Finnish gaming company Paf has cited the impact of investment in responsible gaming activities as one of the main reasons behind a significant year-on-year slump in profit during 2014.
The Åland Islands-based monopoly’s total profit for the full-year amounted to €17.2 million ($19.2 million), which represents a heavy drop of 45% on the €31.4 million posted in the previous 12-month period.
Operating profit also slipped from €30.9 million to €16.8 million, while revenue tumbled 9% to €98.1 million.
Paf said its online gaming platform was hit the hardest in 2014, with revenue from this section of the business down 11% on a year-on-year basis to €65.3 million.
The company also noted year-on-year losses within its land- and ship-based gaming operation, with revenue down 5% to €32.8 million.
“Compared with the previous two financial years, 2014 was a weaker year,” Paf chief executive Anders Ingves said.
“Profits were negatively affected by targeted major investments in areas such as marketing and by external factors such as ships changing flag, decisions by authorities, the general economic situation and stiffening international competition.
“In the short term, investments in responsible gaming have had and are continuing to have a negative impact on revenue and profit, but in the slightly longer term safer gaming is expected to result in customers wanting to play with us, leading to improved profits.
“We are not satisfied with this performance in terms of either revenue or profit, and we are going into 2015 with the aim of finding and implementing measures to restore growth to Paf.”
source : www.igamingbusiness.com
