In another financially successful year for Paf, revenue increased by 6.9% year-on-year, and net profit rose by 23.0% to €55.1m, marking a new annual record.
CEO Christer Fahlstedt expressed satisfaction with these results but cautioned about future profit prospects, particularly due to rising gaming taxes in various markets.
In Finland, lottery tax rates increased from 5% to 12% following the end of a temporary reduction.
Similarly, Swedish gambling tax rose from 18% to 22%, Estonia from 5% to 6%, and Latvia from 10% to 12%.
“We can be happy and proud with the past year,” Fahlstedt stated, attributing part of the success to a 27% increase in active customers.
He acknowledged that the temporarily low gaming taxes in Finland had positively impacted results, but he anticipated a continuing trend of increasing taxes.
Fahlstedt also discussed the impact of “much needed” demands for enhanced responsible gaming measures.
Recently, Paf reduced loss limits for players aged 20-24 to €8,000, following a reduction of its mandatory online loss limit from €20,000 to €17,500 in April 2023.
“Changes will result in reduced profitability and many operators will find it more difficult,” Fahlstedt noted, but emphasized Paf’s preparedness for future challenges.
Online growth significantly contributed to Paf’s revenue increase in 2023. Online business revenue climbed 8.2% to €153.8m, driven by growth in Sweden, Spain, and Latvia.
The acquisition of William Hill Latvia SIA and SIA Mr Green in June 2023 added €5.1m in online revenue.
Paf saw a 27.3% increase in registered online customers, reaching 615,557, and expects continued growth supported by ongoing marketing efforts.
Conversely, revenue from Paf’s land-based and ship segment decreased by 0.9% to €23.3m, despite a 4.0% rise in ship passengers.
Paf established new deals with Tallink Group, Eckerö Linjen, and welcomed Finnline’s M/S Finnsirius.
The operator also launched its first land-based GameRoom in Helsinki, offering amusement games and entertainment.
Paf also noted an increase in cashless payments, meeting customer demand for smoother transactions.
“Through these actions and innovations, we look forward to continued growth and improvement of our service and offerings,” Paf stated.
On the cost side, materials and services expenses rose 7.9% to €42.6m, while staff costs remained stable at €24.2m.
Depreciation and impairment costs slightly increased to €10.6m, and other operating expenses decreased by 2.0% to €52.9m.
Paf’s pre-tax profit rose by 27.9% to €60.0m.
After tax and deferred taxes, net profit increased by 23.0% to €55.1m.
Higher revenue and profit enabled Paf to distribute €31.4m in 2023 to support social, cultural, youth, sports, and environmental activities.
“It’s undeniably great that Paf is achieving a great result, allowing us to distribute a total of €31.4m,” said chairman Jan-Mikael von Schantz, praising the employees’ phenomenal efforts.