Nordic-facing operator Paf announced that it achieved a new high in revenue for the fiscal year 2024, driven by growth in its online gambling sector. However, earnings saw a slight decline compared to the previous year due to increased tax rates.
According to Paf’s full-year report, the group’s revenue for the year ending on December 31, 2024, reached €183.0 million ($207.4 million), surpassing the previous year’s record of €177.1 million by 3.3%.
Online revenue exceeds €161.2 million
In 2024, growth was observed in both online and land and ship segments. The online revenue for the year amounted to €161.2 million, showing a 4.8% increase from the previous year, with slots and sports betting performing exceptionally well, as per Paf.
The record number of registered customers in 2024 reached 685,406, reflecting an 11.4% growth year-on-year. Paf anticipates further growth in active customer numbers in 2025 through effective marketing strategies and technological advancements.
On the other hand, revenue from the land and sea segment, encompassing arcades and gaming operations on cruise ships and ferries, decreased by 6.4% to €21.8 million. This drop was attributed to higher tax rates, specifically the increased lottery tax in Finland, which rose to 12% of revenue.
Despite the decline in revenue, positive trends were noted within the segment, including a 2.0% increase in passenger numbers and high partner satisfaction levels.
Impact of Tax Changes on Paf
While revenue grew, Paf experienced a decrease in net profit for the year due to higher tax rates in certain markets.
In 2024, the group paid €11.8 million more in taxes compared to the previous year, influenced by tax hikes in Finland, Sweden, Estonia, and Latvia. These tax increases had a detrimental effect on Paf’s financial performance.
CEO Christer Fahlstedt remained optimistic, stating that the business is equipped to manage higher tax rates in the long run, emphasizing the importance of gambling operators contributing to society through taxation.
“We had a successful year in 2024, despite the impact of increased gambling taxes on earnings. Paf is well prepared to handle tax hikes due to our diverse customer base,” Fahlstedt remarked.
1.5% Decline in Paf’s Net Profit
Although costs for materials and services rose, some savings were realized in staffing. Depreciation and amortisation expenses, as well as other operating costs, increased.
After accounting for financial costs, pre-tax profit for the year decreased by 1.7% to €59.0 million. Paf paid €5.7 million in taxes and accounted for €1.0 million in deferred taxes.
Consequently, the net profit for the year stood at €54.3 million, a 1.5% decrease from the previous year.
Fahlstedt: Paf’s Sustainable Growth Approach
Paf affirmed its commitment to societal contributions despite the drop in net profit, allocating €21.5 million for various social, cultural, and environmental activities.
Mikael von Schantz, Chairman of Paf, praised the consistent level of funds allocated annually and the responsible gaming measures taken by the company, emphasizing Paf’s unique position within the industry.
In March, Paf adjusted its player loss limits again, implementing lower limits for different age groups to promote responsible gambling practices.
“We aim to be a sustainable entertainment provider,” Fahlstedt emphasized. “Our performance demonstrates that strong results can be achieved while upholding responsible gaming standards.”
Fahlstedt expressed surprise and disappointment at the decision of state-owned competitor Veikkaus to increase its loss limits, contrasting it with Paf’s commitment to responsible gaming.
