Veikkaus strengthens financial profile in Q1

Days after announcing its new Chief Financial Officer (CFO), Finland’s Veikkaus has confirmed it is back to profitability for the period ending 31 March.

According to Chief Executive Officer Olli Sarekoski, the state operator reported a 2.5% gross gaming revenue bump in Q1. Profitability will be essential for Veikkaus’ 2030 vision, as the firm prepares for a major international expansion.

This is a direct result of the new regulatory framework coming into effect July 2027, which will mark the start of Finland’s licenced regime as the country moves away from the current Veikkaus monopoly.

As the market becomes flooded with international companies, Veikkaus will need to financially withstand the competition while simultaneously navigating the complexities of a newly regulated landscape.

In addition, the state-owned operator is aiming for a 2030 deadline to become a sustainable global brand as it expands outside of Finland. Steps in that direction have already been taken thanks to its international games studio Fennica Gaming, which Sarekoski further revealed had commercially grown by 380% in Q1.

“These figures are very encouraging, but maintaining them requires continuous development, especially in a challenging economic situation and amid intensifying competition both domestically and internationally,” Sarekoski said.

To help achieve its financial objectives, Illka Kosola will step in as the new Veikkaus CFO in September. He is set to become one of the most instrumental figures for the restructuring of the operator, even more so given the circling speculations that Veikkaus could become publicly listed further down the line.

Maija Strandberg, the government official in charge of Finland’s state-controlled assets, stated: “Veikkaus will need to demonstrate that it can compete in that market. Is one year enough for the company to prove this?

“We would then be at the end of 2028. If we take any action, we are approaching the turn of the decade.”