Veikkaus Expects €300M Profit Hit from Covid-19

Veikkaus, the gambling monopoly operator of Finland, is expecting a fall by as much as €300m in its 2020 profits, after reporting a 28.1% year-on-year decline in gross revenue and 33.6% drop in its H1 profit.

Gross gaming revenue for the six months to 30 June fell to €607.2m, with Veikkaus estimating that the total was down by around €200m as a result of the disruption caused by novel coronavirus

The operator’s revenue from casino games falls 46.0% to €243.2m, comprising €137.8m from slots in Veikkaus’ arcade and partner network (down 58.8%) and a €105.4m contribution from other casino games (including online), down 9.1%.

Veikkaus noted that online’s share of revenue grew 11.8% points to 44.1% of the half year total. However, it said this was more down to the retail decline than evidence of players migrating online. Online player numbers were up 21% year-on-year over the six months, it noted.

Revenue from the operator’s online casino games fell marginally year-on-year, to €101.0m. Land based slots’ contribution may decline further, with Veikkaus looking to reduce the number of machines in operation to 10,500 by the end of 2020.

Sports betting revenue across all channels also declined, falling 21.9% to €58.1m.  For lottery, the decline was more marginal, with H1 revenue down 4.3% at €305.9m.

“Like many other operators, Veikkaus had an exceptionally challenging spring. Due to the Covid-19 pandemic, our contribution to society will fall significantly below previous levels,” Regina Sippel, chief financial officer of Veikkaus, said.