retail Division comprises the Retail Outlet, The Direct Division comprises the Internet & Mobile, Glossary – Retail and Direct – with associated business units, Restaurant and Association business areas. Casino, Bingo Halls and Subscription business areas. New business in 2007 and a number of Group staff units. Bingo halls Gross gaming revenue Payment for all purchased lotteries Palle Svensson, project and stakes for all gaming during the period. manager BingoLive The first bingo halls to be run by Svenska Spel, BingoLive, opened in autumn 2007 Net gaming revenue Gross gaming revenue less paid-out Key indicators Key indicators Key indicators winnings. 2007 2006 2007 2006 2007 2006 in Sundbyberg and Stockholm. Revenue from Gross revenue from Gross revenue from Net sales from gaming operations, etc. Net gaming gaming, etc., SEK m 21,716 20,281 gaming,etc.,SEKm 18,243 17,651 gaming, etc., SEK m 3,637 2,790 Subscription revenue less commissions to retailers and other revenue Netgamingrevenue,SEKm 9,598 8,905 Netgamingrevenue,SEKm 7,256 7,050 Netgamingrevenue,SEKm 2,342 1,855 pertaining to gaming operations. Net sales from gaming Operatingprofit,SEKm 3,973 4,046 Operatingprofit,SEKm 1,138 939 The new Subscription business area has operations, etc. 7,915 7,351 Operating margin, % 21.8 22.9 Operating margin, % 31.3 33.7 started a service that enables customers Earnings per share Profit for the year divided by the aver- Operatingprofit,SEKm 5,035 4,763 Averagenumberofemployees 216 210 Averagenumberofemployees 991 903 age number of outstanding shares. Operating margin, %1 23.2 23.5 to subscribe to lotteries. Operating margin Operating profit after depreciation and Average number of employees2 1,588 1,486 New brand design Association amortisation as a percentage of gross gaming revenue. 1 Excluding items affecting comparability 2 Other is the average number of staff employees The Svenska Spel brand has a new profile The Association business area launched Equity ratio Equity including minority as a percentage of with an updated winner symbol. The sym- Association lotteries that have a range of total assets. Significant events in 2007 Significant events in 2007 Significant events in 2007 bol has been integrated into product logos sporting themes and help boost funding Profit (surplus) The profit is that part of Svenska Spel’s rev- to better associate Svenska Spel with its for local clubs. enue that remains after paid-out winnings and deduction • 18-year age limit on all games other than lotteries. • Successful age control campaign in restaurants and • “Spelkoll” launched and gained 18,833 users of costs for Svenska Spel’s administration. The Parliament • “Spela lagom” and “Spelkoll” launched. bingo halls. in six months. gaming forms. has decided that a portion of the profits go to non-govern- • New ethical guidelines for marketing introduced. • Tightened age control in retail outlets and restaurants • Additional measures for responsible gaming mental and sporting movements for children and youth • ISO 27001 certification. with identification requirements. on internet poker. via the Swedish Sports Confederation and the National • Environmental guidelines for procurement of • Tightened control that retail outlets and restaurants • Svenska Spel achieves 35% market share of Board for Youth Affairs. A portion of the profit from Pen- goods and services updated with specific guide- do not have illegal VLTs. internet gaming in Sweden. ninglotten is paid to cultural projects. The remainder goes lines for areas with major environmental impact. • Restaurants and bingo halls certified in responsible • Casino Cosmopol grows by 15%. Record number to the State Treasury. • Successful channel strategy with increasing gaming. of people visit the casinos. Triss Månadsklöver was market shares. • Retailer education in responsible gaming has high • BingoLive: Svenska Spel opens its first four 1997–2007 Breach of Treaty The EU treaty (Treaty of Rome) was introduced in 1997. • Net revenue records achieved for Oddset, Keno, priority. bingo halls. effected on 1 January 1958. It consists of 314 articles and in Casino Cosmopol, internet bingo and internet • Digital information launched at selected retailers. • Service to lottery buyers extended with a Svenska Spel 10 years particular contains the ground rules for the common mar- poker. • Differentiated commission for Oddset. subscription option. ket. The EU Commission hears cases of suspected breaches • Topptipset launched at sales outlets and on • LaunchofOddsetLiveatretailers. • International trade magazine eGaming Review In 1997,AB Tipstjänst and Svenska Penning- of treaty, so called breach of treaty cases. svenskaspel.se. • Additional gaming objects introduced on Oddset appoints Svenska Spel as “Socially Responsible lotteriet AB merged to form AB Svenska “Spelkoll” “Spelkoll” is a unique service on svenskaspel.se • Limbo launched and closed. Lången. Operator of the Year” on internet. that actively works to prevent problem gaming through • New security organisation. • Special FöreningsTriss (club lotteries) with sporting • Austrian gaming organisation, Österreichische Spel, Sweden’s only wholly state-owned detecting players that risk having gaming problems in the • New IT organisation themes launched. Lotterien, decides to use Svenska Spel’s responsi- gaming company. future. • New organisation in the Communication & Society • Cooperation with Reitan Servicehandel Sverige AB ble gaming programme for internet poker. Ten years ago Svenska Spel was

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