Veikkaus posts 7.3% sales decline in 2024, looks ahead to market liberalisation
Summary
Veikkaus, the Finnish gambling monopoly, reported a 7.3% decline in sales for 2024, falling to €956.2 million. This decrease is attributed to a series of factors including increased taxation and regulatory changes affecting their gaming products. Despite the slump, Veikkaus aims to turn its fortunes around with the upcoming liberalisation of the Finnish online gambling market projected for 2026.
The company’s operating profit dropped by 19.6% to €466.8 million. The significant investments made in the business and an increase in lottery tax from 5% to 12% also contributed to this decline. As the company adapts to new regulations around games, there has been a marked growth in its digital customer base, which increased by 80,000 to 2.6 million users by the end of 2024.
Moreover, while Veikkaus’ B2C operations faced challenges, its B2B subsidiary, Fennica Gaming, expanded significantly into new international markets, indicating potential for future revenue growth.
Key Points
- Veikkaus’s sales decreased 7.3% in 2024, totalling €956.2 million.
- The company’s operating profit fell 19.6% to €466.8 million.
- Increased lottery taxes and regulatory changes impacted performance.
- Digital revenue now constitutes around 60% of total gross gaming income.
- Fennica Gaming, the B2B arm, is expanding internationally, with a 181% revenue increase.
- Veikkaus prepares for market liberalisation expected in 2026, aiming to enhance competitiveness.
Why should I read this?
This article is crucial for stakeholders in the gaming and gambling industry as it highlights the current challenges faced by a major player in the sector. Veikkaus’s struggles and its preparation for market changes could signal broader trends in the Finnish gambling landscape, making this a relevant read for anyone looking to understand potential shifts in market dynamics and the regulatory environment impacting gambling operations.